In what it says is a first for the UK, Northern Powergrid has announced that it is to procure flexibility through an e-auction.
Current+ explained that the scheme, Restore Flexibility, will aim to manage the network in the event of unplanned outages. Customers will be able to shift consumption or have their generation assets flexed following instruction from Northern Powergrid to balance the grid and avoid outages. Customers will be paid a set price per MWh, with this decided on during the e-auction process.
A Dynamic Purchasing System will be used with each competition concluded with a reverse Dutch e-auction to procure flexibility from the customer-led assets.
Northern Powergrid’s commercial development manager Andrew McKenna said: “On the occasion where utilising customer flexibility is inherently cheaper than the counter factual action, we will look to take this action meaning that not only do customers with assets benefit from a new revenue stream, but every single customer benefits financially from the DNO achieving the same outcome through a more cost effective method.”