London-based energy technology company Electron has been awarded funding by the UK’s Department for Business, Energy & Industrial Strategy (BEIS) to lead a consortium of leading UK energy companies in developing a multi-product flexibility exchange, named TraDER.
Click to learn more: Jo-Jo Hubbard of Electron explains blockchain
TraDER brings together Community Energy Scotland, CGI, EDF in the UK, Elexon, Energy Systems Catapult, Kaluza (part of the OVO Group) and Scottish and Southern Electricity Networks, alongside other key players in the emerging flexibility arena including Downing LLP and United Utilities.
The project aims to deliver a single access point to multiple energy services such as balancing, stability and network capacity, making it quicker and simpler for assets to provide these services. The market will go live first on the Orkney islands, where renewable energy generation often exceeds grid capacity, creating a huge opportunity for flexibility.
“We want to make it easier for distributed energy resources to play their full role in lowering the cost and carbon intensity of managing the grid,” said Joanna Hubbard, Electron’s CEO and Co-Founder.
“This starts with delivering the world’s first marketplace for network capacity: a market in which renewable generators can pay flexible assets to make space for them on an increasingly congested grid. This means we can bring more low cost, low carbon generation into the system and create new revenue opportunities for clean technology operators.”
Hubbard added: “Longer term, TraDER also presents us with an opportunity to bring together previous work on aligning and simplifying asset registration processes and coordinating flexibility markets through price signals. We believe that these are the key enablers for transparent, liquid markets that will support the transition to net zero.”
The UK Minister for Energy and Clean Growth, Kwasi Kwarteng, said: “If we are to end our contribution to climate change by 2050, it is vital that we explore innovative methods to integrate low carbon sources into our energy system. Building an online marketplace where households and businesses can trade flexibility will make our system more efficient and reduce energy bills.”
TraDER will also draw on Kaluza’s market expertise in residential flexibility and their intelligent energy platform, as well as the substantial trading experience and consumer engagement initiatives of Kaluza and EDF.
“To build the smart zero carbon grid of the future we need a trading platform that creates opportunities and unlocks the true potential of flexible technologies,” said Conor Maher-McWilliams, Head of Flexibility at Kaluza.
“Today’s infrastructure fails to grasp the full value at its fingertips” continued Maher-McWilliams. “Through an intelligent energy platform, connected devices in the home are already providing flexibility to the grid and saving customers money off their energy bills. However, this new flexibility will be able to go so much further if traded within a co-ordinated, agile system that responds in real time to the grid’s needs.”