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STOR TR27 Market Information Report
2011
Foreword
Welcome to the TR27 Market Information Report. It was good to get feedback on the re-formatted report we
launched for TR26, and as such we have continued with the same look and feel.
In the last report we talked a lot about the changes in the STOR market, and in particular the shift in committed
STOR levels over the winter period as Non-Balancing Mechanism (NBM) STOR providers pursue other
revenue streams. This brings significant challenge to National Grid as we look to hold a strong level of
Operating Reserve at a price which still benefits consumers over the alternative actions available. Our
forecasting teams are continually reviewing these requirements, and particularly in comparison against Triad
periods, to ensure that we have a clear view on the secure and economic management of the electricity
transmission system.
Previously, we made reference to the difficulty we face in meeting the requirement during winter peaks, when
large volumes of Flexible STOR are unavailable to National Grid. We stated our desire to contract sufficient
committed volumes during winter and subsequently the greater value we placed on this. The market
responded to this, although not in the way we had intended, by lowering prices for the Premium Flexible
service. As you will see in this report, we have re-iterated our previous pricing signal by accepting all units for
the winter seasons to secure committed volume including some prices much higher than in non-winter seasons.
We would also like to make comment on the submission of all-or-nothing tenders. In assessing these tenders
we consider the total cost and total benefit across all seasons tendered for, which may result in a tender being
accepted at prices higher than other tenders for some seasons because of the extra value it provides during the
winter season. This has resulted in us accepting a year-long tender with availability of £6.50/MW, and hopefully
further enforces that good prices are there for volume which is able to be committed all year.
It is an exciting time to be involved in balancing services – and as always we look forward to your thoughts and
ideas on how we continue to develop the way we work together.
Thanks,
Nick Blair – STOR Lead, Contract Services
Pete Underhill – Senior Analyst, Market Requirements
Introduction
This market report is produced after each tender round and is designed to give existing and potential STOR
participants an overall view of the tenders received in tender round 27 (TR27 ). The report provides details of
tendered utilisation and availability prices and National Grid’s consequent forward contracted position; together
with further details on the type and dynamics of the tendered plant. For further information regarding this
product, Frequently Asked Questions, or how and when to tender please consult the STOR section found on
the National Grid Balancing Services information website:
http://www2.nationalgrid.com/uk/services/balancing-services/reserve-services/short-term-operating-reserve/
This report is under continuous review and development, if you have any comments or suggestions of
information you would like to see in future issues of this report, please contact your account manager
or email the assessment team: box.AncillaryAssessment@nationalgrid.com
Data and charts that were previously found in this report can still be found in the associated Excel file
available on the website.
STOR Market Information Report TR27
Original Published 2
nd
October 2015. Update published 30
th
October 2015 minor volume corrections