Scottish and Southern Electricity Networks (SSEN) is to use Piclo’s software platform to trade electricity flexibility – the first commercial agreement between Piclo and a UK distribution network operator (DNO).
SSEN will use Piclo’s flexibility marketplace to buy smart energy from providers through online auctions and identify areas of network congestion. This will push electricity prices down by increasing the transparency and availability of flexible energy supply and reducing the need for investment in new generation or network.
The deal follows a BEIS-supported trial with all six UK DNOs and 175 smart and flexible energy providers totalling 4GW.
James Johnston, chief executive and co-founder of Piclo said: “Today’s deal with SSEN is really important for Piclo following our successful UK-wide pilot.”
Piclo’s tech platform enables visibility of areas of network congestion and correlates them with flexibility providers in nearby areas. It includes demand-side-response, batteries and behind-the-meter generation. The platform also gives DNOs control of local production, consumption and storage of power which will enable further integration of renewables and electric vehicles into the grid in a cost-effective way.
Payment for providing flexibility services will commonly consist of an availability payment and a utilisation payment, and typically be around £300/MWh. Providers will also benefit from a new streamlined approach to the procurement, auction, contracting and settlement processes that Piclo provides.