Piclo, the London-based marketplace for flexibility services, has begun the first flexible electricity trades into National Grid Electricity Distribution’s (NGED) local flexibility market with its partner equiwatt.
The trades were made thanks to the company’s partnership with NGED, the distribution system operator (DSO) of National Grid via Piclo’s Piclo Max platform, which grants flexible asset owners increased market access. Piclo’s platform aims to “solve network constraints” and demonstrates how innovative new platforms can unlock additional capacity for the energy grid.
The initiative allows flexibility service providers (FSPs) to trade in NGED’s market more easily; the Piclo Max platform is designed to remove barriers to entry for these providers, granting them access to multiple flexibility markets through a single interface rather than registering for trading directly with NGED’s Market Gateway. The partnership between Piclo and NGED offers grid-stabilising solutions Piclo claims can reduce costs and increase revenues for asset owners.
James Johnston, CEO of Piclo, commented: “This is a major win for the industry. It showcases how we can work with grid companies to help them respond more quickly to changes in electricity demand and supply, reduce their costs, and improve grid stability. At the same time, we’re empowering flexible asset owners by reducing barriers to connect and trade their electricity in multiple markets to increase their revenue.”
Expanding flexibility markets
As the UK transitions to a low-carbon economy, the need for adaptable, resilient energy solutions has become more pressing. NGED’s Head of Flexibility, Matt Watson, said: “Times are changing for electricity distribution networks. The transition to a low-carbon economy has brought about challenges as well as significant opportunities. One opportunity we’re tapping into is using market-leading systems such as Piclo to dispatch flexibility through multiple routes at the same time, meaning that more flexible power is available. The partnership with Piclo will continue for our long-term trades, which are opening soon.”
Piclo Max is well-positioned to expand its offerings to all six local flexibility markets in the UK, but the platform’s role is not limited to local markets—it also aims to enable access to the UK’s Capacity Market secondary trading, with future plans for global market expansion.
CEO Johnson Fernandes of equiwatt, one of the key players in this partnership, emphasises the benefits to smaller energy providers and households: “This achievement reflects our commitment to empowering households and small businesses to play an active role in supporting the grid and enhancing energy resilience. By working alongside innovative partners like Piclo and National Grid, we are making it easier for consumers to access and participate in these emerging flexibility markets.”