What does the future hold for balancing the system?

COVID-19 and ODFM has given a peek into the future and what, under normal conditions, it would be like balancing the system on a sunny day in 2025. 

On Saturday EDF helped balance the grid via Optional Downward Flexibility Management (ODFM) providing essential demand increases to help manage the excess power on the grid. EDF, as active participants in the ODFM market, offer assets to grid that either stop generating OR can absorb energy (like a battery). ODFM forms part of the complete flexibility offering that customers can access through EDF. 

At Grid’s COVID-19 update, they forecast high wind and solar output alongside the typical fall in demand that occurs on a Bank Holiday. EDF forecast a significant risk of negative prices and this was also reflected in the traded market as on Wednesday, Saturday baseload traded down to -£2/MWh; the market dropped further on Thursday trading with Saturday trading at -£6/MWh. 

Following the impact of COVID-19 on energy demand, the ESO created a new product, ODFM. The product rewards generator turn-down and demand turn-up of embedded assets not in the Balancing Mechanism. The aim is to avoid disconnection (with no payment!) of embedded generators if the system is oversupplied.

Bio

Posted by Chris Regan

Head of Energy Trading Services

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