Intelligently controlling renewable generation
Electricity generation is becoming increasingly renewable and decentralised as energy systems across the world actively decarbonise. In the UK, renewable generation is forecasted to surpass coal and gas by 2025, according to National Grid ESO, for long periods of time at least. However, increased intermittent renewables without intelligent platforms will lead to severe imbalance issues for National Grid. Therefore, the future grid must be flexible and it must remain resilient ensuring it is balanced when the wind is and isn’t blowing.
Limejump offers its PPA customers access to renewable optimisation markets which are in place to help balance the grid at times of both high and low demand. As the energy market evolves, different mechanisms will be put in place by National Grid and Limejump will actively respond and support these new initiatives. So far, our ability to respond quickly to new markets and mechanisms was proven with the roll out of the Optional Downward Flexibility Management in 2020 and when the Balancing Mechanism was first rolled out. We will continue to work closely with the grid to help maintain a balanced and resilient grid, utilising our customers renewable generation when required.
The Balancing Mechanism (BM) is the primary market used by National Grid to balance the UK’s power supply and demand in real time. This is to respond to events including power station trips, demand surges and intermittent renewable output.
Limejump’s platform directly controls customers’ assets to bid, offer, schedule and dispatch in the BM on a minute by minute basis. Our optimisation service enables customers to participate in the BM as a way of competing against larger, polluting power plants who historically were the key players in the BM.
ODFM was first launched by National Grid in 2020. It is used over the summer period to help manage the UK’s energy system – matching supply and demand in real time. Due to the accelerated growth of the localised renewables market, National Grid needs to create an opt-in mechanism that enables them to turn down the generation from decentralised generators. ODFM is only deployed if demand is very low, requesting generators to turn their service down at short notice. ODFM saw an impressive take up last year with over 2.4GW of capacity from 170 generators signed-up and poised to respond if required by National Grid.
Limejump demonstrated early in the summer of 2020 that as an agile operator it was able to provide flexibility at short notice. It was one of the earliest to sign-up to, bid and deliver in the ODFM providing National Grid 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.
Renewable energy is pivotal to achieving net zero by 2050. By 2030 it is expected that there will be surplus renewable capacity connected to the electricity network, however, it needs to be ready for when the demand is high. In the UK, National Grid does have mechanisms in place to ensure that the grid remains balanced.
Currently, National Grid uses the Balancing Mechanism and STOR to ensure there is capacity in waiting, as well as ODFM if they need distributed generators to turn down their output. As we look to the future, National Grid has proposed two new mechanisms as part of its new Reserve Reform – Quick Reserve and Slow Reserve, both of which are currently going through the consultation process.
The Quick Reserve requires full delivery by 30 seconds with 1 minute extension for up to 20 minutes. The Slow Reserve product is proposed to be at full delivery by 15 minutes and be extendable by 1 minute increments up to 240 minutes. Limejump is supportive of the growth of distributed renewable generation growth across the UK and will continue to support National Grid in maintaining a flexible and balanced grid – renewable optimisation will play a leading role in this.
Speak to one of our experts today and learn how we can help you get the best deal for the energy you generate. A Limejump PPA enables you to concentrate on your day to day, we make the onboarding and ongoing contract management simple through our customer portal. Click the link below, fill in your details and start maximising your revenue with Limejump.