The National Energy System Operator (NESO) has announced it will launch the first phase of its new frequency balancing service in early December.
The new Quick Reserve service will replace NESO’s existing Fast Reserve service, with Phase One of Quick Reserve becoming operational on 3 December 2024.
Quick Reserve will be responsible for quickly responding to supply and demand imbalances on the electricity network to return the grid frequency to close to 50.0 Hz quickly.
Units operating on the system will be separated into two categories – Negative Quick Reserve (NQR) assets, which will respond when supply outstrips demand, and Positive Quick Reserve (PQR) assets, which will be called upon when demand exceeds supply. Eligible units for the system must have a minimum of 1MW of generation or demand capacity and must be able to meet the full NESO requirements within one minute.
The live auction platform will open for Quick Reserve bids tomorrow (19 November). The first co-optimised auction for the service will take place on 3 December, with service delivery starting at 11 PM on 3 December.
According to NESO, this first phase will make system balancing much more efficient, which could deliver consumer savings of as much as £29 – £32 million each year. The second phase of the service will be delivered in the summer of 2025, and NESO states that it is currently engaging with the energy industry and the regulator Ofgem on the proposed service and procurement design.
Flexibility and balancing services increasingly vital
The inconsistent nature of renewable energy generation sources is making the importance of flexibility and balancing services increasingly clear, and distribution network operators (DNOs) and other stakeholders are taking note.
Battery energy storage systems (BESS) are an incredibly useful tool for keeping the grid running during emergencies, as a recent incident proved. Last month, the NSL interconnector linking the UK and Norway suddenly tripped, halting 1.4GW of power from entering the UK and sending frequency on the network plummeting within seconds. Thanks to a number of BESS assets across the UK, which injected 1.5GW of supply into the grid, frequencies were able to recover within two minutes.
Despite events like these showing just how vital BESS assets are to grid balancing, BESS developers have criticised NESO for frequently underusing or “skipping” BESS assets during times of energy oversupply, instead leaning on more expensive balancing methods such as curtailment of wind assets. Following the release of an open letter from several key BESS developers, including Zenobē, Eelpower, Harmony Energy and Field, NESO has laid out plans to make a “meaningful impact” on battery skip rates, including updating control room algorithms and collaborating with experts.
In the wider flexibility arena, DNOs are working to enhance their flexibility offerings. Last week, Electricity North West (ENW) announced that it had opened a £12 million tender for 870MW of flexibility services. Notably, this tender includes low voltage service opportunities as well as the high voltage and extra high voltage offerings more usually put forward for tender.
