Michael Phelan, Chief Executive at GridBeyond, formerly Endeco Technologies, comments on the results of the recent National Grid tender for Firm Frequency Response (FFR)
“Following the June 2018 FFR tender round, there are discussions and commentary referencing market saturation and the possibility of clearing prices dropping further. Whilst average prices in the Dynamic FFR market have fallen in 2018, the average prices for Dynamic FFR delivery up to September 2019 have remained consistent.
“It is significant that Dynamic and Static FFR were not procured in any quantity for delivery over Summer 2019 (from April to September 2019), despite National Grid informing the market of its requirement for at least 250 MW for overnight and 60 MW during the day for this period prior to the tender.
“National Grid is scheduled to provide feedback on the tender to FFR market participants on Friday, 22nd June. In the meantime, we can only surmise why National Grid decided to hold back with the procurement of the required FFR volumes for Summer 2019.
“Our preliminary evaluation leads us to think that National Grid might award contracts for FFR capacity for Summer 2019 in two of the new FFR service categories.”
“Our preliminary evaluation leads us to think that National Grid might award contracts for FFR capacity for Summer 2019 in two of the new FFR service categories. These were recently announced as part of their SNAPS initiative and are expected to deliver from December 2018 onwards.
“The new range of services will include Dynamic Balancing, Dynamic Containment and Static Activation. National Grid will also introduce weekly FFR auctions, with the procurement time being significantly closer to the delivery time.
“National Grid has not yet provided any official communication on the procurement of FFR services for Summer 2019, though we believe it is likely that National Grid has decided to take more time to review and test their new services and procure for them in due course to acquire the volume required.”
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