National Grid: Should it use more balancing services?

National Grid is asking the industry whether it should continue to use additional balancing tools for winters 2016/17 and 2017/18. They help manage with uncertainty around electricity margins, i.e the amount […]

Register now!

By admin

National Grid is asking the industry whether it should continue to use additional balancing tools for winters 2016/17 and 2017/18.

They help manage with uncertainty around electricity margins, i.e the amount available between supply and demand.

Prior to winter 2014/15, National Grid introduced Supplemental Balancing Reserve and Demand Side Balancing Reserve to help balance a tighter electricity system.

They were in place last winter and 2.56GW has been bought for winter 2015/16, taking the margin from 1.2% to 5.1%.

The firm has launched a consultation for feedback, which comes as Ofgem warned the outlook for margin in 2016/17 is “uncertain”.

National Grid uses different winter scenarios to understand what the future energy picture may look like.

The results show a wide range of outcomes which is why it is making the decision to consult on balancing services.

Claire Spedding, Balancing Services Manager at National Grid said: “There are some uncertainties around the supply and demand outlook prior to the capacity market coming into force in 2018/19.

“Given the uncertainty over whether there will be sufficient capacity margins available in the electricity market for balancing purposes, it is prudent that we explore options that help us do our job in transporting Britain’s energy.”

The balancing services consultation will close on 14th August and an update will be announced in the autumn.