On ElectronConnect, market operators can ask distributed energy resources (DERs), or assets, to provide flexibility for a given flexibility request.
The request is published per market on the platform. Flexibility service providers (FSPs) can respond by making offers (flexible volume with an associated activity and price) for each of their assets.
A merit order stack (referred to as a “stack”) selects assets in economic price order. The stack is based on the price or prices submitted by FSPs for their DERs within the relevant time window.
Offers and markets
Before the stack can be built, two things need to happen.
Defining and publishing the market(s)
First, the market operator needs to define one or more markets on ElectronConnect.
A market represents a set of trading arrangements, and includes aspects such as:
Payment structures (e.g. pay for utilisation only or pay for both availability and utilisation).
Timing and gate closure (e.g. week ahead gate closure).
Contract period (e.g. season).
Service windows (days of the week, times of the day).
Activity (e.g. demand turn-down, generation turn-up).
Location(s) (network area or constraint management zone).
Once the market operator has published those markets, the FSP can then review the ones that are available in the locations where they have assets deployed.
2. Submitting offers for those markets
The FSPs then must:
Register relevant assets on the platform
Qualify for market participation (both commercially and technically)
Submit offers per asset for the markets that they choose
Each offer is formed of:
Start time/date
Stop time/date
Forecasted output (MW, optional)
Flexibility volume (MW)
Utilisation price (£/MWh)
Availability price (£/MW/h)
Once those two activities are complete, a stack can be built by the market operator per market.
For more details on stack building methodology, read knowledge articles, "Merit order stack summary and price clearing" and "Stack Building Parameters."