Energy MarketsFinanceGeneration

Smaller generators eligible for system restoration payments

Elexon has updated the Balancing and Settlement Code to allow smaller, non-BSC Party generators to receive payments for providing system restoration services

Elexon, the Balancing and Settlement Code (BSC) manager, has made a change allowing smaller generators connected to distribution networks to get paid for system restoration services, putting them on par with larger generators.

This change, known as BSC Modification P451 and approved by Ofgem, started on 2nd April.

Previously, the focus was mainly on larger, transmission-connected generators like thermal plants for system restoration.

However, this adjustment now includes smaller players such as wind farms, solar farms and battery energy storage systems.

They can now compete for restoration contracts starting from 2025.

The reason behind this change is to meet the government’s new Electricity System Restoration Standard (ESRS), which requires restoring 100% of Britain’s electricity demand within five days, with interim targets for regional restoration.

NGESO needs to adjust its approach accordingly, as outlined in Grid Code Modification GC0156, with a deadline for compliance by 31st December 2026.

Elexon Chief Executive Peter Stanley said: “Maintaining energy security while we move to more flexible system is essential.

“The implementation of P451 should enhance security of supply as NGESO will have a wider range of providers to choose from when tendering for restoration contractors.

“An increase in the number of providers could also deliver improved value for these services, as a result of greater competition.”

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