BM Start up

Who can participate?

Service Description

The BM Start-up Service gives National Grid on-the-day access to additional generation BMUs that would not otherwise have run, and which could not be made available in Balancing Mechanism timescales due to their technical characteristics and associated lead-times. The service contains two elements, BMU Start-Up and Hot Standby.

BM Start-Up

National Grid will offer BM Start-Up contractual arrangements to Generators for provision of 'energy readiness' capabilities that can be converted into timely energy utilisations, synchronised reserves or frequency response services.

Hot Standby

Following a generator’s start up preparation, it may be necessary to hold it for a period of time in a 'state of readiness' to generate at short notice. Under these circumstances, fuel will be used or energy taken to maintain this state of readiness. National Grid will offer 'hot standby' contractual terms to Generators who are able to maintain such a state of readiness and hence provide flexibility in the provision of timely energy utilisations, synchronised reserves or frequency response services.

Why is it needed?

An adequate Operating Margin is required at the day-ahead timescale, as contingent generation reserves in excess of forecast demand, to ensure that system security can be properly managed. BM Start-Up is used by National Grid in carrying out its residual balancing role to assist in ensuring sufficient plant availability on-the-day to meet demand plus reserve requirements.

Major Technical Requirements

BM Start-Up provider must:

• Have the ability to take on warmth to reduce the time taken to synchronise to within Balancing Mechanism timescales.
• Be able to maintain such a state of readiness to synchronise for an agreed period of time.

Procurement Process

BM Start Up service is procured through a bilateral commercial services agreement which facilitates the service being called on the day as and when required.

Payment

Payment Structure:

BM Start-Up Payment (£/h): is remunerated with up to three payments rates. The different payment rates are applicable at different start-up lead times to reflect the potentially different costs associated with starting up at those lead times. Providers are able to change their BM Start-up prices on a weekly basis, and there is a common price change “gate closure”  for all providers. The BM Start-up rates are intended to remunerate the preparatory costs associated with making a unit available for despatch by National Grid in BM timescales.

The BM Start-up service payment is made regardless of whether the unit proceeds to synchronisation or not, and the start and cease instructions define the period over which start-up payments will be made. It is assumed that whilst providing BM Start-up, providers can then reflect the incremental cost of energy into their BM Offer Prices. Following a BM Start-up instruction, non-delivery rules apply in cases where providers opt not to provide the service, or fail to provide the service in accordance with its terms.

Hot Standby Payment (£/h): is made to cover the cost of sustaining a state of readiness of a BM Unit.

BSAD: BM Start-Up costs that create additional reserve availability feature in the calculation of the Buy Price Price Adjustment (BPA) variable within BSAD. Hot Standby costs do not feed into BSAD.

ABSVD: Not applicable.