Name your own price: National Grid launches next demand turn-up tender


National Grid seeks to curtail excess wind generation via Demand Turn-upNational Grid has opened the tender for this year’s summer grid balancing programme, demand turn-up, inviting suppliers to name their own price.

Companies seeking contracts for curtailing generation or using extra power when the system is over-supplied must sign a framework agreement by the end of this week, ahead of a tender proper later in February.

As well as extending the programme to run for longer, National Grid has also made significant changes to the requirements and payment structures in a bid to maximise participation (outlined in this article).

Additionally, providers can now effectively name their own price for utilisation payments. If it is cheaper for National Grid to take that price over the summer than use other balancing services, they will be called upon to deliver.

The system operator has also made it easier for providers to offer DTU in tandem with other balancing services.

National Grid said it anticipates peak total footroom requirements, managed via multiple services, of 3-5GW during 2017. While much of that may come from programmes other than DTU, the system operator has said it aims to “broadly” double the amount of turn up it procured in 2016, although it has not specified a set volume for this tender.

See the DTU section on National Grid’s website for tender details.

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