UK utility SmartestEnergy has announced that it has completed its first trade in Britain’s Balancing Mechanism.
The company dispatched 37 MW into the near real-time market on Wednesday having been issued a Bid Offer Acceptance by National Grid. The dispatch lasted 30 minutes at an accepted offer price of £74/MWh.
SmartestEnergy says that it is one of very few energy suppliers providing independently-owned generation assets access to the increasingly attractive Balancing Mechanism revenue stream, valuing assets close to real-time.
The Balancing Mechanism is used by National Grid ESO to balance supply and demand in real time. It has traditionally been dominated by large centralised power plants but with an increasing need for flexible capacity, it is being made more accessible to new market entrants and smaller distributed energy assets. Participants can contribute by submitting bids and offers to increase or decrease their generation or consumption.
SmartestEnergy chief executive Robert Groves said: “Flexibility is key to enabling the growth needed in renewable capacity to help achieve net-zero carbon targets and by taking part in the Balancing Mechanism, both generators and consumers can contribute to that as well as taking advantage of a valuable income stream.
“We are proud to become one of the first energy suppliers to enter our aggregated portfolio into the Balancing Mechanism. It’s a highly competitive market but we are confident that SmartestEnergy’s dedicated asset trading resource and access to the latest technology will ensure customers are able to make the most of this exciting opportunity.”
Using technology provided by Origami, SmartestEnergy monitors the availability of its customer’s flexible assets in real-time and then identifies where to take advantage of commercial opportunities in the wholesale and balancing services markets.
Origami chief executive Peter Bance said: “Following the latest development iteration of our technology platform, we are delighted to confirm that it now enables access to the Balancing Mechanism. We are pleased to be working with SmartestEnergy at this exciting time in the evolution of the GB energy market. As energy systems evolve and become more volatile and complex, power traders and energy suppliers increasingly need to access all available sources of value – powerful real-time technology is key to unlocking these opportunities.”
SmartestEnergy provides power purchase agreements to independent generators and supplies industrial and commercial businesses with certified renewable electricity. The launch into the Balancing Mechanism adds another revenue stream to SmartestEnergy’s Managed Flexibility product, enabling these customers to become more active participants in the energy system.