Pricing
18 Mar 2022
Alex Done

Monthly FFR - April ‘22 auction results

On 16th March 2021, National Grid Electricity System Operator (NG ESO) published the results of their latest monthly FFR tender, for delivery across April. In this article, we’ll take a look at:

  • A summary of accepted volumes and how they stack up against procurement targets.
  • Which technologies secured contracts.
  • The prices secured in the tender (including a look at who secured the most lucrative bids).

Volumes

Figure 1 (below) shows the procured and rejected dynamic FFR volumes, in addition to the ESO’s procurement targets for March and April delivery.

Figure 1 - Accepted, rejected and targeted monthly dynamic FFR volumes for tender rounds 146 (March delivery) and 147 (April delivery). Rejected volumes exclude bids rejected under rejection code 4 (i.e. bids where multiple tenders were received for the same unit).
  • Dynamic FFR procurement levels for April fell slightly relative to March, with an average procurement of 379 MW across the day (-6% on February).
  • EFA block 6 requirement was partially unfilled, falling 80 MW shy of targets - additional available capacity was rejected on grounds of exceeding price caps.

Figure 2 (below) shows February’s contracted volume by technology type.

Figure 2 - Accepted dynamic FFR volumes for tender round 147 (April delivery), split by technology type.
  • Battery energy storage systems (BESS) continue to dominate the technology mix for dynamic FFR (~90% of accepted bid volume), following BESS migration back into the service in November 2021 - more info here.
  • The remaining dynamic FFR volume was filled by DSR and mixed-fuel-type units.

Prices

Figure 3 (below) shows the range of accepted bid prices compared to the volume-weighted average accepted bid price, for both March and April delivery.

Figure 3 - Reference price (volume-weighted average accepted bid price) and price range for dynamic FFR, in 146 (March delivery) and 147 (April delivery).
  • Average FFR prices rose from last month to £16.61/MW/h (+8% on March), but have not recovered to the ~£20/MW/h experienced across December 2021-February 2022.
  • EDF secured the highest-priced contract for an individual EFA block on behalf of SWGT’s Mannington site. The bid was accepted over blocks 5 and 6 at a price of £30/MW/h for 29 MW. See table 1 (below) for more details across the rest of the EFA day.
Table 1 - Highest accepted dynamic FFR bid price (£/MW/h) per EFA block for April delivery. Note this considers only bids made for weekdays (excl. bank holidays).

Key takeaways

April FFR prices have risen from the previous month by 8%, with an average contract value in excess of £16/MW/h. With FFR prices stabilising after falling from the highs of winter 2021/2022, BESS revenues from FFR, across both March and April, are likely to fall from (their all-time high) February levels.

Procurement volumes have remained largely unchanged across EFA blocks 1-5, with service requirements static from last month. EFA 6 procurement however fell ~90MW with excess capacity rejected on grounds of exceeding price caps.

The GB frequency response markets are experiencing significant changes over the coming months, with the retirement of FFR, the conclusion of EFR contracts, and the introduction of new services. To stay up to date with the market changes, be sure to keep an eye on Phase by Modo and check in with the Modo Leaderboard to see how BESS revenues evolve (and who comes out on top).