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Reference Number NIA2_NGESO030
Title Enduring Cross-Border Balancing
Status Started
Energy Categories OTHER POWER and STORAGE TECHNOLOGIES(Electricity transmission and distribution) 100%;
Research Types Applied Research and Development 100%
Science and Technology Fields SOCIAL SCIENCES (Economics and Econometrics) 10%;
SOCIAL SCIENCES (Politics and International Studies) 40%;
ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering) 50%;
UKERC Cross Cutting Characterisation Sociological economical and environmental impact of energy (Policy and regulation) 100%
Principal Investigator Project Contact
No email address given
National Grid ESO
Award Type Network Innovation Allowance
Funding Source Ofgem
Start Date 01 September 2022
End Date 31 March 2023
Duration ENA months
Total Grant Value £200,000
Industrial Sectors Power
Region London
Programme Network Innovation Allowance
 
Investigators Principal Investigator Project Contact , National Grid ESO (100.000%)
  Industrial Collaborator Project Contact , National Grid plc (0.000%)
Web Site https://smarter.energynetworks.org/projects/NIA2_NGESO030
Objectives This project, developing a CBA and simulation for a Cross-Border Balancing solution with all connected EU TSOS (RTE, ELIA, TENNET, Swissgrid, Energinet, Stattnett, EirGrid plus SONI, SwissGrid and future interconnections will also be considered), with the outcome, to provide an ESO recommended approach. We will use the CBA to help with our conversations externally with GB industry and EU TSOs to get to a best-case outcome for all parties.The project will be broken down into 3 work streams. Workstream 1: Identification and pre-screening of the options for cross border balancing.Provide an overview of the several scenarios for cross-border balancing, along with their characteristics and a ranking system followed by recommendations.Workstream 2: Balancing market modelling and cost-benefit analysis.Based on defined scenarios in workstream 1, we will leverage our balancing market model to forecast volumes and prices over the 2033-2036 period.This workstream will also consider the uncertainty around future market fundamentals.  Workstream 3: Multicriteria assessment and recommendations.The objective of this workstream is to rank the different scenarios with regards to criteria that are not results from the modelling. The impact on concerned parties is a key consideration in implementing a new market.A final report will be delivered describing the different solutions for a cross-border balancing market between GB and the EU and ranking those solutions. The Risk Assessment Risk Threshold rating for this project is Low (Score 1) TRL Steps = 1 (2 TRL steps)Cost = 1 (£200k)Suppliers = 1 (1 supplier)Data Assumptions = 2Total = 4 (Low) The scope of the project is to carry out CBA modelling on GB to EU ICs for a number of potential markets. The analysis will highlight the operational and financial benefits to both GB and the connected EU regions. This will help the ESO to determine which market is most suitable to develop. This project will include:Potential Market optioneering and feasibility studies to determine the 3-4 market scenarios.Economic analysis of the potential markets to assess benefit to each region.Ranking and recommendations for the possible markets. To deliver a final report outlining the financial and operational benefits, describing, and ranking, the different solutions for a cross-border balancing market between GB and the EU.
Abstract Post-BREXIT, with the UK leaving the EU, the UK is no longer able to join TERRE (Territory, Energy & Employment) and MARI (Manually Activated Reserves Initiative) platforms which enabled the exchange of balancing energy with different lead times and different products. The Trade Cooperation Agreement instructs the UK to create a GB cross-border balancing market. This project is the first step in exploring the possibilities and implications associated with the introduction of a new balancing market in GB, able to interact with EU balancing markets. This modelling will explore the three proposed market models and create a CBA (Cost Benefit Analysis) for each one. BEIS would like to take the results to the Special Committee of Energy.
Publications (none)
Final Report (none)
Added to Database 14/10/22