Balancing Mechanism Wider Access

The Balancing Mechanism (BM) has so far only been accessible to energy suppliers and licenced generators; through the introduction of a new market structure, Virtual Lead Parties (VLP), National Grid ESO is opening up access to this real-time balancing market for all sources of electrical flexibility. This is a huge opportunity for those flexible energy users and small generators who previously haven’t been able to access the full range of revenue streams available to flexibility.

A big milestone

On 23rd April 2020, Flexitricity completed the first ever Balancing Mechanism transaction as a Virtual Lead Party through Balancing Mechanism Wider Access route to market by dispatching two batteries owned by Philip Dennis Foodservice.
 

Roisin Quinn, Head of National Control at National Grid ESO, said:

“We’re excited to see the first example of wider access to our balancing mechanism as a virtual lead party in action with Philip Dennis Foodservice and Flexitricity. Wider access opens up opportunities for new providers and technologies to become part of the electricity market, making it smarter and more flexible as we shift away from traditional large thermal power generation to cleaner, decentralised power.

“This transformation is central to the way we balance the system today – particularly as we work to meet some of the challenges associated with balancing the system in lockdown conditions – and forms an important part of being able to operate carbon free by 2025.”

Click HERE to read the full press release.

BM Wider Access Webinar

• Roadmap – widening access to the BM in the context of broader market changes, how it came about and what’s to follow.
• Regulatory landscape and Flexitricity’s new VLP role in widening the market access.
• Concepts – we define some key concepts, including the Balancing Mechanism, Virtual Lead Parties, Secondary BMUs and more. 
• Participation - what types and size of assets can participate. 
• Range of opportunities - The difference between accessing the BM through Flexitricity+ Energy Supply and through Flexiticity’s VLP offering.
• Revenue agility – strategies for optimising revenue from the energy markets.
• Practicalities – registration requirements, metering / settlement and payments.
• Q&A