SmartestEnergy complete their first trade in the Balancing Mechanism.
Having been issued a Bid Offer Acceptance (BOA) by National Grid at 9:23AM on the 23rd October, the next generation energy company dispatched 37MW into this near real-time market, this dispatch lasted 30 minutes at an accepted offer price of £74/MWh.
With significant investment SmartestEnergy has enhanced its optimisation portfolio with the addition of the Balancing Mechanism (BM). They are one of the very few energy suppliers providing independently-owned generation assets access to this increasingly attractive revenue stream, valuing assets close to real-time.
From the 23rd October, the BM is available for SmartestEnergy customers, including operators of gas peakers and batteries, wind projects for curtailment, and future plans to provide access for even smaller assets and demand response participants.
The mechanism is used by National Grid ESO to balance supply and demand in real-time. It has traditionally been dominated by large centralised power plants but with an increasing need for flexible capacity, the BM is being made more accessible to new market entrants and smaller distributed energy assets. Participants can contribute by submitting bids and offers to increase or decrease their generation or consumption.
Chief Executive Officer, Robert Groves said, “As well as accessing new revenue streams, the move into the BM means our customers will be able to make an important contribution to the UK’s net zero journey.
“Flexibility is key to enabling the growth needed in renewable capacity to help achieve net-zero carbon targets and by taking part in the Balancing Mechanism both generators and consumers can contribute to that as well as taking advantage of a valuable income stream.”
“We are proud to become one of the first energy suppliers to enter our aggregated portfolio into the Balancing Mechanism. It’s a highly competitive market but we are confident that SmartestEnergy’s dedicated asset trading resource and access to the latest technology, provided by Origami, will ensure customers are able to make the most of this exciting opportunity”, concludes Robert Groves.
Using technology provided by Origami, SmartestEnergy monitors the availability of its customers flexible assets in real-time and then identifies where to take advantage of commercial opportunities in the wholesale and balancing services markets.
Peter Bance, Chief Executive Officer of Origami said, “Following the latest development iteration of our technology platform, we are delighted to confirm that it now enables access to the Balancing Mechanism. We are pleased to be working with SmartestEnergy at this exciting time in the evolution of the GB energy market. As energy systems evolve and become more volatile and complex, power traders and energy suppliers increasingly need to access all available sources of value – powerful real-time technology is key to unlocking these opportunities.”
SmartestEnergy provides power purchase agreements to independent generators and supplies industrial and commercial businesses with certified renewable electricity. The launch into the Balancing Mechanism adds another revenue stream to SmartestEnergy’s Managed Flexibility product, enabling these customers to become more active participants in the energy system.
About SmartestEnergy:
SmartestEnergy is a next generation energy company with a unique business model built on strong customer relationships and trading expertise in the gas and power markets. As the UK’s leading purchaser of independent generation, and a licensed electricity supplier to more than 2,500 UK businesses, it is experienced in providing commercial agreements for a range of businesses across different sectors. SmartestEnergy is a wholly owned subsidiary of Marubeni, a Japanese corporation listed in the Fortune Global 500 Company (No. 130 | MARUY 718.5 JPY).
In 2018, SmartestEnergy was awarded ‘Supplier of the Year’ at the annual Energy Awards. A testament to its leading role as an independent supplier to the Industrial and Commercial (I&C) Sector. Always striving to deliver the best products and services, SmartestEnergy prides itself on its innovative arrangements, which go beyond a purely transactional relationship, to ensure it is a value adding partner. SmartestEnergy continues to work with an increasing number of parties to support competition in the UK market.
About Origami:
Origami is a leading technology platform provider to the energy market. Origami’s highly secure, scalable and versatile software platform provides remote, real-time monitoring, decision support and the ability to execute actions either financially or physically. Origami’s technology platform is architected for global deployment. Origami enables market participants to respond quickly to changes in the energy market, increase their profitability, access new revenue opportunities, improve trading positions and offer compelling differentiated solutions to their customers.
