New service opens to market as UK Power Networks and NESO set blueprint for transmission-distribution collaboration

Distributed Energy Resources (DERs) now have streamlined access to the energy market while getting a faster connection, after a new service called MegaWatt Dispatch launched following two years of development between UK Power Networks and National Energy System Operator.

This landmark initiative is now being rolled out in the South East region, building on UK Power Networks’ Distribution System Operator’s (DSO) commitment to support a smarter, more flexible whole energy system while delivering cost savings for consumers.

A total of five sites have now joined the service and a number of sites requesting new connections, totalling 1.5 GW in energy, are eligible when they are ready to connect in an area where the electricity transmission network is limited. It is enabling new energy projects to connect to the network years sooner, powering the equivalent of more than a million homes.

Eligible energy resources can access new revenues through the transmission market by registering through the NESO’s single market platform.

Developed in partnership with NESO supported by technology partners Kyndryl and Smarter Grid Solutions, the service went live after UK Power Networks’ DSO and NESO conducted extensive operational trials with the help of generation firm AMP Clean Energy.

Addressing long-standing barriers for DERs, the service includes limiting visibility and participation in system-wide grid management. Standardisation and automation ensure that any DER connecting behind the transmission constraints in this South coast network, is eligible to participate in both transmission and distribution markets via a unified API based dispatch interface.

Offering a simpler and cheaper alternative to the existing Balancing Mechanism, the new approach helps the NESO control room in managing grid constraints, helping to reduce overall system costs. By leveraging smart technology, the MW Dispatch Service enhances grid reliability and efficiency, benefiting consumers with potential savings.

Underpinned by ground-breaking T-D data sharing agreement and advanced digital infrastructure, the MW Dispatch innovation.

Sotiris Georgiopoulos, director of UK Power Networks’ DSO said: “This new service sets out the blueprint for transmission and distribution co-ordination, unlocking faster access to the national transmission network. Collaborating as an industry is the only way we can enable the energy transition whilst keeping costs down for customers.”

Keith Parker, MW Dispatch product manager at NESO said: "The launch of the MW Dispatch Service marks a significant milestone in our efforts to create a more resilient and efficient energy system.

“By integrating distributed energy resource visibility into the transmission network, we are not only enhancing grid reliability but also driving innovation and cost reductions across the energy sector.

Caspar Ruane, head of Asset Management (Grid Flexibility), AMP Clean Energy said: "This innovative collaboration with UK Power Networks and NESO empowers distributed energy resources like ours to play an active role in addressing transmission constraints, while unlocking new revenue opportunities and delivering tangible cost savings to consumers. It’s a win for sustainability, efficiency, and energy market access."

Visit MW Dispatch - UKPN DSO for further details, or ask about participating in the new service.

 

Published 24/03/2025

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Distributed Energy Resources now have streamlined access to the energy market

This landmark initiative is now being rolled out in the South East region, building on UK Power Networks’ Distribution System Operator’s (DSO) commitment to support a smarter, more flexible whole energy system while delivering cost savings for consumers.

A total of five sites have now joined the service and a number of sites requesting new connections, totalling 1.5 GW in energy, are eligible when they are ready to connect in an area where the electricity transmission network is limited. It is enabling new energy projects to connect to the network years sooner, powering the equivalent of more than a million homes.

Eligible energy resources can access new revenues through the transmission market by registering through the NESO’s single market platform.

Developed in partnership with NESO supported by technology partners Kyndryl and Smarter Grid Solutions, the service went live after UK Power Networks’ DSO and NESO conducted extensive operational trials with the help of generation firm AMP Clean Energy.

Addressing long-standing barriers for DERs, the service includes limiting visibility and participation in system-wide grid management. Standardisation and automation ensure that any DER connecting behind the transmission constraints in this South coast network, is eligible to participate in both transmission and distribution markets via a unified API based dispatch interface.

Offering a simpler and cheaper alternative to the existing Balancing Mechanism, the new approach helps the NESO control room in managing grid constraints, helping to reduce overall system costs. By leveraging smart technology, the MW Dispatch Service enhances grid reliability and efficiency, benefiting consumers with potential savings.

Underpinned by ground-breaking T-D data sharing agreement and advanced digital infrastructure, the MW Dispatch innovation.

Sotiris Georgiopoulos, director of UK Power Networks’ DSO said: “This new service sets out the blueprint for transmission and distribution co-ordination, unlocking faster access to the national transmission network. Collaborating as an industry is the only way we can enable the energy transition whilst keeping costs down for customers.”

Keith Parker, MW Dispatch product manager at NESO said: "The launch of the MW Dispatch Service marks a significant milestone in our efforts to create a more resilient and efficient energy system.

“By integrating distributed energy resource visibility into the transmission network, we are not only enhancing grid reliability but also driving innovation and cost reductions across the energy sector.

Caspar Ruane, head of Asset Management (Grid Flexibility), AMP Clean Energy said: "This innovative collaboration with UK Power Networks and NESO empowers distributed energy resources like ours to play an active role in addressing transmission constraints, while unlocking new revenue opportunities and delivering tangible cost savings to consumers. It’s a win for sustainability, efficiency, and energy market access."

Visit MW Dispatch - UKPN DSO for further details, or ask about participating in the new service.

 

Published 24/03/2025

Back to news

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