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Dynamic Containment

Please note: Given the challenges posed by COVID-19 we will be constantly reviewing our plans and several projects may be impacted. Click here to find out more.

Dynamic Containment is designed to operate post-fault, i.e. for deployment after a significant frequency deviation in order to meet our most immediate need for faster-acting frequency response.

Currently, the electricity system is experiencing lower inertia and larger, more numerous losses than ever before. Faster acting frequency response products are needed because system frequency is moving away from 50Hz more rapidly as a consequence of imbalances.

Over the next few years, the ESO aims to deliver a new suite of faster-acting frequency response services to support our operations as the electricity system is decarbonised and to ensure that these new services enable a level playing field for all technologies. Dynamic Containment is the first of our new end-state services that we will be releasing to mitigate this risk.

 

Latest News - 29 April 2020

Due to the current global uncertainty created by COVID-19, we are continually reviewing our plans as an ESO, noting that priorities will have changed for us and our stakeholders. As a result, we are no longer aiming for procurement of Dynamic Containment in June 2020. We have made this decision so we can focus on our more immediate transmission system needs and address the impacts we are experiencing from the COVID-19 pandemic. 

The latest newsletter can be viewed here (29/4/20).

Dynamic Containment (DC) is a fast-acting post-fault service to contain frequency within the statutory range of +/-0.5Hz in the event of a sudden demand or generation loss. The service delivers very quickly and proportionally to frequency but is only active when frequency moves outside of operational limits (+/- 0.2Hz).

What volumes are we going to procure?

Eventually, but not immediately, we expect to procure up to 1GW of this product in both directions. Our procurement will grow with the available market and our own system readiness, expecting ~250MW initially.

Is there a unit cap?

The unit cap is 50MW. We are eventually looking to have a diverse locational spread, so we are trying to encourage the right market behaviour for when locational mapping comes in.

Is there a volume cap?

Currently, the volume cap is expected to be around 250MW. We expect this to increase to around 1000MW in the future. This is to promote competition and increase liquidity in the frequency response market, reducing our overall balancing costs and increasing value for the consumer.

Can I stack DC with existing response and reserve?

DC cannot be stacked with existing response and reserve products during the same time period, but we intend to allow stacking with new response and reserve products introduced in the future. Generally, we would like to maximise the stacking opportunities, but it is not allowed for the same MW/MWh to be sold twice.

Is DC going to replace any response products?

Eventually yes. As we continue with the roll-out of our other new services, we will gradually procure less of the monthly-tendered FFR service, and our intention is to phase out the monthly tenders for FFR by Q4 2021/22. 

How will DC interact with other new products?

DC has been designed to meet our operational needs in coordination with two other frequency response products: Dynamic Moderation (DM) and Dynamic Regulation (DR).