The ability to remotely control EV chargers turns EVs into energy assets (like power plants or energy storage facilities) that can participate in energy markets. In addition to energy markets, which allow generation and storage capacity to be traded, some regions also have capacity markets, which facilitate the trading of future generation and storage capacity. (For an explanation of how capacity markets work, see Wikipedia or nrg.)
Piclo is a provider of energy market software solutions that operates in six global markets, including the US and the UK. Now the company has announced the completion of a trade between Axle Energy and Oaktree Power, which enabled EV chargers to enter the UK’s Capacity Market without relying on smart meter data.
Piclo developed a platform to facilitate secondary trades of Capacity Market obligations. This “operates like a secondhand marketplace where existing contracts can be traded outside of the T-1 and T-4 auctions.”
“By advertising on its Piclo Max marketplace and tapping into its database of over 250 flexible energy asset owners in the UK, Piclo facilitated the transfer of a 3.7 MW T-1 contract from Oaktree Power to Axle Energy,” the company explains. “The trade, equivalent to 528 7 kW EV chargers, not only enabled Axle Energy to acquire additional capacity, but also enter EV chargers into the Capacity Market without relying on smart meter data, something that has traditionally been a requirement to demonstrate compliance.”
“Axle Energy’s innovative approach, which leverages the flexibility of EV chargers, paves the way for new avenues of participation in the market by a wider variety of companies,” Piclo tells us. “In doing so, new technologies such as EV chargers can be leveraged to provide additional flexibility, stabilizing the grid while generating additional revenue for their owners.”
“As the number of electric vehicles continues to grow, innovative solutions are essential to integrating these assets into the grid,” said James Johnston, CEO at Piclo. “Piclo is proud to have played a role in unlocking the flexible power of EV chargers by matchmaking Axle Energy with Oaktree.”
“The predominant system of using smart metering for the Capacity Market just doesn’t work for residential devices like EV chargers,” said Karl Bach, CEO at Axle Energy. “We’ve shown that EV chargers have the accuracy, capability and reliability to participate directly in the Capacity Market, paving the way for increased zero-carbon capacity in this important market. Today, Capacity Market transactions are predominantly limited to annual auctions; the Piclo platform is laying the groundwork for more transparency, which should hopefully unlock additional market liquidity in future years.”
“We had a last-minute negotiation drop out, so we were looking to fill that capacity. In the circumstances we were in, we were looking to find a buyer quite fast,” said Angie Castillo, Director of Operations at Oaktree Power. “Piclo has the database of buyers who are looking to take part in the Capacity Market; that opens a whole different market of resource to marry those two up.”
Source: Piclo