Limejump enters the UK Balancing Mechanism Market increasing competition with the Big 6 and other major power plants
Smaller generators, Demand Response Sites and Battery Storage can now access the National Grid Balancing Mechanism market through Limejump’s advanced technology.
Renewable and distributed energy generators can for the first time compete with the Big 6 and other large power plants in the National Grid Balancing Mechanism thanks to energy technology innovator Limejump.
Limejump has entered the Balancing Mechanism via its uniquely created Virtual Power Plant (VPP), the first Aggregated Unit admitted into the market. Having received dispensation from OFGEM to make this sector-transforming move Limejump’s VPP has now gone live on the Balancing Mechanism Market.
Limejump received its electricity supply license in 2015 and has since built a managed portfolio of renewable generation sites, batteries and demand response assets.
So far, the Balancing Mechanism has largely been the domain of large power plants and specific distributed single large sites that have a generation license. National Grid’s drive for wider access to the Balancing Mechanism has allowed Limejump to enable smaller generators, such as wind, solar, batteries and industrial electricity user to fully compete in the entire balancing services market worth £1 billion per year.
Erik Nygard, CEO of Limejump, said: “Limejump’s entry into the Balancing Mechanism is another step in our efforts to ‘disrupt’ the conventional operations of the UK energy market. This move means that a farmer with a solar installation or a supermarket with excess energy from its cooling units will be on the same footing as a giant power station. Just as importantly, our move increases competition, enabling a cleaner, more sustainable energy future that benefits both the environment and the end consumer.”
Limejump’s move has been made possible by its innovative technology platform which uses big data analytics, trading ability and machine learning to connect distributed storage or generation assets, such as batteries, solar, wind, CHP and flexible demand assets (such as pumps and lighting) to act as if they were one large power station. Connecting to a communication platform developed by Siemens, Limejump is able to provide National Grid with a single, flexible energy source that helps balance the energy system.
Limejump is a new breed of energy supplier. It manages one of the world’s largest battery portfolios (150MWs) as well as a large amount of renewable and distributed generation assets, providing a range of energy services such as Power Purchase Agreements and Dynamic Frequency Response, supporting access to a variety of markets including Wholesale and Ancillary. DNOs, investors, developers and other suppliers such as Anesco, Eelpower and ESB are among Limejump’s customers that will benefit from the entry of the VPP into the Balancing Mechanism. Advances in battery technology, from companies such as Tesla, are allowing smaller generators and companies with excess energy, to store it and resell it through market operators like Limejump.
This entry into the Balancing Mechanism also supports the transition to TERRE (Trans European Replacement Reserves Exchange) which will further lead toward establishing a pan-European market for balancing energy in 2019.
Erik Nygard added: “This is an important milestone in opening up the UK energy market. We have shown how sustainable, dynamic and distributed assets can power the UK as consistently and efficiently as large power plants. The support we have received from National Grid has made this next step possible and ensures distributed asset values can be maximised in multiple markets. It is a huge step for Limejump, validating our business model and Virtual Power Plant technology while paving the way for more innovation and competition within the UK energy industry.”