National Grid ESO has announced the implementation of its new Balancing Reserve (BR) service, aimed at lowering balancing costs and enhancing system security.
The inaugural BR auction for day-ahead capacity was conducted successfully on the Enduring Auction Capability (EAC) platform, utilising the capabilities of the Single Markets Platform (SMP).
This new service streamlines the procurement of energy reserves, allowing for a day-ahead approach to meet real-time system demand.
By replacing the current on-the-day system, the BR service is poised to reduce the cost of energy reserve procurement while enhancing system security.
A cost-benefit analysis conducted in August 2023 has projected significant savings for consumers, with estimates ranging from £639 million to £821 million over the next four years.
The inaugural BR auction attracted substantial participation, with ten providers and 47 units involved, submitting over 5,500 bids.
