Optimal coordination of active network management schemes with balancing services markets

In this insight paper:

WSP, Cornwall Insight and Complete Strategy are undertaking a Network Innovation Allowance (NIA) funded project on behalf of National Grid Electricity System Operator (NG ESO) and Western Power Distribution (WPD). The project is investigating the optimal coordination of Active Network Management (ANM) schemes on both the distribution and transmission networks with Balancing Services markets.

Active Network Management (ANM) schemes are becoming increasingly widespread on GB distribution networks, alongside the development of some schemes on the transmission network. The schemes vary in complexity and scale, but to date all have a similar purpose: to enable generation to connect to the transmission or distribution network more quickly and at lower cost by actively managing generation output to avoid breaching existing network limits, rather than undertaking network reinforcement. ANM schemes benefit consumers by minimising the costs of connecting new, often low carbon, generation, which helps to decarbonise the network and reduce costs to consumers.

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Andrew Enzor, Cornwall Insight , Senior Consultant commented

"The rapid growth of generation connecting to the distribution networks looks set to continue. Active Network Management (ANM) schemes are a cost-effective way of enabling this without breaching network limits. However, as ANM schemes become more widespread, it will be important to coordinate the schemes with services procured by National Grid ESO. Better coordination mitigates concerns around both security of supply and overall system costs, which are at risk if ESO services are counteracted by ANM schemes."