• 1st subsidy-free wind farm to enter the Balancing Mechanism Largest wind site addition to Limejump’s generation portfolio Energy tech company, Limejump, has been awarded the contract to trade the power output of the first subsidy-free Scottish wind farm using next-generation wind turbines at Crossdykes Wind Farm in Dumfries & Galloway, Scotland. The 46MW onshore wind farm, developed and owned by Muirhall Energy Limited and WWS Development LLP, is one of the first subsidy-free wind farms in the UK. Notably, Crossdykes is the first subsidy-free wind farm to enter the Grid Balancing Mechanism, and is the largest wind site to enter Limejump’s generation portfolio. Limejump was the first utility off-taker (in August 2018) to enter battery storage units into the Grid’s Balancing Mechanism via its tech platform – giving battery operators and distribution connected generators a new revenue opportunity. With Crossdykes, Limejump has used intelligent price management to offset risk via a “track & trade” Power Purchase Agreement (PPA). It has used market pricing information to ‘track’ the market and lock the price in at the optimum time. This methodology rewards sophisticated trading and flexibility with higher returns whilst managing the price fluctuation risk. Limejump will also enter Crossdykes into the Capacity Market. The commercial

  • Exceptional circumstances resulted in Grid issuing their first CM notice since Q4-16 (excluding the false alarm in June-17)! One week on, we’ve taken a look back to reflect on this Extraordinary occurrence for the UK energy industry. Read on to find out insights on why this happened from the LJ team. First things first – what was the notice? Below is the note issued by National Grid on Tuesday afternoon last week. What is a capacity market notice and why are they issued? A capacity market notice can be issued for 3 reasons: The System Operator gives a Demand Reduction Instruction or an Emergency Manual Disconnection Instruction to one or more DNOs An Inadequate System Margin is forecast (at least 4 hours in the future) Automatic Low Frequency Demand Disconnection takes place In this case rule 2 was satisfied and National Grid forecast the margin set out in the capacity market rules would fall below a certain threshold. In layman’s terms, this means National Grid was forecasting very little excess supply relative to demand. What do generators have to do when a Capacity Market Notice is issued? After an instruction is issued, generators holding a Capacity Market contract must be ready to generate when National Grid forecast a

  • On September 4th, National Grid Electricity System Operator (NGESO) provided clarity on the state of GB participation in the European Replacement Reserve (ERR) market being set up by the Trans-European Replacement Reserve Exchange (TERRE). GB market participants have for a while been uncertain as to whether testing of the market would resume in October after delays during COVID19 and therefore what preparations needed to be made. NGESO said on September 4th that it would not be possible to facilitate GB participation in the ERR market before the end of this year. Given this, and issues surrounding the post-Brexit/EU Transition Period, we are now faced with the bigger question of whether the EU and national parliaments will vote to allow GB to join TERRE and use the Libra platform. It is envisaged that the ERR market will bring greater opportunities to GB flexible assets able to participate in a larger European market, so the further delay is disappointing for NGESO and the participants in the GB market who have invested significant effort and resources in readiness. Limejump welcomes, however, the continued commitment of NGESO and BEIS to deliver a resolution ahead of the end of the Brexit/EU Transition Period. Meanwhile, asset owners wishing

  • This week, it’s been reported that National Grid ESO (NGESO) is to build on the existing ODFM product that was launched earlier this summer.  Greater scope for participation from distributed energy resources (small to medium generators in particular) will create a two-way benefit as it potentially increases revenue for independent asset operators and provides a more economic option for NGESO’s flexibility procurement. Limejump demonstrated earlier in the summer that as an agile operator it was able to respond quickly to the opportunity to provide flexibility at short notice.  It was one of the earliest to sign-up to and bid in the ODFM and provide NGESO with the option to turn-down solar assets for the first time.  Expansion of the product will lead to greater system resilience in the long-term. Moving away from the Sizewell B type arrangement, and creating a transparent product for a much larger pool of generators and flexibility providers, will result in important efficiencies and is consistent with the Grid’s objective to promote and facilitate competitive markets. Ultimately, we envisage a more commercialised ODFM product functioning and in use by Summer 2021.  The structure and type of procurement remains an open question as current ODFM bids are taken on a

  • A big societal shift.   That’s what National Grid’s Future Energy Scenarios (FES) are calling for to reduce carbon emissions in the energy sector and mitigate against the effects of climate change. We’d encourage any readers not yet familiar with the FES to read the 2020 FES in 5.   Until now this annual look at the approaches for decarbonising the UK energy sector has been constrained by the 80% targets. But with the 2019 legislation to reach Net Zero by 2050 enshrined in June last year – National Grid’s analysts, researchers and experts have been able to mark out clear, target meeting, scenarios. Last year, none of the four models proposed in the FES got us to Net Zero. This time – three of the four get the UK over the line. There are crystal clear trends in the 2020 FES that make it stand out from previous years: All net zero scenarios see no fossil-fuel electricity generation without Carbon Capture Usage and Storage (CCUS) to abate it. Over 90% of electricity generated will come from wind, solar, nuclear and bioenergy with CCUS by 2050. For Limejump customers (and their assets and revenues), the trend is clearly positive for battery, wind and solar. Here at

  • Panas Kalliantas, a Short-Term Trader at Limejump, discusses having to adapt and be flexible whilst balancing mechanism units and hedging excess risk for our clients. Trading from home has its challenges for everyone, but as Panas explains, we have adjusted fast and kept communication extremely high in order to execute the team strategy. Despite going from ten screens in the office, to two screens at home, Panas and the team have maintained considerable effort and constant collaboration staying 100% committed to our values as a business; challenge, innovate and deliver sustainability.

  • The start of 2020 won’t be a time period we forget in a hurry. Set against the backdrop of a worldwide pandemic and unprecedented market activity, we welcome you to our market report covering the first half of the year. Q1 and Q2 had distinctly different defining factors. Q1 saw high levels of renewables output with three named storms (Ciara, Dennis, and Jorge) occurring within quick succession. As a consequence, March brought record wind output with over 13TWh generation. As Q1 led into Q2, COVID-19 was the defining topic – and the markets were no exception as we experienced what economists call a demand shock. Coronavirus has had a profound impact on the world and the commodity markets were impacted severely. One by one, countries entered lockdown to prevent the spread of the virus, and large sections of economies virtually shut. This reduced demand for commodities, with industrial and commercial load declining and a delayed morning peak altering the residential demand shape. In this report, we explore the market these factors, and other key market developments and influences since the beginning of 2020, split by fundamentals, ancillary services, and regulation. View the full report here

  • The Week in Flexibility: Wednesday's BSAD trades make an impact before weekend demand outrun hits 500mw Each week we take a look at what's happening in the world of flexibility. Recent weeks have been dominated, first by a long run of negative pricing, and then the provision of "footroom" services to National Grid as demand shrunk to record lows with a simultaneous exceptional performance from renewables during Coronavirus Lockdown. Last week, we saw a return to a more settled flexibility market. But that doesn't mean it was without interest and our analysts were keenly watching developments to ensure we make the best of every situation for our customers. Wednesday stood out for us. The power system was oversupplied for most of the day, caused in the most part by a demand outturn below the National Grid forecast. However, rather than pushing down prices thanks to the long system, the system price remained mostly above £20/MWh. This was caused by National Grid traders executing a large volume of BSAD sell trades at £18-22/MWh. These BSAD (Balancing Services Adjustment Data) trades are equivalent to actions taken in the Balancing Mechanism (BM) but can be done for longer periods of time in the future, providing price support for

  •   Energy tech company, Limejump, has added a 20MW gas-fired peaking project, owned and developed by Ylem Energy, onto its award-winning Virtual Power Platform. In spite of the Covid-19 lockdown, Limejump’s system was made ready remotely and started to operate and trade on schedule. The gas peaker, located at an industrial site in Trafford (Greater Manchester), entered commercial operation in April. Ylem Energy is a leading specialist in flexible generation projects across the UK, and this flexible gas generation project at Trafford and Ylem’s other projects are supporting the further expansion of renewable generation in the UK. Limejump is optimising the 20MW peaking unit on a real time basis, within different traded markets including the Balancing Mechanism, aiming to make the best return on any given day. Limejump has worked with Ylem Energy since 2016, managing a number of the company’s energy assets in the UK. Ylem Energy, along with Limejump’s other customers, are utilising Limejump’s automated trading and data abilities to maximise profitability from the Trafford peaker and Ylem’s other generation assets. Working in partnership with the Ylem team, Limejump is providing an enhanced trading strategy and remote dispatch service to maximise the current and future revenue opportunities available. Catherine Newman, Chief Operating Officer