DYNAMIC CONTAINMENT UPDATE

Arenko first provider to successfully offer non-Balancing Mechanism Units (“BMU”) Real Time Monitoring (“RTM”) for Dynamic Containment

Stacking Balancing Mechanism, Dynamic Containment and wholesale power offers immediate revenue uplift

Arenko, a leading software platform provider to the global energy asset automation market, is pleased to provide an update on its Dynamic Containment service provision. Arenko is providing this service to National Grid ESO with 51MW batteries owned by Gresham House Energy Storage Fund and Gore Street Energy Storage Fund, the two leading listed energy storage funds in the UK and has been involved in the service since its launch in October 2020.

Arenko first provider to successfully qualify for Non-BMU Real Time Monitoring

Out of a total 405MW of battery assets delivering Dynamic Containment, there are currently 207MW across 15 batteries delivering the service which are not registered as Balancing Mechanism Units (“Non-BMU”). From 1 April 2021, these assets need to qualify for Real Time Monitoring (“RTM”) or they will be ineligible to continue delivering Dynamic Containment to National Grid ESO.

Arenko has become the first provider to qualify a Non-BMU RTM battery, by successfully completing the process at Gore Street’s Lower Road 10MW battery. The process includes setting up high resolution operational metering and accurate, automated communication channels with National Grid ESO in order to pass complex Conformance Testing. This process was completed on 9 February 2021.

Arenko’s RTM solution is fully transferable onto any of our customer’s batteries. Arenko have a strong track record in rapidly onboarding new customers into dynamic containment as evidenced by our recent integration at Lower Road battery system where Arenko took one working week from attending site to passing the Independent Technical Expert certification to deliver that system into Dynamic Containment.

Stacking Dynamic Containment with Balancing Mechanism and wholesale power offers immediate revenue uplift of 3%

Arenko was the first group to offer our customers Balancing Mechanism and Dynamic Containment stacking when this was permitted by National Grid ESO on 27 January 2021. National Grid ESO have allowed batteries to rebalance their state of charge in the Balancing Mechanism rather than on the open market. This is a first step to offering full two-way stacking and allows batteries to help balance supply and demand in the grid, whilst at the same time, maintain the strength of the system by helping to manage the frequency.

Arenko’s algorithmic, fully automated software has been successfully three way stacking Dynamic Containment with Balance Mechanism and wholesale power rebalancing in real time without impacting the integrity of any service. This includes charging the battery when power prices have been negative.

This has reduced the cost of delivering dynamic containment from £0.69 per MW per hour to £0.17 per MW per hour. The £0.52 per MW per hour saving represents a 75% reduction in cost and an overall revenue uplift of 3%, which our customers benefit from. We expect a 3% to be sustained going forward which will be supplemented further through new stacking strategies which are currently in development.

Rupert Newland, Founder and CEO of Arenko Group, said:

“We are delighted to be the first to offer non-BMU Real Time Monitoring and Stacking to our customers. Our flexible software solution enables us to quickly respond to market changes so that we can rapidly offer new features to our customers and our automation technology allows us to deliver best in class performance. Today’s announcement is yet another example of Arenko’s consistent track record on being the first entrant to new markets and of how software and automation can contribute towards a cleaner, greener future.”

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