The marketplace allows providers to find, buy and sell existing contracts with other qualified providers in a single place, helping to streamline the process for trading agreements.
A lack of visibility was identified by Piclo as a barrier to secondary trading, which it described as important to flexibility markets due to it providing security to participants that if they need or want to, they can trade away their obligations.
The lack of visibility meant that previously there was no open way to know who was trading 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," James Johnston, CEO and co-founder of Piclo, said.
Piclo Exchange was developed as part of the Department for Business, Energy and Industrial Strategy FleX Exchange innovation trial, during which Piclo collaborated with the National Grid Electricity Market Reform (EMR) team and Capacity Market providers to understand barriers and help shape improvements to secondary trading.
It was designed to provide additional value streams and revenue stacking opportunities on the company's existing marketplace, Piclo Flex. The new marketplace is to optimise participation by providing access to multiple flexibility markets via one interface.
Indeed, while the Piclo Exchange trial is focused on the Capacity Market, in the future the marketplace has the potential to be applied to other secondary markets, such as distribution system operator (DSO) flexibility markets, Piclo said.
In 2020, the company secured £1.5 million from the government's Clean Growth Fund to continue to develop its online marketplace, while earlier this year it raised £4.7 million in a Series A funding round, with this funding supporting the development of new solutions and growth of its team.