November 16, 2021 8:00 AM

Piclo boosts secondary trading in Capacity Market with Piclo Exchange launch

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Piclo, a leading smart and flexible energy marketplace, today launches Piclo Exchange, the inaugural secondary trading marketplace for Capacity Market Providers. For the first time, Capacity Market Providers can register to find, buy and sell existing contracts with other qualified providers in a single place. In the Capacity Secondary Market alone, there have been almost 300 trades in each of the previous two delivery years, worth between £15m to £35m.

Piclo Exchange was developed as part of the BEIS FleX Exchange innovation trial, during which Piclo collaborated with the National Grid EMR team and Capacity Market Providers to understand barriers and help shape improvements to secondary trading in the Capacity Market, as it continues to evolve in response to Net Zero and the growing demand for flexible, clean power. 

As well as providing additional value streams and revenue stacking opportunities on Piclo’s existing marketplace, Piclo Flex, Piclo Exchange will optimise participation by providing access to multiple flexibility markets (both ESO and DSO) via one interface. Piclo Exchange will make secondary trading opportunities visible and available in one place, streamline the process for trading agreements and deliver the best price through a competition auction. 

Competitive secondary markets are an important feature of flexibility markets, providing security to those participating that if they needed or wanted to, they could trade away their obligations. Whilst the Piclo Exchange trial is focusing on Capacity Market secondary trading, in future the marketplace could be applied to other secondary markets, such as DSO flexibility markets.  

James Johnston, CEO and co-founder, said: “Piclo Exchange is an industry-first and will directly contribute to creating a more transparent and effective secondary market in the Capacity Market. Previously, a lack of visibility in the process for CM secondary trading was a barrier, with no open way to know who was looking to trade or how to get the best price.

“Our new marketplace offers compelling new revenue and de-risking opportunities for Capacity Market Providers which will make the market more efficient and liquid. We are looking forward to welcoming new Capacity Market Providers and encourage them to register to join the growing number of +10 active providers who have already come on board.”

Piclo Exchange builds on Piclo Flex, the UK’s leading independent marketplace for locational flexibility services, which brings together System Operators and Flex Providers, with a total of 13.9GW of flexible capacity registered.


About Piclo

[This notice was update on 26th March, 2024]

Piclo’s mission is to decarbonise the grid. We develop software solutions that make our energy networks smarter, flexible and more sustainable. Piclo Max, our market access platform, enables flex sellers (such as EV and battery owners) to access all electricity markets from one place. Piclo Flex, our flexibility services marketplace, enables flex buyers (system operators) to source flexible electricity from flex sellers during times of high demand or low supply.

To date, Piclo has over 300,000 registered flexible assets representing 22 GW of registered flex capacity, with flexibility contracts awarded totalling £74m and 2.6 GW+ of flexible capacity procured.

Piclo currently operates in six global markets: in the UK, supporting all six Distribution System Operators (UK Power Networks, SP Energy Networks, Electricity North West, Northern Powergrid, Scottish and Southern Electricity Networks and National Grid Electricity Distribution); and the Transmission System Operator (TSO) (the ESO); in Ireland (ESB Networks), Italy (E-Distribuzione), Portugal (E-REDES)); in Australia (CitiPower, Powercor); and in the United States in New York State (National Grid) and Connecticut (United Illuminating). Aside from its leading position in the UK, Piclo has a growing presence in Europe, USA and the Asia-Pacific. 

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