Energy Cross-Border Trading and Balancing Markets Forum

Who should attend?

• TSOs
• NEMOs
• Policy-makers
• Market participants
• Regulators
• Service providers

Key takeaways

• Drivers for locational procurement: Locational Procurement emerges as a solution to decrease repositioning costs due to the sterilized capacity of balancing services in Great Britain, caused by thermal constraints.
• Recommended design: Reserve and frequency response require different market designs due to differences in activation of energy: frequency response does not require modelling transmission capacity, while reserve products should explicitly incorporate the available transfer capacity between zones.
• Estimated savings: Although EAC procurement costs increase by £5.4m, a 12-zone model enables £7.3m net annual savings due to reduced repositioning costs. This amounts to 13% of the annual procurement cost for EAC products. We see the estimation as a lower bound of the savings.

Session scope

• N-SIDE’s contribution to the locational procurement of reserves for NESO.
• Drivers for locational procurement.
• The proposed market design for each product.

For more information

Contact Alberte Bouso, Carlos Dierckxsens, or Giancarlo Marzano.