Limejump is to trade the power output of the first subsidy-free Scottish wind farm, taking it into the Balancing Mechanism (BM).
The 46MW Crossdykes onshore wind farm – developed and owned by Muirhall Energy Limited and WWS Development LLP – is the first subsidy-free wind farm to enter the BM and the largest wind site in Limejump’s portfolio.
“Bringing subsidy-free wind into the Balancing Mechanism is a red-letter day for the industry,” Limejump’s senior business development manager, Kristina Rabecaite, said
Intelligent price management was used to offset risk via a “track & trade” power purchase agreement, the company said, using market pricing information to track the market and “lock the price in at the optimum time”.
This, Limejump said, results in higher returns whilst still managing the price fluctuation risk.
“The decision by Muirhall Energy and WWS to work with Limejump underlines the depth of market knowledge and trading experience that we have at Limejump,” Catherine Newman, Limejump’s chief executive officer, said.
The wind farm, located in Dumfries & Galloway, is also to be traded in the capacity market.
It is the latest in a number of new assets to be entered into the BM, which itself is undergoing change. Virtual Lead Parties (VLPs) were introduced in April, allowing independent aggregators to trade in the BM without a supply license.
Then in August, Elexon revealed it is considering further widening of the BM through changes to the Balancing and Settlement Code (BSC) that would allow individual asset meters to be used for settlement purposes.
The BM IT interface has also undergone an overhaul, with a new interface introduced in a bid to make it simpler and more cost effective for smaller participants to join.