Aurora’s Flexibility Market Summary provide a concise monthly review of recent events in key markets for flexible technologies. The initial focus is on the balancing mechanism and firm frequency response (FFR) markets with more ancillary services markets to be added over time.
Highlights of the October 2019 report include:
- 74 dynamic bids were accepted in October for November. Delivery rose 162% to £14.11/MW/h, the highest accepted price in the last 18 months.
- The spike in average price was due to a number of particularly high bids in the 3-7pm window, with the highest accepted price at £60.42/MW/h for Npower. This was due to the combination of a high requirement from National Grid (363 MW primary requirement for 3-7pm compared to 119 MW in the previous month) and the beginning of the winter period where various evening peak benefits or costs apply. These resulted in high opportunity costs for FFR participation and so prices rose.
- In addition to Npower, contracts above £10/MW/h were awarded to Flexitricity, EDF, Limjuemp, Centrica and First Hydro. First Hydro’s Dinorwig plant gained a contract for 170 MW at £26/MW/h for the 3-7pm EFA block, its first month of FFR delivery since its long-term contract ended in March.
- No static volume was required by National Grid this month and so none was procured.
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