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Tesla becomes first trader to access balancing mechanism through new online route

National Grid Electricity System Operator (ESO) has rolled out a software interface to allow newer and smaller players to participate in the balancing mechanism through “a more simple, cost-effective, web-based route”.

The application programming interface (API) – an intermediary that enables two different software applications to talk to each other – went live in the ESO’s national control yesterday (17 September).

The API allows participants to communicate with the ESO’s systems and the balancing mechanism and provides an alternative to the fixed line communications that have traditionally been used by generators for data transfer and dispatch logging.

Tesla became the first party to take advantage the new API on Thursday, using its automated trading and control platform Autobidder to trade the 7.5MW/15MWh Holes Bay battery storage facility built by Fotowatio Renewable Ventures and Harmony Energy in Dorset. The system has already been dispatched by the ESO to help balance the power grid.

National Grid said the launch of the API marks the latest milestone in its plans to widen access to the balancing mechanisms. It has previously worked to lower the minimum threshold for balancing mechanism units from 100MW to 1MW and introduce the new role of virtual lead party that allows parties to trade aggregated fleets of assets without becoming their registered supplier.

Chief engineer and head of the ESO’s national control, Roisin Quinn, said: “As we shift away from fossil fuel generation to cleaner, decentralised power, new opportunities are emerging to diversify our energy mix and make our electricity system smarter and more flexible.

“Our wider access initiative is helping to drive that change. We’re pleased to see our latest developments go live this week, with Tesla using our new API to enable a new provider to access the balancing mechanism for the first time.

“The API will open the market to a wider range of providers and technologies, increase competition for balancing services and bring better value for consumers – and it will take us a step closer to being able to operate the grid with zero carbon by 2025.”

Harmony Energy chief executive Peter Kavanagh said: “The API creates a new opportunity to lower costs and barriers to market participation and we are excited about the role this can play in unlocking the full power of battery storage and renewable energy in achieving a decarbonized society.”

Felipe Hernandez, managing director of engineering and asset management at FRV, said: “Opening of the balancing mechanism to new participants through the new API is an exciting moment for renewable and zero carbon flexibility technologies.

“With the increasing market demand for flexibility services, continued progress on National Grid ESO reforms and technological improvements are the best way to allow the participation of new technologies in the balancing mechanism and other flexibility services.”

Tesla was granted an electricity supply license by Ofgem in June.