The outcome of the National Grid auction for Enhanced Frequency Response (EFR) services has today been welcomed by the REA. Through the auction, the National Grid will have a capacity that will help them balance the nation’s, sometimes under stress, electricity system.
This outcome shows that new and low carbon flexible technologies can provide services traditionally provided by large, conventional plants. This kind of technical capacity has traditionally been provided by fossil fuel generation, and it enables the integration of more renewable energy, decarbonising the grid in line with the UK’s legally binding carbon targets.
The auction has procured 200MW of capacity, that will keep voltage levels in the required range and help ‘keep the lights on’ in winters. Although 200 MW was initially announced to be the target procurement capacity, 1.4GW of capacity pre-accredited for the auction, showing the market is ready to deliver these services. National Grid has indicated that the auction will result in around £200m in reduced costs.
Commenting on the news, James Court, Head of Policy and External Affairs at the REA said:
In 2012 energy storage was identified as one of eight great industries the UK could lead the world in.
“The conclusion of the EFR auction shows that storage is now ready to deliver, and with the right framework can provide vital services to UK Plc. National Grid deserve credit for kickstarting this market and the Government must now follow through with its pledge to remove barriers to the industry.
“The industry is starting to deliver on this promise, with the right support in place we can go even further.”
“It is yet another example of new technologies that can provide alternatives to Hinkley for cost effective, low carbon electricity.”