Energy regulator Ofgem has approved BSC Modification P375 a ground-breaking change to the Balancing and Settlement Code (BSC) which will allow individual Asset Meters located ‘behind the boundary point’ to be used for Settlement purposes.
What are Asset Meters?
Asset Meters can record electricity flows to (or from) assets including those owned by embedded generators, demand-side response (DSR) providers, or owners of electric vehicle charging points.
Currently data from meters behind the boundary point is not recognised in Settlement as only data on electricity flows from the boundary point can be used.
What is the boundary point?
The boundary point is the point at which complex, multi-use sites connect to a distribution network.
Elexon will implement the P375 changes for Asset Meters
Modification P375 ‘Metering behind the Boundary Point’ was approved by Ofgem on 24 February. It will allow data from Asset Meters fitted at units behind the boundary point to be used in Settlement, from 30 June 2022.
To facilitate the solution Elexon will implement extensive changes to the BSC Central Systems and manage the subsequent Settlement arrangements. In order to benefit from the changes, BSC Parties will need to use Asset Meters which meet the specifications defined in the newly created Code of Practice 11 (CoP11).
P375 was raised by Flexitricity – a DSR provider and a new Virtual Lead Party (VLP). The VLP role was created following Elexon’s implementation of BSC Modification P344 ‘Wider Access’ in December 2019. It allows independent aggregators to trade in the Balancing Mechanism.
Views from Elexon’s CEO
Mark Bygraves, Elexon Chief Executive, said:
“Currently we do not have much visibility of the actions of smaller asset owners such as storage, and renewable generation at multi-use sites. The introduction of P375 to the BSC Settlement arrangements will change that, as fitting individual Asset Meters to these units will provide detailed information on their activity.
“It is good news that Ofgem has approved this ground-breaking change as we believe it is an important step forward for the energy transition and progress to net zero. Recognising the role smaller assets can play in keeping the system in balance can improve the business case for building such assets, and give further support to innovators.”
Benefits of P375 for distribution system operators
As well as giving smaller asset owners more opportunities to provide balancing services, P375 has other benefits. The reforms would give Distribution System Operators (DSOs) more accurate control of their networks and enable them to dispatch assets with more efficiency. The changes could also assist developers of heat networks as part of a wider integrated energy system.
Flexitricity will make ‘heavy use’ of P375 to support flexible energy sources
Dr Alastair Martin, Chief Strategy Officer at Flexitricity, said:
“Demand-side flexibility is always about electricity customers helping balance the grid while getting on with the day job. Finally, P375 allows us to separate out these different activities and ensure Settlement is accurate.
“P375 achieves much more than that, however. At Flexitricity we’re planning to make heavy use of it to bring new, flexible energy resources – home heating systems and electric vehicle charging – right into the heart of the electricity system. That’s how we can help deliver net zero by putting green energy to work.”
Views from Lord Redesdale, Decentralised Energy Trading Association
Lord Rupert Redesdale, Policy Manager for the Decentralised Energy Trading Association, said:
“The introduction of P375 will be a game changer for battery storage, the income from trading stored electricity will make the installation of batteries really attractive. P375, a humble meter, will be the keystone in eventually allowing all battery owners to profit from balancing the grid, which will allow a smarter greener grid to be developed.”
Extra data on performance of smaller assets will be available
The implementation of P375 will allow for more openly accessible electricity data to be made available on our Balancing Mechanism Reporting Service (BMRS) data publishing platform. Such information could help innovators to develop new products and services. This is a further step forward for making more energy data available, in line with the Energy Data Task Force recommendations and aligned to the recently approved BSC Modification P398.
Code of Practice for Asset Meters
To support implementation of P375, Elexon has created a new metering Code of Practice (CoP11) to set standards for the accuracy of Asset Meters. CoP11 is available in the ‘report phase’ section of the P375 webpage.