National Grid has announced it will stop tendering four frequency response and two short term operating reserve (STOR) products, aiming to reduce complexity and help new providers enter the market.
The System Operator will bring Enhanced Frequency Response, Rapid Frequency Response, Frequency Control by Demand Management and FFR Bridging into a new suite of frequency response products to be launched in 2018. Similarly, the Enhanced Optional STOR and STOR Runway will largely be folded into a single redesigned STOR market.
Two other products, Max Gen and Fast Start have not been used recently and their objectives will be met through other reserve products.
The System Operator said Firm Frequency Response (FFR)was currently the primary entry product for new providers and it had seen a 23-fold increase in the number of tenders received since January. ,In August alone, 206 tenders were received . “This makes interpreting the market very difficult, both for the SO and industry, due to the volume and variability of tenders,” it said.
It promised more information in November on other “quick wins” as it refines its product suite. Charles Hardcastle, head of energy at Carter Jonas, called the change a “promising step in the right direction,” saying, “It’s welcome to see National Grid recognise the potential conflict between existing Enhanced Frequency Response (EFR) and new contracts coming to the market”. He added that it would “enable suppliers to make a decision on the most suitable product for their business by ensuring the door is kept open for developers rather than tying them into existing contract obligations.
“…This is the first time we have seen real concrete plans come from National Grid, and we anticipate this will bring enhanced confidence and assurance to suppliers, developers and the market overall.”