Short-term (D-1) stability market | National Energy System Operator
Summary
NESO published a webinar update on its short-term (D-1) stability market assessment, concluding there are no consumer benefits to implementing a full short-term stability power market under current conditions. The assessment follows NESO's 2023 Markets Roadmap commitment to procure stability services across long-term (Y-4), mid-term (Y-1), and short-term (D-1) timescales. NESO's cost-benefit analysis found insufficient justification for the D-1 market implementation.
Why it matters
NESO abandons the short-term stability market after finding it fails cost-benefit analysis, leaving stability procurement concentrated in longer-term markets. This preserves the status quo where stability services remain primarily contracted years ahead rather than closer to real-time, maintaining barriers for technologies that could provide stability flexibly but cannot commit years in advance.
Key facts
- •Short-term (D-1) stability market will not be implemented
- •Cost-benefit analysis showed no consumer benefits under current conditions
- •Follows 2021 Stability Market Design innovation project conclusion
- •NESO maintains procurement across Y-4 and Y-1 timescales only
Areas affected
Memo
Short-term (D-1) stability market | National Energy System Operator Show/Hide Menu Toggle Add to favourites Close tooltip Sign in to add this page to your favourites Sign in or register Show favourites Close Close tooltip Sign in or register to manage your favourites Sign in or register Help You are now signed in Visit My NESO account to view and manage your dataset subscriptions. Maybe later Go to your account Short-term (D-1) stability market In 2021 we launched the Stability Market Design innovation project to explore the design for the enduring stability market. This project has recently concluded and AFRY summarised their recommendations in an end of project webinar on 17 July 2023 ( slides and recording available on the stability market design webpages). As a result of this work, in our 2023 Markets Roadmap we set out the aim to procure stability services across several timescales: Long-term (Y-4) Mid-term (Y-1) Short-term (D-1) We have published a webinar on the short-term stability market in March 2026, to provide industry with an update on our assessment of the potential for a short-term market. Our Cost Benefit Analysis and Market assessments have demonstrated that there aren’t consumer benefits to the implementation of a full short-term stability power market under current market conditions. Latest News Latest News March 2026 Short-term Stability Update Webinar Below you can find the latest material from our Short-term Stability Update Webinar in March 2026. Watch the webinar Download the slides logo--facebook