New Short-Term-Operation-Reserve Services in the UK Electricity Market

After a reserve review process and consultations with a regulator and interested market participants, national grid, which also has a role of the system operator in the UK electricity market, has decided to modify the procurement of reserve services. This means that the current Standing Reserve service arrangements will be replaced by new Short-Term Operating Reserve Tender. The implementation of these changes is planned for 1 April 2007. This paper outlines the old standing reserve services, introduces the new short-term operating reserve tender, and then investigates the reasons that have initiated these changes as well as the expected economic benefits.