IntraFlex

Objective(s)

The objective of the project is to develop learning on:

• The operability of short term flexibility markets
• The value of increased information at the day-ahead stage to suppliers
• The value of an integrated link for rebalancing in the intra-day market

Problem(s)

It is acknowledged that to make flexibility services commercially attractive to participants, the ability to stack revenues from multiple sources is essential. Previous work in our SYNC, Entire and EFFS projects have looked to stack revenues against Electricity System Operator (ESO) services, however limited work has been done to link services into wholesale processes. The omission of these markets limits the potential for stacking revenue.

Furthermore, this lack of link creates imbalance in the wider system but does not account for it. Whilst Balancing Mechanism (BM) providers of ancillary services see their positions adjusted following calls by the ESO, there is no such process for the DNO. With current volumes of DNO called Demand Side Response (DSR) limited, this imbalance is lost in the noise, however as volumes increase a process to account for them would allow for the whole system cost of the action to be reflected.

NODES has developed a marked design for an integrated flexibility market aimed at serving all levels of the grid both Distribution System Operator (DSO) and ESO.

Method(s)

The focus of the trial is to understand how to deliver a link between DNO procurement activity and Balance Responsible Party (BRP) imbalance positions.

As such the project will look to trial a short-term marketplace for the procurement of DNO flexibility. This will trial an active rebalancing link to the intraday market operated by Nord Pool as well as an information exchange with day-ahead markets. The project also aims to open up for independent aggregators to participate alongside BRPs.

• Scope

  The trial will be broken into five work packages based around two trials. These trials will consist of a test of NODES’ ShortFlex service for DNO flexibility, followed by a more comprehensive trial with automated rebalancing of imbalance positions through the integration with the GB intraday market.

  The work packages are:

  • WP1 Project Management and reporting
  • WP2 Detailed Stakeholder Engagement & Market Design
  • WP3 NODES System & Process build
  • WP4 WPD System & Process build
  • WP5 Trial

  WP2 will include an extensive engagement piece with potential stakeholders to refine the proposed market design and validate assumptions and value flows.

  WP3 will focus on the development of the NODES platform and its deployment within WPD. The development work will be carried out at NODES expense.

  WP4 includes the design of new Payment Mechanics, the build of a link between the NODES platform and dispatch processes, a review of procurement law and analysis on the ability to target future audits with existing data.

  WP5 will trial the platform. This will be broken into two sub-trials, with the initial phase looking to test the short term flexibility markets and the second phase testing the full intraday rebalancing link.

• Success criteria

  Development of a UK Market design for short term flexibility market that reflects imbalance costs

  • WPD access to ShortFlex products that have the potential to benefit the distribution network
  • Procurement of ShortFlex via the NODES platform
  • Demonstration of ShortFlex products that limit supplier exposure to imbalance costs
  • Delivery of the project on time and on budget
• Potential for new learning

  The project expects to develop learning on the following topics:

  • The operability of short term flexibility markets
  • The value of increased information at the day ahead stage to suppliers
  • The value of an integrated link for rebalancing in the intra-day market
• Documents and links

  NIA Project Registration and PEA Document

  Initial Market Design

  Expression Of Interest Form

  Market Design

  Technical Overview

  Six Monthly Project Report: Oct 19 – Mar – 20

• Monthly updates

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