SP Electricity North West has started testing an “innovative” smart energy trading project designed to reduce renewable energy constraints.
The BITraDER project is designed to introduce a bilateral energy trading market to allow “large connected customers” to trade their curtailment obligations – the order in which they are asked to curtail their production during times of high network demand.
SP Electricity said the project would make it easier for renewable energy projects to connect to the grid and create new revenue opportunities for renewable energy producers. Participants can trade their position in the curtailment queue, which is usually led by variable renewable energy sources such as solar and wind, to retain a greater share of their production. Curtailment occurs when the power supply to the grid becomes overloaded and is intended to maintain stability and balance in the system.
Energy regulator Ofgem funded the project in 2022 at a cost of £8 million.
“The project is potentially groundbreaking,” says Chris Greenfield, BITraDER project manager at SP Electricity North West. “It will create a marketplace where companies can buy and sell spare capacity on the network. We are all very excited to see the results of the trial.”
During the three-month trial, participants will take part in a real-world capacity trading scenario, and SP Electricity said it would provide “valuable insights” to inform the final market design. These include the bid and ask prices for different scenarios, identifying barriers to participation and possible improvements to the rules and design of the scheme.
Curtailment poses a challenge to both renewable energy revenues and the expansion of generation capacity. Analysis agency Montel published data this summer showing that renewable energy is being reduced costs British consumers £152 million in the first half of 2025, and the total mitigation capacity over that period could have powered every home in Scotland.
In addition, speakers at Solar Media’s Summit on the purchase and income of renewable energy sources said in May that the costs of cuts in the energy sector are often misunderstood or underestimated. Shamieka Lynch, account manager at network consultancy Novogrid, says these are asset owners the containment estimates are wrong“You’re burning money.”
The introduction of a trading mechanism such as BITraDER could improve revenue prospects for curtailed projects and improve the integration of renewable energy sources with the electricity grid. It is conceivable that the prospect of generating greater revenues from containment practices could improve the already strong business case for new renewable energy projects.
“This trial provides the opportunity to hear directly from companies and ensure the market and platform meets their needs,” said Laurence Robinson, senior consultant at LCP Delta and customer lead for the BiTraDER trial.
