Market Stimulation Packages
Note: As part of the recruitment process for trail participants; TRANSITION developed extensive resources, explaining key concepts of flexibility markets to a wide ranging audience. Our plain English explanations are a great resource for those interested in replicating our trials.
The purpose of the Market Stimulation Packages (MSPs)
We want as many people and assets to be able to take part in the trials as possible, so we have designed two MSPs that we hope will support and encourage participation.
Terms and conditions apply for both packages below – contact us if you need to know more.
There are a limited number of these packages that we can offer as part of the trials. They will be agreed on a ‘first come first served’ basis so early application is recommended.
We reserve the right to remove the opportunity to sign up to these packages at any time during our trials – we will keep you updated if there are any changes, either via email (if you provide it), or through this website.
For both MSP1 and MSP2 there will be a maximum of one instruction issued on any one business day from Mon-Fri (although we can discuss options outside of these times if they better suit the participant) and no less than 4 hours’ notice will be given prior to the requested start time.
Market Stimulation Packages will no longer be available as the project has entered trail period 3.
Package 1 – Simplicity Package
Why?
This package is designed to provide simplicity and financial security when providing flexibility to the network and is recommended for those with smaller assets or those with less experience in taking part in flexibility markets.
How?
We will pay a flat rate of £0.35/kW for your flexibility capacity. If you successfully deliver your flexibility across 5 x 1 hour-long events, then you also receive a bonus payment of £0.80/kW.
We will issue a minimum of 8 delivery instructions across the contract period and you will need to successfully deliver on 5 out of these 8 instructions. Each of the events will occur between the hours of 3pm and 7pm, with each event measured in one-hour windows. So long as you deliver 65% or more of your contracted capacity over an event then that is considered to have been ‘successful delivery’.
If you do not manage to meet the target of 5 successful deliveries you will not receive the bonus payment, you will however still receive your £0.35/kW for any deliveries where you provided 65% or more of your contracted capacity to us.
You can offer portfolios of multiple assets totalling up to 750kW for this package.
Example:
You have 2 batteries. One is 40kW the other is 60kW.Your contracted capacity combining the two batteries is 100kW.
For each successfully delivered event you will receive 100 x £0.35 = £35
So long as you provide at least 65% of your 100kW contracted capacity (i.e 65kW or more) this would be considered ‘successfully delivered’ and you would receive the full payment.
If you do this 5 times over the duration of the contract the total flat rate payment you will be paid on this contract will be 5 x £35 = £175.
You will ALSO receive a Bonus Payment for having successfully delivered on 5 occasions. This will be 100 x £0.80/kW = £80
The total you will be paid will be £255.
If you only ‘successfully delivered’ on 4 occasions, there would be no Bonus Payment so the total value of the package in this case would be £35 x 4 = £140.
You can use our MSP calculator MSP Calculator to find out what you might earn from using your energy asset to supply flexibility through this package.
Package Duration
This package offers an up to 3-month agreement in which the 8 events will be called.
(NB. If we fail to instruct delivery 8 times during your contract, then any of these ‘uninstructed events’ will count towards you total and payments as if you had successfully delivered them).
Package 2 – Upgrade package
Why?
This package is designed to provide financial security and support in getting your asset ‘flexibility ready’. It is recommended for those with smaller assets looking to make their participation less manual.
How?
On the signing of the MSP agreement you receive an initial payment of £8.00/kW for your contracted Flexible Capacity. You may offer portfolios of multiple assets.
We will ask you to deliver flexibility across 30 x 1 hour-long events (between the hours of 3pm and 7pm). For this you will be paid £0.12/kW x Flexible Capacity for these 30 events. We will issue a minimum of 40 delivery instructions across the contract period and you will need to ‘successfully deliver’ on 30 out of these 40 instructions.
You will be paid once you have ‘successfully delivered’ the first 15 events and then for the remaining 15 at the end of the contract. So long as you deliver 65% or more of your contracted capacity over an event then that is considered ‘successfully delivered’.
If you manage your 30 successful event deliveries, at the end of the contract you will also receive a bonus payment of £4.00/kW x Flexible Capacity.
If you do not manage to meet the target of 30 successful deliveries you will not receive the bonus payment, you will however still receive your £0.12/kW for any deliveries where you provided 65% or more of your contracted capacity to us.
We reserve the right to also apply a penalty, capped at the amount of your up-front payment, if you do not achieve the 30 successful event deliveries.
You can offer portfolios of multiple assets totalling up to 450kW for this package.
Example
You have a business running a fleet of 15 Electric Vehicles with 30kW capacity batteries, you would have capacity to provide 450kW of flexibility from the vehicles back to the grid. In this case your package would be paid as follows.
An upfront payment of (450kW x £8/kW) = £3,600.
A delivery payment for ‘successful delivery’ of the 30 events (450kW x £0.12 x 30) = £1,620
NB: For the event to be ‘successfully delivered’ you would need to have provided 65% or more of the 450kW contracted capacity (i.e 292.5kW or more). This will be considered ‘successfully delivered’ and you will receive the full payment.
A bonus payment of (450kW x £4/kW) = £1,800
Total payment = £7,020
If you only ‘successfully delivered’ on 25 occasions by the end of the contract period, there would be no bonus payment, so the total value of the package in this case would be £4,950. We would also reserve the right to apply a ‘penalty fee’ for the 5 failed deliveries.
You can use our MSP calculator MSP Calculator to find out what you might earn from using your energy asset to supply flexibility through this package.
Package duration
This package offers an agreement lasting until the end of these trials(February 2023) in which the 40 events will be called.
(NB. If we fail to instruct delivery 40 times during your contract, then any of these ‘uninstructed events’ will count towards your total and payments as if you had successfully delivered them).
Technical Trials
MSP packages were discontinued during Trial Period 3 of the Leo trials as there was no uptake from participants for these packages throughout. This meant MSPs were also not used within the Technical Trials. However there was an incentive payment provided for participants within the Technical Trials which involved a maximum payment of £2,500 if all criteria was met.
The incentive payment was implemented within the Technical Trials as the Project LEO partnership was no longer there to support and to ensure organisations participating were not at a loss due to resourcing costs required to participate.
Further Information
You can use our MSP Calculator which shows you what you might earn from your energy assets for either of the MSPs, or you can use it to compare the two options.
There is also an MSP ‘Flow Diagram‘ (PDF) that further explains the above two packages and processes.
Applying for a stimulation package
If you wish to apply for one of these packages please first complete the Expression of Interest Form (Now Closed) if you have not already done so. You will also be asked to sign an agreement in relation to your chosen package.
Applying for a Temporary Capacity Variation.
Temporary Capacity Variations to your connection for generation can be applied for here
Temporary Capacity Variations to your connection for demand can be applied for here
