Reform of ESO’s ancillary service and balancing markets is crucial if we are to ensure that we can operate a zero carbon electricity system by 2025, and fully decarbonise by 2035. These reforms will also help to lower costs to end-consumers as they are designed to make our markets more efficient, accessible and liquid.
We also understand that our ancillary services and balancing markets are an increasingly important revenue stream for market participants. It’s therefore imperative that we provide a clear view of how we see these markets developing.
This is the aim of the ESO Markets Roadmap. Here, we outline what we are doing to reform ESO markets and why we are doing it; to give the market the ability to build investment cases and all stakeholders the confidence that we are making the right design decisions.
The roadmap sets out our market design objectives, principles and plans to reform and evolve our markets.
It details our vision for response, reserve, thermal, voltage, stability, and restoration markets as well as the Balancing Mechanism.
Markets Design Assessment
To complement our Markets Roadmap for 2023, we are publishing alongside an assessment of the design of our markets. This has been conducted by an independent party, LCP Delta, using our own market design framework, to assess how we are faring against our market design objectives of efficient design, efficient dispatch and value for money.
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We host regular events covering a range of topics. These have included updates on our balancing services market reforms, major changes to industry codes and frameworks and our views on fundamental market reform needed to enable net zero.
Our Operability Strategy Report explains the challenges we face maintaining and developing our electricity system and how we are addressing them.
The Bridging the Gap to net zero programme takes a closer look at what needs to be done to reach the UK’s 2050 net zero target.
The SPCM aims to enhance our understanding of both the technical capabilities and the commercial factors (investment and operational) for existing and future providers of services, located across the network.
As the energy landscape evolves, so must we. Our ambition is to work with industry and we intend to regularly update the roadmap based on feedback from our stakeholders.
If you're interested in attending future Market Forums and receiving updates on our progress please subscribe to our Markets events mailing list.
If you’d like to work with us and help inform our future plans, please email us.