Exploring the Balancing Mechanism with Claire Dykta (Head of Markets at ESO)

Nov 2, 2023

Claire Dykta, Head of Markets at the Electricity System Operator (ESO), sheds light on the intricate workings of the Balancing Mechanism. She discusses the upcoming Open Balancing Platform, which aims to streamline asset management. Claire also covers the impact of high renewables on system stability, the vital role of batteries in frequency response, and the importance of measuring skip rates. With insights on market design and investor confidence, she emphasizes the need for adaptability in the evolving energy landscape.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

How The Balancing Mechanism Operates

The Balancing Mechanism is ESO's operational tool used after wholesale gate closure to fine-tune supply and demand second-by-second.
ESO stacks bids and offers to select the cheapest or most suitable actions to keep the system balanced.

INSIGHT

High Renewables Change The Problem Set

A high-renewable system creates new problems beyond simple megawatt shortfalls, like lower inertia and voltage issues.
The control room must solve more complex, non-megawatt problems as the grid decarbonizes.

ANECDOTE

Train Ticket Analogy For Transmission Constraints

Claire used a train-ticket analogy to explain regional congestion: excess Scottish wind may need to be paid down at source.
Then ESO must procure generation elsewhere (e.g., in England) to replace the curtailed megawatts.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

The Balancing Mechanism is the Electricity System Operator’s (or ‘ESO’s’) main tool to make sure that supply meets demand every second of the day.

Whether you are new to the Balancing Mechanism or are looking to find out more about how the ESO navigates this complicated service - this episode provides a comprehensive look at the workings of the BM. Over the course of the conversation, guest host Ed Porter talks to ESO’s Head of Markets - Claire Dykta, discuss:

An overview of the balancing mechanism, where it fits in the suite of available markets and how ESO manages the deployment of balancing mechanism units (BMUs).

Insight into how the coming Open Balancing Platform (OBP) will make the scheduling and dispatch of assets more streamlined.

How the fifteen-minute rule could change under coming updates.

How ESO are ensuring route to market is fair in order to maintain confidence in the UK market for investors.

Skip rates and what ESO is doing to clearly define them and reduce them where possible.

Related Articles

Behind the Balancing and Settlement Code with Aditi Tulpule (Elexon)

Keeping the lights on with Faye Relton and Neil Morgans (National Grid ESO)

About our guest

ESO is the the Electricity System Operator for Great Britain, making sure that Great Britain has the essential energy it needs by ensuring supply meets demand every second of every day. They are responsible for moving high voltage electricity from where it’s generated, through the energy system. For more information about what ESO do, head to their website.

About Modo Energy

Modo Energy provides benchmarking, forecasts, data, and insights for new energy assets - all in one place.

Built for analysts, Modo helps the owners, operators, builders, and financers of battery energy storage solutions understand the market - and make the most out of their assets. Modo’s paid plans serve more than 80% of battery storage owners and operators in Great Britain.

To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. If you want to peek behind the curtain for a glimpse of our day-to-day life in the Modo office(s), check us out on Instagram.