Source · Select Committees · Business and Trade Committee
Recommendation 52
52
Acknowledged
Paragraph: 216
Require National Grid ESO to provide clearer signals on future energy constraint location, value, duration.
Recommendation
Despite welcome progress by National Grid ESO to develop and implement new initiatives to harness flexibility, there is still more to be done to ensure that clear signals are provided regarding the location, duration and value of future constraints. We recommend that National Grid ESO sends stronger identifying when and where constraints are likely to occur, their value and duration.
Government Response Summary
The ESO understands the importance of integrating low carbon technologies and will consider how markets must evolve to facilitate more low-carbon technologies contributing to system balancing and stability, while actively monitoring the carbon intensity of the Balancing Mechanism.
Paragraph Reference:
216
Government Response
Acknowledged
HM Government
Acknowledged
119. [Response provided by ESO] The Electricity System Operator procures services to balance demand and supply and to ensure the security and quality of electricity supply across Britain’s transmission system. The Balancing Mechanism is the ESO’s primary tool to balance supply and demand on GB’s network and is managed second-by-second. 120. The ESO understands how important it is to integrate low carbon technologies into the Balancing Mechanism and across our wider ancillary service markets. To decide on bids and offers to accept, the ESO reviews the technical parameters of all participants to see what they are physically capable of providing, to ensure the system is stable and safe. The ESO always considers how competitively priced the bids are, but sometimes must consider other operational and locational factors in making a selection. The ESO’s current licence states it cannot take technology or fuel type into consideration in decision making. 121. As the ESO moves towards its 2025 target of operating a net zero electricity system for short periods of time, the ESO will consider how our markets must evolve to facilitate more low-carbon technologies contributing to system balancing and stability. At present, the carbon intensity of the Balancing Mechanism is actively monitored by the ESO, and these figures are published on its data portal.