BEIS awards £1.6m to project to unlock a new approach to energy trading

Scottish and Southern Electricity Networks (SSEN) is proud to be participating in the Electron-led collaboration, TraDER. This project is first of its kind and will develop a flexibility exchange that will enable generators to transact directly with flexible assets, which could fundamentally alter how customers engage with the UK’s energy system.

The UK’s energy system is changing. Previously energy was generated from a central plant and then transported to an end user. Now the proliferation of small-scale renewables and low carbon technology is creating opportunities for energy to be generated, stored, sold and used locally. These changes need to be supported by the energy system architecture, and TraDER will help understand and unlock energy trading to realise the full potential of this new energy world.

TraDER will deliver a flexibility exchange, to support the local trading of renewable energy. The exchange will allow renewables to pay flexible assets to provide grid capacity, to support low carbon generation being brought online at lower cost. For example, during a period of windy weather an owner of a wind turbine could pay a diesel generator to secure space on the grid.

The future electricity grid must be able to help multiple parties provide services simultaneously, sharing rewards and costs fairly. Current market design means procurers of flexibility cannot share pools of liquidity or the partial costs of the flexible actions that they want to schedule.

Project TraDER will tackle some of the blockages in flexibility markets, delivering a neutral marketplace that allows wider participation in the energy system. The benefits for customers are two-fold: firstly through active participation, secondly by benefitting from a cost-effective system that supports the UK’s low carbon ambitions in a secure manner.

Andrew Roper, Distribution System Operations Director at SSEN, said:

“We are delighted to be working with our partners to deliver the modern electricity grid of the future. SSEN is committed to being a neutral facilitator of the markets that are created in the transition to a smarter, flexible network. We are thrilled to participate in TraDER, unlocking new opportunities for renewables to participate in supporting energy security, and the UK’s ambitions for a net zero economy.”

An Electron-led project, TraDER will run for just under two years and project partners alongside SSEN include CGI IT UK, Community Energy Scotland, EDF Energy, Energy Systems Catapult, Elexon and Kaluza. The objective is that by the conclusion of the project, customers will be better able to engage in energy trading and offer services to System Operators.

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Van on rural road

Scottish and Southern Electricity Networks

We're responsible for maintaining the electricity networks supplying over 3.8 million homes and businesses across central southern England and north of the Central Belt of Scotland. We own one electricity transmission network and two electricity distribution networks, comprising 106,000 substations and 130,000 km of overhead lines and underground cables across one third of the UK. Our first priority is to provide a safe and reliable supply of electricity to the communities we serve in Scotland and England.

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