28/10/20 - In accordance with the requirements of EBGL Article 26, we are consulting on the use of Dynamic Containment as a specific product. In the previous consultation, Ofgem approved the proposal we submitted on this but it was on the condition that we held a full consultation in October. The consultation is open until 10am on 30 November. Further information can be found here.
21/10/20 - We have updated question 60 relating to the Capacity Market in the FAQ document (the document will appear in your downloads folder).
7/10/20 - Here is the link to the letter we submitted to Ofgem following the end of the EBGL consultation which includes the consultation responses from providers
1/10/20 - Today is the launch of Dynamic Containment with the first delivery from 23:00 tonight (Thursday 1 October) to 23:00 Friday 2 October. For more info, select here.
28/9/20 - The first delivery of DC will be from 23:00 Thursday 1 October to 23:00 Friday 2 October. For the soft launch, we will be be running tenders 7 days a week, procuring from 23:00-23:00. Also, there will be a grace period for ITE reports until 31 December 2020. For more info, click here.
28/9/20 cont. - Following the EBGL Article 18 consultation, Ofgem have approved the final Terms and Conditions and associated contractual documents. Alongside the Article 18 submission, NGESO also submitted an EBGL Article 26 document and a derogation related to Clean Energy Package Article 6(2), which were both approved. The final suite of documents have now been published in the tabs below.
18/9/20 - To support the DC performance monitoring data upload process, we have published the Performance Monitoring - DC Provider CSV template that is expected to be transferred to our data concentrator API by DC providers. To receive the relevant technical connectivity documents for this service, please contact: [email protected]
Soft launch of DC
Following the announcement in April on the delay to the delivery of Dynamic Containment (DC), the operational need for DC remained so we decided to take a similar delivery approach to the weekly auction trial, in learning by doing through a phased delivery. We started with a soft launch of DC in October, followed by the full delivery of the service in 2021. For more information, select here.
Dynamic Containment overview
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 ~500MW 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 500MW. 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).