The Implication for the ESO of 24/7 Carbon Free Energy Trading

24/7 (hourly) matching of Carbon Free Energy (CFE), is a significant change from the status quo (annual matching), enabling consumers to meaningfully reduce GHG emissions in real time. Demand and regulatory changes mean that 24/7 matching could rapidly begin at scale. It is critical for ESO to understand implications for system operation, market design and dispatch patterns of this change. The study will consider the ESO roles and interactions with system objectives including coordination of CFE instruments, treatment of CO2 emissions, and management of transmission constraints.  
Through this project the ESO will better understand the actions it can take to mitigate risks and maximise the benefits, from a system operation perspective, which arise from the development of 24/7 CFE trading. 

Benefits

ESO needs to be aware of the circumstances in which dispatch patterns will change due to 24/7 CFE trading and whether these changes will be beneficial or not for system operation. Ahead of potential implementation of such a trading scheme, ESO needs insight on the action to take (directly or through influencing the design of the scheme) to ensure optimal outcomes for system operation and consumers: this project will provide such insights.The ESO will also gain insights into the potential implications of market reforms for 24/7 CFE trading,  being discussed under the Government’s Review of Electricity Market Arrangements (REMA) i.e. national, zonal or nodal pricing; and/or centralised dispatch and scheduling.

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