Elexon has opened the market entry process for aggregators that want to play in the balancing market without a supply licence as well as the European balancing market, Terre, which is set to go live by the year-end.
The two markets may ultimately present significantly larger opportunities to aggregators and providers of flexibility than they have been able to access to date.
Selling flexibility into the UK balancing market has traditionally required a supply licence. National Grid and Elexon are working to change that in order to bring more parties into the Balancing Mechanism (BM).
Simultaneously, they need to ensure all parties – including smaller generators and aggregators – can access the Trans European Replacement Reserve Exchange (Terre) on an even footing.
Under the new system, aggregators can play in the BM by becoming Virtual Lead Parties, an approach intended to have less onerous requirements.
Elexon has produced guidance for companies interested in taking this route here. It provides information on where to start, the type of party or market roles available and how to achieve those requirements.
It has also produced an overview on how Terre will work for parties that want to play in the European reserve market.
The recording below covers:
- How Terre acceptances will be paid to parties
- How Terre volumes will be settled
- How non-delivery will work
- How the imbalance price is calculated
For more details on Terre and wider access to the BM, there’s now a dedicated page.