The electricity system operator is to run a two-year trial of frequency response auctions.

National Grid said that it will begin the experiment in June 2019.

Auctions will be held each Friday morning, with results published early in the afternoon and the first delivery window opening at 11pm.

The operator will publish its requirements during the week before the auction.

New platform

Auctions will cover high-frequency dynamic response, low-frequency dynamic response, high-frequency static response, and low-frequency static response.

“To minimise barriers to entry of new technology types and maximise the level of competition, the auction will need to procure frequency response products both separately and together, linked in time and also separately,” the letter explained.

“This level of functional design will require the creation of a ‘clearing engine’ using a new complex algorithm, rather than being able to use an existing algorithm and trading platform.”

> Read National Grid's letter to potential suppliers