Non-Balancing Mechanism-registered batteries can now take part in Quick Reserve. That means the ABSVD rules needed to change on September 3rd. This affects how different units bid into frequency response services, especially high-throughput ones like Dynamic Regulation. Here's what you need to know.
Quick Recap: What is ABSVD?
ABSVD (Applicable Balancing Services Volume Data) protects batteries delivering frequency services from facing imbalance charges for the energy they import or export.
Translation: if a battery provides a service like Dynamic Regulation High (which involves importing a lot of energy), it won’t be punished for it through imbalance costs.
Until September 3rd, 2025, this only applied to Balancing Mechanism Units (BMUs). Now, Non-BMUs are included, so they can participate in Quick Reserve without being hit with imbalance charges.
This update removes a long-standing market divide. For context on how the market was previously split, check out this article and video below.
Dynamic Regulation Low prices could be on the rise
Dynamic Regulation Low (DRL) prices increased to an average of £16.24/MW/h between September 3rd and 5th - 33% higher than the July-August average.
This is because non-BMUs won’t be paid imbalance revenue for the energy they export. As a result, they no longer outcompete BMUs for the service.
The shift was evident immediately. On September 2nd (before the ABSVD rule change), non-BMUs made up the entire cheapest 40% of bid volume. On September 3rd, the mix changed: BMUs, non-BMUs, and virtual BMUs (we’ll discuss these later) all shared space at the low end of the bid stack.