Local flexibility market goes live in Orkney

A local energy market that allows renewable generators to buy network capacity from flexible energy assets and thereby avoid curtailment has been gone live in Orkney.

Project TraDER (Distributed Energy Resources) is being delivered by a consortium led by Electron that also includes Community Energy Scotland, CGI, EDF, Elexon, Energy Systems Catapult, Ovo’s Kaluza and Scottish and Southern Electricity Networks.

“We believe that coordinating national price signals with local grid requirements is absolutely key to maximising the incentive for local flexibility to come online and, in turn, enabling the zero-carbon grid,” said Electron chief executive Jo-Jo Hubbard. “Moreover, the more we see negative national electricity prices, the faster we need a solution that ensures that this does not disturb grid resilience at a local level.

“We believe that this is the first multi-sided local marketplace that actually affects the physical flow of power and brings more zero carbon, zero marginal cost power online, and we are thrilled to be working with our TraDER partners and the engaged community of Orkney to make this happen.”

Conor Maher-McWilliams, head of flexibility at Kaluza, said: “Despite Orkney’s small size, this project milestone could have a profound impact on the whole of the UK’s energy system.

“Enabling community-owned turbines to keep turning – by storing their renewable energy in Kaluza- optimised heaters – means residents are heating their homes with cheaper electricity and preventing renewable energy from going to waste.

“We are excited to progress Project TraDER and demonstrate the scalability of its approach for the benefit of the wider grid as the UK transitions to a decarbonised, more flexible energy future.”

The project was awarded £1.6 million by the Department for Business, Energy and Industrial Strategy in February.