Testing the Project TERRE and wider Balancing Mechanism Access software
ELEXON has confirmed the arrangements for testing the software platform to allow wider access to the GB Balancing Mechanism (BM) and participation in Project TERRE.
What is Project TERRE and wider access to the Balancing Mechanism?
ELEXON is working on changes to electricity Settlement systems which will allow independent aggregators and other BSC Parties join Project TERRE (Trans-European Replacement Reserves Exchange). Project TERRE creates a European platform for trading reserve electricity with electricity transmission system operators in nine participating countries, including GB.
ELEXON is also delivering a software platform which will allow independent aggregators to participate in the BM as Virtual Lead Parties (VLPs) from the end of this year.
Previously, aggregators had to be affiliated with a licenced supplier to use the BM. Opening up the BM in this way helps progress towards a smarter energy system.
The testing arrangements
The tests will start later this month and continue through September and October. They will involve several key areas for Project TERRE and wider access to the BM including:
- Publishing bids and offers for replacement reserve (RR) and the results of RR auctions on ELEXON’s Balancing Mechanism Reporting Service
- Testing new software interfaces for the provision of information which allows ELEXON to determine the volumes of electricity delivered by secondary balancing mechanism units (SBMUs). SBMUs describes a way of grouping sites that can provide generation or demand side response from VLPs
- Changes to Settlement reports produced by ELEXON to include information about RR trades and VLP trading
Which companies can participate in the tests?
The tests are open to:
- Existing BSC Parties (All BSC Parties will be affected by changes to Settlement reports described above – whether they plan to trade in TERRE or not)
- Prospective VLPs (as they can participate in Project TERRE as well as registering for access to the BM)
- Half-Hourly electricity data aggregators (as they are required to provide additional data in relation to sites included in SBMUs)
- Third parties that provide software services to any of the above companies to manage their interfaces in Settlement
Participation is not compulsory
ELEXON wants to involve a number of participants in the tests to ensure that any issues with the new or amended software interfaces are identified and resolved. However it is not compulsory for any individual company to be involved in the testing.
If existing BSC Parties or prospective VLPs want to participate in Project TERRE, or gain access to the BM the testing is their opportunity to verify that their own IT systems and processes are compatible with the changes that ELEXON is making to its Settlement systems. ELEXON will also be testing its interfaces with National Grid ESO.
VLPs won’t need to have completed registration to join the tests, as the market entry process will run in parallel.
How to get involved and where to find out more information
We have published a document explaining the industry testing approach and strategy.
If you would like to take part in the testing please contact us at TERRE.firstname.lastname@example.org
Will the go live of Project TERRE be delayed?
Project TERRE was due to launch by December 2019. National Grid ESO has raised a derogation request with energy regulator Ofgem to delay its participation to no later than December 2020.
The request has been made because French electricity transmission system operator RTE has announced that it will not go live in December 2019, which means there will not be a market in which GB can participate.
ELEXON still intends to make wider BM access available this year, regardless of whether GB participation in TERRE is deferred.
We will continue to work closely with National Grid ESO to ensure that we play our part in enabling GB’s participation in Project TERRE on the date approved by Ofgem.
Depending on Ofgem’s decision on the derogation request, there may be an impact on industry testing timescales.