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WPD flexibility results show increased engagement

Dan Starman Senior Consultant

Western Power Distribution (WPD) published detailed results of its latest flexibility tender on 20 April. The distribution network owner (DNO) procured 94.8MW of flexible capacity in its 2020 Cycle 1 procurement exercise, bringing its total volume of contracted flexibility to 217MW. The exercise, the fifth since the launch of its flexibility procurement in 2016, revealed increased engagement with the exercise from flexibility providers during each stage of the tender process against the 2019 Cycle 2 tendering exercise. WPD highlighted that 134 respondents had now completed its periodic indicative notice (PIN) to provide flexibility services, up 75% from the previous tender round. Of these 33 completed the pre-qualification questionnaire, an increase of 50% from the previous round. In total, ten invitation to tender (ITT) responses were received, including 88 bids providing 114MW of flexibility. While ten ITT responses were provided for the previous procurement exercise, this highlights over double the number of bids on the previous exercise, for a similar level of flexibility. The 2020 Cycle 1 exercise represented a doubling in ambition for the flexibility tendering exercise. WPD tendered for 334MW across 42 CMZs, compared to 184MW across 17 CMZs in 2019. A year previously, the DNO had tendered for 93.5MW across 12 CMZs. The majority of flexibility was contracted from unrecruited or aggregated assets (55.3MW across 75 assets). 38.9MW of procured flexibility was provided by generators, while 0.6MW was provided by a total of 43 storage and demand turn-down assets. The round highlighted the prevalence of three-year flexibility contracts (44%), with the remainder being awarded on a one-year (33%) or two-year (22%) basis. All contracts were awarded on a fixed price ...

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