The balancing and frequency markets will double in value by 2030 as the evolution of the power market creates £6 billion of investment opportunity for battery storage and other flexible and distributed generation assets.
Ofgem has approved a regulation change that will allow parties without a supply licence to participate in the Balancing Mechanism as part of preparations for the Great Britain’s involvement in a Europe-wide energy balancing platform.
Battery assets have been used in the Balancing Mechanism for the first time via a virtual power plant, marking the start of a new era in energy storage revenues in the UK.
Limejump has been admitted into the Balancing Mechanism (BM) using its Virtual Power Plant (VPP), laying claim to being the first to use an aggregated BM unit (BMU) in the market.
Flexibility providers with units as small as 1MW will be able to access the Balancing Mechanism (BM) by April next year under proposals published by National Grid which will also allow aggregators to play in the market.
Flexitricity has successfully secured gas and electricity supply licences from Ofgem, giving the demand response aggregator the green light to enter the balancing mechanism.
The capacity market is rapidly becoming “outdated” after the latest auction failed to secure capacity and value for new technologies like energy storage, which is now in “a state of flux” following changes to de-rating factors.
National Grid has revealed a simplified, more standardised approach to Firm Frequency Response (FFR) procurement whilst teasing the first details of its fast-response follow-up to EFR.
