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Projects: Projects for Investigator
Reference Number NIA2_NGESO005
Title Stability Market Design
Status Completed
Energy Categories Other Cross-Cutting Technologies or Research(Energy Models) 50%;
Other Cross-Cutting Technologies or Research(Energy system analysis) 20%;
Other Power and Storage Technologies(Electricity transmission and distribution) 30%;
Research Types Applied Research and Development 100%
Science and Technology Fields ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering) 100%
UKERC Cross Cutting Characterisation Systems Analysis related to energy R&D (Energy modelling) 100%
Principal Investigator Project Contact
No email address given
National Grid ESO
Award Type Network Innovation Allowance
Funding Source Ofgem
Start Date 01 June 2021
End Date 31 December 2021
Duration ENA months
Total Grant Value £300,000
Industrial Sectors Power
Region London
Programme Network Innovation Allowance
Investigators Principal Investigator Project Contact , National Grid ESO (100.000%)
  Other 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_NGESO005
Objectives This project will be a desk-based study run by AFRY with input from the ESO and wider stakeholders. The project will: Set the scene by understanding the future world then review and describe the existing arrangements for stability. This will help in identifying future needs for a stability market. Define objectives, assessment criteria and constraints. Those will be used in the evaluation of the different market design options. Using a “building blocks” approach, collate them into straw man design options and develop detailed end-to-end designs.Assess the different market design options against the assessment criteria - the assessment will rely on worked examples and be qualitative or include some form of quantification.Recommend a stability market design.Stakeholders will be able to input in this project through various workshops and a questionnaire. Engagement will take place at different stages of this project to gather feedback on the different options, the assessment, etc. Future potential projects might also analyse further the interactions between the stability market and other markets (e.g. reactive, response). The overall scope of the project is to create options for the delivery of a stability market for GB, assessing these options and recommending one stability market design. Operational costs arise due to the management of stability levels. Inertia has traditionally been available as a by-product through market despatch of synchronous generation in the Balancing Mechanism. Additional operational cost has also been seen from constraints caused by low short circuit levels. In stability pathfinder phase one the ESO spent £328 million on 12. 5GVA.s for services delivering between 2020 and 2026. (https://www.nationalgrideso.com/future-of-energy/projects/pathfinders/stability)The introduction of a market for stability will create competition which should lead to lower prices for end consumers. It will create an additional revenue stream for providers as well as a more transparent, open process. It is also expected to enhance the security of the system. Because no such market exists, the ESO cant fully assess the potential cost reduction, but this research project will evaluate the potential benefits.Currently traditional fossil fuel plant provides a lot of the stability services. The ESO aims to create a market which allows all sources to compete in the provision of stability to the network. This will enable providers to access to an additional revenue stream which will also enhance the business case for renewable generation. The objective of this project is to recommend a market design for stability. The project will first understand the current stability situation in the GB market, then create different options for a stability market, assess those options and choose a preferred one.
Abstract Traditionally synchronous generation has provided stability requirements (inertia, Short Circuit Level & reactive power support) as a natural by-product. As more non-synchronous generation enters the system, the ESO needs alternative sources of stability.Stability pathfinders allow us to test procurement approaches for long term stability requirements, but the ESO still rely on the dispatch of synchronous generation in the Balancing Mechanism to ensure stability. The development of a stability market could offer the ESO a route to access stability services through an open, transparent and competitive market. This project will consider current stability arrangements and investigate the best option for an end-to-end stability market. This could allow the ESO to start to develop a stability market and best optimise long term and short-term stability procurement.
Publications (none)
Final Report (none)
Added to Database 19/10/22