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Piclo provides single platform for Capacity Market secondary trading

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Piclo has launched Piclo Exchange, a secondary trading marketplace for Capacity Market Providers.
The Capacity Secondary Market has seen almost 300 trades in each of the previous two delivery years, worth between £15M and £35M, Piclo says. Now Capacity Market Providers can register to find, buy and sell existing contracts with other qualified providers in a single place.

Piclo Exchange was developed as part of the BEIS FleX Exchange innovation trial, during which Piclo collaborated with the National Grid EMR team and Capacity Market Providers to understand barriers and help shape improvements to secondary trading in the Capacity Market. Piclo says that it will provide additional value streams and revenue stacking opportunities on Piclo’s existing marketplace, Piclo Flex, and it will optimise participation by providing access to multiple flexibility markets via one interface.

In future the marketplace could be applied to other secondary markets, such as DSO flexibility markets.

James Johnston, CEO and co-founder, said: “Piclo Exchange is an industry-first and will directly contribute to creating a more transparent and effective secondary market in the Capacity Market. Previously, a lack of visibility in the process for CM secondary trading was a barrier, with no open way to know who was looking to trade or how to get the best price.

“Our new marketplace offers compelling new revenue and de-risking opportunities for Capacity Market Providers which will make the market more efficient and liquid. We are looking forward to welcoming new Capacity Market Providers and encourage them to register to join the growing number of +10 active providers who have already come on board.”

Piclo Exchange builds on Piclo Flex, which brings together System Operators and Flex Providers, with a total of 13.9GW of flexible capacity registered. Since 2018, Piclo has supported the business-as-usual flexibility procurement of six of the UK DNOs and is commercially contracted with UK Power Networks, SP Energy Networks and Electricity North West.