Contracts for Innovation: NI Water: Green Capacity Market Services

Energy underpins the majority of NI Water’s operations, with the company being the largest electricity user in Northern Ireland with an annual consumption of c. 300GWh.  A secure affordable and sustainable supply of electricity is critical for NI Water to be able to provide an essential service to customers across its c.3000 sites.

NI Water has circa. 300 diesel generators with some being >20 years old.  These generators will need to decarbonise and meet the requirements of existing and future legislative changes including the Medium Combustion Plant Directive (MCPD).  The requirement for generators to be testing and monitored will bring additional OPEX costs to business.

The business must now plan, investigate and develop solutions for the future of NI Water’s generator fleet which is critical for the delivery of water and wastewater services.  These new or potentially retrofit solutions must provide a reliable core function in terms of backup generation whilst potentially earning revenue in the capacity market.  This will all need to be delivered at the best possible value for the business.

The business also recognises that security of supply and the need for decarbonisation are the two main challenges facing the energy sector and, additionally, recognises that the capacity market requires longer duration response capability (+8 hours) as the service to date heavily relies on fossil fuel generation.

The Challenge

• NI Water require an innovative solution which enables the decarbonisation of c.300 standby generators.
• Any proposed solution must be compliant with existing legislation and climate related obligations including but not limited to MCPD legislation.
• The solution developed can be a new or retrofitted idea which must offer best value for the business.
• The solution must be available to purchase and be commercially viable for NI Water to roll out within the time limits of all legislation compliance requirements but no later than January 2027.
• The solution must enable optimised participation in the capacity and system services market through the generation and provision of green electricity and present an invest to save opportunity for the business.
• The solution must provide a reliable core function in terms of back up generation for NI Water’s assets.
• The Capacity market participation requires a longer duration response capability (+8 hours) from green electricity resources as a minimum.
• Any solutions developed by process participants would need to have the potential to be exportable to other markets facing the same decarbonisation and security of supply issues.

Funding

This competition has a total budget of £270,000 ex VAT for Phase 1 work. It is anticipated that four bidders will be selected; each of the successful bidders will receive an amount in accordance with their bid, but subject to a maximum amount per bidder for 4 suppliers to the value of £67,500 (exclusive of VAT, if chargeable).

These awards will be made using the Contracts for Innovation delivery mechanism. Any organisation may apply as long as they can demonstrate a credible and practical route to market, i.e. the application must include a plan to commercialise the results.

Information Event

A briefing event will be held on Thursday 14th November 2024, 11:00 – 12:30 (UTC). Click here to register for the briefing event.