A trio of new UK frequency response products are increasing Demand Side Response (DSR) revenue opportunities for fast-acting energy assets.
Following the launch of the new Dynamic Containment frequency response market in September 2020, National Grid Electricity System Operator (ESO) will introduce Dynamic Moderation and Dynamic Regulation services next year.
The rapid replacement of fossil-fuel plants with variable renewable power, such as wind and solar, and rising electricity demands from transport and heat, is making grid stability more challenging
A key part of this challenge is frequency regulation, which is used by grid operators to finely balance supply and demand so that the power system runs safely and reliably. It's typically the most lucrative DSR opportunity as it requires the fastest response to address small balancing mismatches at critical times.
In the UK, this is the responsibility of National Grid ESO, which must keep electricity system frequency as close to 50Hz as possible at all times. The ESO manages the second-by-second actions needed to keep electricity demand and generation balanced and maintain frequency within the required safe threshold.
Frequency response products are an important part of the ESO's existing DSR toolkit. Previously, this has been met via a suite of Firm Frequency Response (FFR) products, which require a maximum 10 second flexible dispatch time. But the transforming energy system increasingly requires faster and more agile flexibility market participation, such as the new trio of frequency response products.
The ESO's Dynamic Containment product offers lucrative new opportunities for batteries and aggregated assets that can react in 1 second to meet critical grid balancing needs. The two additional new frequency response markets are expected to go live from April 2022
As Europe's number one optimisation provider, Centrica Business Solutions are major participants in Dynamic Containment - deploying flexibility from our own 49MW Roosecote battery storage facility to support grid stability. We're also working with customers to introduce other fast-acting assets into this service, while also preparing to optimise opportunities as soon as the two new markets open.
The current design of the Dynamic Containment product means it is particularly beneficial for battery storage systems, but we continue to work with the ESO to widen participation for other frequency response providers.
At the current time, the design of the two new products is evolving, but we expect them to require a response rate between 1 and 10 seconds, together with more frequent activations.
There's an exciting opportunities for customers to participate in all three of these new response services. By adopting a multi-market approach, we can help businesses to mitigate risk and stack revenues – to exploit the most lucrative DSR opportunities.
We continue to manage and optimise a large and wide aggregated portfolio of domestic and commercial assets through FFR, but The ESO is seeking to phase out its existing FFR suite as the new faster response products become fully operational by April 2022.
Centrica Business Solutions partnered with Eelpower in 2020 to optimise its 10MW UK battery, which was first commissioned in 2017.
We're ensuring participation in frequency response and many other flexibility opportunities, including a guaranteed fixed return for the seven-year term together with upside payments.
We’re using a multi-market optimisation approach to support grid balancing – from months in advance right up to real time. Rather than locking into one market, we use our AI energy optimisation platform and advanced trading capabilities to determine the most cost-effective, high value route to market.
Centrica Business Solutions has the proven game-changing AI utilities optimisation solutions to unlock higher returns from frequency response and other DSR and flexibility opportunities.
We have unique capabilities that match technological excellence with a world-class dedicated energy trading team and extensive commercial energy expertise. Our multi-market approach can take your optimisation strategy to rewarding new levels.