Thursday 4 April 2019

National Grid ESO sets out its Forward Plan for 2019 to 2021

National Grid ESO sets out its Forward Plan for 2019 to 2021

National Grid ESO has set out its Forward Plan for 2019 to 2021 to outline how it aims to balance electricity supply and demand and manage the grid.

The Energy System Operator will legally separate from National Grid's Electricity Transmission function from April 2019, after which point it will start to operate as a separate company.

It has developed its Forward Plan for up until the start of RIIO-2 by engaging with customers and stakeholders and it suggests the publication of the plan will boost levels of accountability, transparency and engagement.

The ESO suggests its areas of focus will be ensuring reliable, secure system operation to match demand at all times, unlocking consumer value through competition, supporting the shift towards decarbonisation, driving smart innovation and developing the right people and systems for the future.

It says it plans to increase competition in existing balancing service markets and introduce competition where none exists through "a wide range of deliverables and activities, from providing more information to facilitate markets, through to simplifying and rationalising our product requirements through our roadmaps."

The company adds it is working to improve its Balancing Use of System forecasts and expects better-quality information will reduce the level of risk premium added to consumer bills to account for volatility and uncertainty.

In the plan, National Grid ESO states it is already making decisions on optimising the economic operation of the system on a daily and 'within-day' basis and commits to better identify future operability challenges through a series of proposals for how to address challenges from both technical and market perspectives.

It notes it aims to "constantly improve" energy forecasting accuracy, increase the frequency of key forecasts and publish available data and information to industry to ensure the system can be operated securely and economically, as well as work more closely with Distribution Network Operators to reduce costs.

On the subject of codes, the plan reads: "By 2025, our codes and code governance will no longer be perceived as a barrier to change.

"Code modification will work for hundreds of market participants, rather than the tens of participants for which the current process was devised."

Written by

Bruna Pinhoni

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