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Back in from the cold: the resurrection of STOR procurement

Joe Camish Senior Analyst

On 1 April National Grid ESO commenced procuring Short Term Operating Reserve (STOR) at the day-ahead stage, reviving the procurement of the STOR service since it was halted back in December 2019. The freeze in the procurement of firm STOR contracts and the eventual move to day-ahead procurement was driven and shaped by the requirements of the EU’s Clean Energy Package (CEP). Specifically, Article 6(9), which placed an obligation on the ESO to procure the STOR product at the day-ahead stage from 1 January 2020. STOR is used by the ESO as a source of additional power when supply and demand is out of balance, typically activated after frequency response services. The ESO has outlined that the service will have a daily requirement of 1,700MW. However, the net requirement procured at the day-ahead stage will be 1,300MW, with roughly 400MW of additional firm long-term STOR already procured until 2025. The first auction took place on 31 March, and the ESO has noted that at this stage over 200 units had pre-qualified for the day-ahead service, with a combined capacity of 6.5GW. Over the opening seven days of the new service, we have seen 15 individual parties participate in the auctions (across 144 units), with daily submitted volumes averaging 2,490MW. To date, daily accepted service volumes have averaged 1,311MW, meeting the service requirement in the opening auctions. This has been largely met by Uniper, RWE and Centrica, with portfolios predominantly made up of OCGTs, such as Uniper’s Killingholme, and gas reciprocating engines. One of the major changes ...

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