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Projects: Projects for Investigator
Reference Number	NIA_UKPN0052
Title	Energy Exchange: Market-Based Curtailment Management
Status	Completed
Energy Categories	Other Cross-Cutting Technologies or Research(Energy Economics) 100%;
Research Types	Applied Research and Development 100%
Science and Technology Fields	ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering) 100%
UKERC Cross Cutting Characterisation	Not Cross-cutting 100%
Principal Investigator	Project Contact No email address given UK Power Networks
Award Type	Network Innovation Allowance
Funding Source	Ofgem
Start Date	01 September 2019
End Date	01 August 2022
Duration	ENA months
Total Grant Value	£985,800
Industrial Sectors	Power
Region	London
Programme	Network Innovation Allowance
Investigators	Principal Investigator	Project Contact , UK Power Networks (100.000%)
	Industrial Collaborator	Project Contact , UK Power Networks (0.000%)
Web Site	https://smarter.energynetworks.org/projects/NIA_UKPN0052
Objectives	The project aims to address the problems identified above by completing a feasibility study of a Market-Based Curtailment Mechanism (MBCM) operated by the DSO. This would develop and test market based approaches for managing curtailment of generators connected to the network, and signal where network reinforcement is the best value solution. The project will also consider how market-based curtailment management can integrate with the national Balancing Mechanism, and provide flexible generators with a single route to market for capturing flexibility value. If the feasibility study proves to be a viable option, the MBCM will go through a live trial period. This will run concurrently with the current system to prove monetary value. Outline the scope and deliverables (further detailed in P6).Project is split into different tasks:1. Project Kickoff and Initial Market Design (initial cost-benefit analysis and sizing the market opportunity).2. Data Analysis from existing FDG curtailment data.3. Detailed Market Design and Stakeholder Engagement a) Modelling market design(s) b) Sensitivity testing c) Engagement and trial designMay 2021 update based on the outcome of tasks 1-44. Market Simulation and cost-benefit analysis5. Trial: Develop contract and trial processes / methods with new market rules applied to a sample of planned outages including amending the live outage planning, tracking and integration platform (Network Vision), but without live curtailment trading 6. Closedown (project write-up) Key Objectives: Better understand the feasibility of market-based curtailment management, and what is required to holistically deploy one. This may include recommendations for what regulatory incentives are required to make this viable. Understand from historic FDG curtailment data what the potential benefits are of a MBCM. Forecasting future levels of curtailment, given current levels of growth in rooftop solar and electric vehicles. To design a system compatible with multiple technology and commercial solutions. Quantify the financial value of market-based curtailment management for customers and the DSO. Quantify impact the system will have on UK decarbonisation. To simulate market-based curtailment management and, if successful, carry out a live trial. Develeop learning on whether allowing generators who have non-firm connections to trade access rights with others will lead to holistic system benefit. Use learnings from MBCM to develop a more sophisticated reinforecement trigger. This will signal when reinforcement is the least cost solution when taking into consideration the cost of curtailment. Desired Outcomes: Progress towards a DSO greater understanding of what will be required. Enable better management of connection queues. Improve the profitability and reduce curtailment for DER, especially low carbon technologies, on our network . Facilitate the low carbon transition of the UK economy.
Abstract	There are limitations to the existing system which manages Flexible Distributed Generation (FDG) connections, which in turn limits the ability of connected Distributed Energy Resources (DER) to support the GB energy system. The system issues are as follows:1. Current system is based on a last in first out (LIFO) system. It does not consider the distance of a customer from the nearest substation, which in some cases leads to higher overall DG curtailment.2. Existing FDG only applies to generation. It does not enable other types of DER to connect flexibly. 3. Some FDG customers would be interested in participating in National Grid balancing services. However, if a generator was curtailed when called on to provide a balancing service, there would be a financial penalty imposed on them. We understand from our customers that the risk of penalties outweighs the benefit of participating in the market, which limits their ability to maximise income from their assets.We anticipate a second influx of additional DG across GB networks sometime in the future. As it takes time to reinforce the network, it would be advantageous to identify where it is appropriate to maximise network capacity using market-based solutions. This will benefit customers and the network, and allow network-based solutions to be deployed quickly when and where they are needed.Ofgem have asked the ESO and network companies to lead on reviewing incremental improvements to the allocation of access rights (eg better management of connection queues, allowing generation who have non-firm connections to trade with others to reduce the extent they are curtailed, enabling the exchange of access rights between users).
Publications	(none)
Final Report	(none)
Added to Database	14/12/22