A STOR Framework Agreement: Everything You Need to Know

A Short-Term Operating Reserve (STOR) Framework Agreement is an arrangement between National Grid, the electricity distribution network operator, and a provider of energy services. This agreement sets out the terms and conditions for the provision of STOR services, which are designed to maintain the stability of the electricity grid during periods of peak demand or unexpected network disturbances.

There are two types of STOR agreements:

1. Capacity Market STOR: The provider commits to deliver STOR services during the winter months (November-March) for a guaranteed period of time (usually one or two years). In return, the provider receives a capacity payment which is fixed in advance.

2. Balancing Mechanism STOR: The provider commits to make STOR services available on a short notice basis (usually within two hours) throughout the year. The provider is paid for each hour that they are called upon to provide STOR services.

To qualify as a provider of STOR services, the energy services company must demonstrate their technical capability and financial stability to National Grid. They must also have the necessary assets and staff to deliver STOR services when required.

STOR providers typically use a combination of technologies to deliver STOR services, such as battery storage, diesel generators, and demand-side response. They must provide evidence that their equipment is reliable, and that they can deliver services in a safe and compliant manner.

STOR providers play an important role in ensuring the security of the UK’s electricity supply. STOR services are typically called upon during periods of high demand or when there is a sudden disruption to the network, such as a power station outage or a lightning strike.

The STOR Framework Agreement outlines the responsibilities of the provider and National Grid, including the service level targets, reporting requirements, and the payment structure. The agreement is legally binding and must be adhered to by both parties.

In summary, a STOR Framework Agreement is a vital arrangement between National Grid and an energy services company that provides STOR services to maintain the stability of the UK’s electricity grid. The agreement establishes the terms and conditions for the delivery of STOR services and outlines the responsibilities of both parties. Providers of STOR services play a crucial role in ensuring the security of the UK’s energy supply, and the STOR Framework Agreement ensures that they are held accountable for their obligations.