National Grid confirms delay to TERRE European Replacement Reserve Market: Limejump comment
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 to take advantage of participating in the Balancing Mechanism and Ancillary Services should contact our Flexibility specialists at BD@limejump.com