National Grid ESO (ESO), UK Power Networks (UKPN) and National Grid Electricity Distribution (NGED) have launched an ancillary service to unlock more capacity using smart technology.
The ‘MW Dispatch Service’ will deliver a new route to market for Distributed Energy Resources (DERs) – the smaller electricity generators connected to distribution networks – whilst freeing up capacity for them to connect with the network.
As a DER-specific ancillary service, it will extend the balancing options available to the ESO’s control room beyond the generators currently operating in the Balancing Mechanism (BM) thus, helping manage network constraints.
According to the collaborators, the MW Dispatch Service’ is a “more inclusive and potentially cheaper to implement service than the Balancing Mechanism.”
Supported by UKPN and NGED control rooms, the ESO will instruct the DER unit to reduce their output during periods of system constraint, granting DERs constraint payments for the electricity they would have otherwise generated.
This cost savings are also hoped to pass on to consumers by providing a cheaper alternative to the BM, helping to reduce costs.
“Through the MW Dispatch project, we are providing the ESO with unparalleled visibility of new DERs connecting to our network, and the ability to manage constraints on the transmission network in a more efficient manner,” said Ben Godfrey, director of DSO at National Grid Electricity Distribution.
“This, alongside wider industry reform work, will enable us to accelerate over 2GW of additional generation connection offers in the South West. This collaborative approach, and the underlying capabilities are now being scaled up across the UK to help us alleviate wider constraints at the transmission/distribution boundary and connect more renewable generation to the network.”
UKPN and NGED are currently in the process of signing up participants for this service which is set to begin operation over the coming months.
“Collaboration between networks and the ESO has been fundamental to enabling this new service. It means over 1GW of generation and batteries can connect to our network faster and at lower cost because we’ve come together to tackle this challenge head-on and benefit our customers in the South Eastern region,” added Sotiris Georgiopoulos, director of DSO at UK Power Networks.
“The success of this collaboration is down to data sharing and coordination protocols that we have all worked on together, and also through the Electricity Networks Association’s Open Networks project. It’s an important step to see that our joint work being deployed and delivering benefits to customers”
The service will involve developing technical capabilities as part of the new Distribution System Operator (DSO) function, enabling distribution companies to coordinate and exchange data with the ESO while simultaneously dispatching the generators when there is a constraint in the transmission network.
Earlier this year UKPN’s independent DSO – launched in May 2023 – published its ‘flexibility first’ report which outlined the flexibility option currently being considered.
