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Balancing Mechanism Wider Access webinar - key takeaways
If you didn't get a chance to join us for our live webinar this week, here are the key takeaways:
- The implementation of Ofgem’s targeted charging review will see a significant loss of triad benefit from April 2021, but the loss of a fixed benefit will be replaced with a market-driven approach of “run when the system needs it”, with optimisation of assets through closer to real-time procurement of flexibility and agility to move between flexibility markets.
- One of those key markets is the Balancing Mechanism, a market traditionally dominated by large power plants and licenced generators but now opening to all shapes and sizes of flexibility, including assets less than 1MW in size (although they must be aggregated with other assets by GSP group, or DNO area).
- The introduction of Virtual Lead Parties will allow any source of flexibility to enter the BM, meaning a partner like Flexitricity can optimise your flexibility in the BM without you making Flexitricity your energy supplier, though that is of course an option. This wider access to one of National Grid’s most important balancing tools represents a huge opportunity for all kinds of flexibility.
- Flexitricity is in the process of becoming a Virtual Lead Party and hopes to be one of the first, possibly the first, to dispatch assets in the BM in this way in the coming months.
- But the question of whether to access the BM via VLP or through Flexitricity’s energy supply agreement, Flex+, depends on your business’s energy supply needs: both remain great options though.
- P375 should be ready later this year, making settlement of BM actions more accurate for VLPs.
Flexitricity has been optimising assets in the Balancing Mechanism for nearly 18 months, continuously improving our algorithms and our optimisation strategies over this time. Combining this with our industry experience and market knowledge, we are ideally positioned to optimise flexibility and maximise returns for our Energy Partners. And to qualify that statement, our recent Energy Partner survey revealed 95% were very or extremely satisfied with their overall experience with Flexitricity so we’d be delighted to speak to you about how we can partner with you in future.