National Grid will tender two enhanced frequency response (EFR) specifications next month.
EFR will become the fastest form of frequency response, with providers delivering 100% of power output in a second or less. That is an order of magnitude faster than current primary frequency response.
For this tender, Grid has decided to create two envelopes to manage different scenarios: EFR providers will bid for contracts with a ±0.05Hz frequency insensitive band or ±0.015Hz. Providers must be able to meet a minimum delivery duration of 15 minutes.
Grid expects that the majority of providers could deliver the wider band to help balance the system when inertia and demand is low, such as in the summer.
However, the narrower band service has value all year round and becomes more valuable when inertia is high, such as during the winter peak, according to Grid.
The system operator aims to procure around 200MW in this tender round, which it believes in some scenarios could displace other primary balancing services by much more than 200MW. Grid could eventually procure a gigawatt of EFR, possibly more.
The auction is technology agnostic, but it looks likely that the majority of EFR will come from batteries.
The online tender will run from 11-15 July with bidders required to post £2k/MW per site as a bond. The minimum bid is 1MW and the maximum bid 50MW.
All bidders must have a connection agreement or offer that matches the tendered MW and that would be complete within 18 months of contract. Independent connections providers say they have noted a marked increase in enquiries as a result of the tender.
Proper construction contracts and funding arrangements must also be in place for bids to be considered, according to Grid.
Some 64 companies are prequalified to bid for the four year contracts after Grid received 74 submissions late last year. Thirty one companies/developers made their intentions public. These are:
Abbey Power Group, AES, Arenko Cleantech, BELECTRIC Solar, Camborne Energy Storage, Delta Electronics Europe, EdF Energy Renewables, Engie, Gaelectric, GBSL, Highview, Intelligent Energy Saving Company, Kinetic Traction, KiWi Power, Limejump, Low Carbon Mutual Energy (Moyle), Next Energy Capital, Open Energi, Origami Energy, Sun and Soil, PassivSystems, Peak Gen Power, Progressive Energy, Reactive Technologies, RES, RWE, Sterling Power, TGC Renewables, UK Power Networks and Vattenfall Europe Innovation.
Results of the auction will be published 26 August with services to be delivered for winter 2017/18.
National Grid held an Enhanced Frequency Response seminar last week outlining further details. See slides here.
National Grid is the principle sponsor of a report and conference The Energyst is producing on demand-side response (DSR). We need businesses’ views on demand-side response, loadshifting and whether they are investing in energy storage for the research component of the report. Please take this short survey. The report will be launched at the DSR Event on 8 September in London. There are free places for businesses. Reserve your seat here.