Technical changes deployed to support Project TERRE
A major milestone was reached on 29 May as the technical changes necessary to enable GB industry parties to join the central Trans-European Replacement Reserve Exchange (TERRE) platform and trade in the European electricity market was successfully deployed.
This is a technical deployment of the Settlement software needed for GB parties to trade on the TERRE platform. The TERRE functionality will not be exercised until GB participation in Project TERRE goes live, currently scheduled for October 2020.
Following the successful implementation of P344 Wider Access, which opened up the Balancing Mechanism (BM) to VLPs in December 2019, Elexon has now met the commitments to deliver TERRE and Wider Access to the BM on schedule as set out in BSC Modification P344.
Industry testing and next steps
In late April, National Grid ESO announced a delay to implementing the necessary changes to their systems that will enable industry parties in Great Britain to participate in the Project TERRE.
The delay is expected until the end of October at the earliest, and is the consequence of constraints and uncertainties owing to the COVID-19 pandemic. Elexon continues to work closely with National Grid ESO to re-plan our joint industry testing.
We will share the details with parties who have expressed interest in being involved in our testing plans. We remain committed to providing sample files over the summer to enable industry to test with us in the run-up to National Grid ESO’s go live.
About Project TERRE
Project TERRE is a major, Europe-wide programme designed to establish a new replacement reserve balancing product in participating countries.
The central TERRE platform went live on 6 January 2020. It was launched by Transmission System Operators (TSOs) from eight countries, and so far only ČEPS a.s. (Czech Republic) and Red Eléctrica de España S.A. (REE) Spain have joined.
The remaining countries will be joining in waves until 2021/22.
Those participating include Great Britain through National Grid ESO, France through its transmission system operator RTE, as well as Portugal, Poland, Switzerland and Italy.
Benefits that TERRE offers to the electricity industry
The TERRE auction is run by a central platform called Libra, which optimises the needs posted by TSOs with the bids posted by providers, taking account of interconnector constraints.
The GB TERRE solution is built on the existing BM procedures, which are being adapted to allow the demand side parties currently not allowed to participate in the BM to participate without a large number of substantial changes to the solution.
Parties will be able to offer supply to the BM and TERRE at the same time, so access to the TERRE platform will offer GB parties a new revenue stream. It is expected that it will be a lucrative opportunity for providers to add to their value stack.
Elexon’s contribution to delivering P344
Elexon is widely recognised across the industry for consistently delivering a high standard of service provision. Implementing these technical changes builds on that legacy, enabling all parties to successfully and securely trade in the new European market when National Grid ESO join the central platform later in the year.
Helping BSC Parties to join Europe’s reserve electricity market
Mark Bygraves, Chief Executive of Elexon said:
‘We continue to play a crucial role in the transitioning energy industry, and today we are delighted to have reached a significant milestone in that evolution.
By delivering changes to enable BSC parties to start operating in the European market we are continuing to make new opportunities available to parties and facilitating new energy transition processes for the wider supply of electricity across international borders.
This is a major achievement and an exciting step in the changes that we are seeing in the industry. With this important development we are also helping to ensure that the benefits of increased diversity and decentralisation in electricity supply are maximised, both for businesses and consumers’.