National Grid Electricity System Operator (ESO) has released its 2023-25 Mid-Scheme Report, detailing its performance in the initial year of the second business plan (BP2) period of RIIO-2, spanning from April 2023 to March 2024.

The report highlights efforts to mitigate the impact of external factors such as the Covid-19 pandemic, Russia’s invasion of Ukraine and escalating energy prices on their balancing costs strategy.

Despite challenges, the report underscores a reduction in balancing costs to £2.4 billion in BP2, compared to £3.1 billion and £3.8 billion in the preceding years of BP1, attributed to falling wholesale prices and strategic initiatives implemented during BP1.

Craig Dyke, ESO’s Director of System Operations, said: “We have continued to operate a safe and reliable supply of electricity to Great Britain over the last 12 months and are delivering against our key BP2 commitments.

“However, we do recognise the need to continue to remove barriers to facilitate smaller-scale assets entering our markets.”

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Article source: https://www.energylivenews.com/2024/05/20/uk-grid-balancing-costs-drop-by-1-4bn/