Projects
Projects: Projects for Investigator |
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| Reference Number | NIA_NGSO0017 | |
| Title | Frequency Response Auction Trial | |
| Status | Completed | |
| Energy Categories | Other Power and Storage Technologies(Electricity transmission and distribution) 50%; Other Cross-Cutting Technologies or Research(Energy Economics) 50%; |
|
| Research Types | Applied Research and Development 100% | |
| Science and Technology Fields | SOCIAL SCIENCES (Economics and Econometrics) 50%; ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering) 50%; |
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| UKERC Cross Cutting Characterisation | Not Cross-cutting 75%; Sociological economical and environmental impact of energy (Policy and regulation) 25%; |
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| Principal Investigator |
Project Contact No email address given National Grid plc |
|
| Award Type | Network Innovation Allowance | |
| Funding Source | Ofgem | |
| Start Date | 01 December 2018 | |
| End Date | 01 June 2021 | |
| Duration | ENA months | |
| Total Grant Value | £1,142,000 | |
| Industrial Sectors | Power | |
| Region | London | |
| Programme | Network Innovation Allowance | |
| Investigators | Principal Investigator | Project Contact , National Grid plc (100.000%) |
| Industrial Collaborator | Project Contact , National Grid plc (0.000%) |
|
| Web Site | https://smarter.energynetworks.org/projects/NIA_NGSO0017 |
|
| Objectives | We propose to design implement and trial a weekly cleared priced auction. The trial will seek to procure a small, defined volume of frequency response through a weekly cleared price auction. The products will be standardised and our requirements communicated to the market ahead of time. The auction will operate alongside our existing commercial and mandatory markets. The auction will use pre-defined conversion factors to automatically trade off between more than one product, including low/high and static/dynamic frequency response. We propose to design, implement and trial a weekly cleared price auction for a volume of frequency response. The aim of the trial is to test the hypothesis that closer to real-time procurement of frequency response will lower overall procurement costs by increasing liquidity and transparency in the market, and deliver a stable market price for the relevant products. WP1: Design. Following a brief project initiation, this phase will deliver the detailed solution design of the auction platform, the flows and interfaces required, and any IT and operational procedures.WP2: Development. Based on the detailed design, this phase will specify, build and internally test the auction platform and operational procedures, before developing governance arrangements, providing training and testing with some third-parties in a secure environment.WP3: Trial. This phase will trial the auctioning of real MW of frequency response to understand the impacts of closer-to-real-time procurement on the market. At the end of the project, the ESO will understand the impact of closer-to-real-time procurement on: Market liquidity Diversity of providers Ability for renewables and DSR to bid Market and price transparency Market and price stability Cost of frequency response vs counter-factual Cost of administering frequency response market vs counter factual Internal systems and processes | |
| Abstract | We propose to design, implement and trial a weekly cleared price auction for a volume of frequency response. The aim of the trial is to test the hypothesis that closer to real-time procurement of frequency response will lower overall procurement costs by increasing liquidity and transparency in the market, and deliver a stable market price for the relevant products. | |
| Publications | (none) |
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| Final Report | (none) |
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| Added to Database | 09/11/22 | |
