Pricing
15 Aug 2023
Shaniyaa Holness-Mckenzie

Firm Frequency Response: prices unchanged as phase-out delayed

September’s Firm Frequency Response auction results are in. So, how long has the service got left to run? What are the average prices for delivery? And who won the most valuable contracts?

September’s reference price remains unchanged as requirements stay the same

What did volumes and prices look like in the latest Tender Round (for September delivery)?

🛑 Requirements in this month's Tender Round remained the same as last month's - 200 MW.

📊 The average price of accepted contracts for September delivery is £5.42/MW/h - just £0.03 short of August’s average.

⚖️ The average price of bids into the auction was £9.47/MW/h - up from £8.32/MW/hour in last month's auction.

The phase-out of Firm Frequency Response has been extended

In case you missed it, National Grid ESO has updated its plan for the phase-out of Firm Frequency Response (and the corresponding ramp-up of Dynamic Regulation).

The ESO had previously stated that the final FFR auction would take place in September, for October delivery. And that requirements for September and October would therefore be reduced.

However, the service will now carry on - and run throughout November, too (with the final auction taking place in October).

A 1 MW bid secures the top price

Levelise secured the highest accepted price overall - £12.95/MW/h, across EFA blocks 2 through 6. The volume of the bid was 1 MW.

This is higher than last month’s top price - £8/MW/h, awarded to Anesco’s 3 MW contract for EFA blocks 5 and 6.

The highest price for EFA blocks 1 and 2 was £5.82/MW/h - for a 24-hour, 9 MW contract, awarded to Habitat.

Dynamic Containment prices drop back below Firm Frequency Response

At the beginning of July, Dynamic Containment prices overtook Firm Frequency Response prices for the first time in months (due to increased volume requirements in the low-frequency service).

By the end of the month, the average Dynamic Containment price had dropped from £12/MW/h to £9/MW/h - but this was still higher than the average Firm Frequency Response price in July.

However, in August so far, average Dynamic Containment prices have dropped below £5/MW/h. Unless those prices pick up, Firm Frequency Response will likely end up as the higher-paying service in August and September - though there’s not much to choose between the two.

Want to see what happened in previous auctions?