The National Grid Electricity System Operator (ESO) has announced measures to address inaccuracies in Physical Notifications (PNs) submitted by wind generators.
This initiative aims to reduce balancing costs and improve the security of the electricity system.
Since October 2023, the ESO has been investigating the extent of the inaccuracies in the information submitted for balancing purposes.
The ESO communicated with market participants in the Balancing Mechanism to outline their plan to collaborate on resolving these issues.
The letter highlighted the ongoing challenges related to inaccurate PNs submitted by Balancing Mechanism Units (BMUs) and emphasised the necessity of accurate submissions.
Ofgem has previously underscored the importance of accurate PNs.
The ESO has kept Ofgem informed about their concerns and efforts.
Of the four identified inaccuracies requiring resolution, PN inaccuracy is a top priority due to its impact on costs and system security.
Inaccurate PNs can lead to higher balancing costs as BMUs receive payments based on deviations from their PNs when a Bid-Offer-Acceptance is issued.
Accurate PNs also assist in effectively balancing the system by providing a predicted schedule of generation for BMUs.
The issue of inaccurate PNs has been persistent and increasing in severity and cost, the ESO has said.
The ESO now plans to take additional steps to achieve improvements in the accuracy of generators’ submissions.
The ESO’s two-step process to improve PN accuracy involves publishing a Draft Guidance Note followed by a consultation period and then issuing a Final Guidance Note.
A six-month monitoring period will commence, during which the ESO will host workshops to support the industry in improving PN accuracy.
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