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 week ahead basis. Moving to a day-ahead option will improve pricing for National Grid, increase flexibility and remove the need for a potential derogation required to comply with the Clean Energy Package.