Centrica says its local energy market is now live and enabling balancing services at both transmission and distribution level.
Under the EU-funded programme, Centrica aims to build a platform that can be scaled up to simultaneously provide services at regional and national levels, potentially internationally.
The aim is to enable distributed energy resource to access national markets in a way that doesn’t conflict with local substations.
To do that, it has worked with Western Power Distribution and National Grid ESO to create a set of rules to ensure conflicting signals are avoided. The platform uses a clearing engine via Belgian firm N-Side, whose algorithms underpin matching on the European day ahead markets.
The result is a pay as cleared market-based mechanism for flex procurement by multiple parties, rather than tendering.
Auctions run from months ahead down to intraday – effectively enabling flex providers to take positions in the market.