Elexon bids to allow small asset owners to provide balancing services

Elexon is proposing changes to the balancing and settlement code (BSC) to allow asset meters to be used for settlement purposes.

Asset meters, which measure electricity flows to or from embedded generators, demand-side response (DSR) providers or owners of electric vehicle (EV) charging points, are currently not recognised by the BSC.

This is because only data on electricity from a meter at the boundary point for balancing services – where complex, multi-use sites connect to a distribution network – can be used for settlement.

The P375 modification, raised by DSR provider Flexitricity, would see data from asset meters fitted behind the boundary being submitted into settlement which, Elexon believes, would give distribution system operators (DSOs) more accurate control of their networks and enable them to dispatch assets with more efficiency.

Mark Bygraves, Elexon’s chief executive, said: “There is limited visibility of the actions of smaller asset owners at multi-use sites. We believe that including data from individual asset meters in settlement will fill that void, by providing granular information on their activity.

“The P375 proposals could have a transformative effect on the energy system. They offer market participants new ways to engage in the energy market. The changes could also assist developers of heat networks as part of a wider integrated energy system.

“If the proposals are approved by Ofgem they will ensure that the BSC is ahead of the game. We need the BSC to facilitate the changes that support innovation and initiatives to meet the net zero challenge.”

Alastair Martin, Flexitricity’s founder and chief strategy officer, said: “Balancing mechanism wider access using the virtual lead party model unlocked the balancing mechanism for all energy users.  But it’s asset metering that really pushes the door wide open.

“With P375, we can provide value for the asset that’s actually delivering the balancing service, while letting energy users get on with normal life.  This applies all the way from industrial sites – like water treatment works and pumping stations – all the way to domestic consumers with EV chargers and smart heating controls.

“Open participation means better balancing, a more economic energy system and the best use being made of the greenest energy available. That’s why P375 starts us on the road to net zero.”

The final recommendation to Ofgem on whether to approve the proposals is likely to be made at the BSC Panel’s December 2020 meeting. If they are approved by the regulator, they are scheduled to come into force in the first quarter of 2022.