NESO

NESO is the electricity system operator for Great Britain. Our control room moves electricity around the country second by second to ensure that the right amount of electricity is where it’s needed, when it’s needed – always keeping supply and demand in perfect balance.
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Notices

October 1, 2024
Local Constraint Market
Local Constraint Market

Several factors such as growing renewable generation in Scotland are set to increase power transfers across the Scottish boundaries, with a corresponding forecast in thermal constraints and ultimately costs to the end consumer.
We are exploring the development of a new Local Constraint Market to access new sources of flexibility to help manage our most constrained boundaries at and above the B6 boundary

The B6 boundary separates the transmission network at the SP Transmission and National Grid Transmission interface, running roughly along the border between Scotland and England.

We’re keen to develop a market that facilitates access to new providers of flexibility and provide competition to the Balancing Mechanism – and so complementing our existing market for the majority of transmission constraint management. We see this local constraint market working alongside existing NESO and DNO approaches and providing visibility, flexibility and coordinated control through appropriate systems and processes.

LCM will play another part in NESO’s role to:

  • Ensure reliable, secure system operation to deliver electricity when customers need it.
  • Transform participation in smart and sustainable markets
  • Unlock consumer value through competition
  • Drive towards a sustainable, whole energy future

Further information from the NESO on the LCM is published here

You can find out more about Thermal Constraints here: https://www.neso.energy/news/what-thermal-constraint-management-and-why-it-important

Note: For Flexibility Service Providers who are not already an approved Ancillary Service Provider and as such are not set up in the NESO Settlements and Finance system, please complete the 'New Service Provider Form' and send to the email address referenced within the form. Further guidance for completing this form can be found here: 'New Provider Guidance Document'

Please find the consultation for more answers