Market stimulation packages

We want as may people and assets to be able to take part in the trials as possible, so we have designed two Market Stimulation Packages (MSPs) that we hope will support and encourage participation.

Terms and conditions apply for both packages below and can be found in the Flexibility Services Agreement. These packages are not available for Peer to Peer services.

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.

TRANSITION aims to have both packages below available for you to take part in the trials by November 2021, but this will be subject to several factors. We will keep you updated if there are any changes to this position, 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 (Mon-Fri) and no less than 4 hours notice will be given prior to the requested start time.

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 £0.15/kW for your flexibility capacity. If you successfully deliver your flexibility across 10 x 1 hour-long events, then you also receive a bonus payment of £0.70/kW.

We will issue 15 delivery instructions across the contract period and you will need to successfully deliver on 10 out of these 15 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 10 successful deliveries you will not receive the bonus payment, you will however still receive your £0.15/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 £0.15 = £15
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 10 times over the duration of the contract the total flat rate payment you will be paid on this contract will be 10 x £15 = £150.

You will ALSO receive a Bonus Payment for having successfully delivered on 10 occasions. This will be 100 x £0.70/kW = £70

The total you will be paid will be £220.

If you only ‘successfully delivered’ on 9 occasions, there would be no Bonus Payment so the total value of the package in this case would be £15 x 9 = £135.

Package Duration
This package offers an up to 6-month agreement in which the 15 events will be called.
(NB. If we fail to instruct delivery 15 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 £4.00/kW for your contracted Flexible Capacity. You may offer portfolios of multiple assets.

We will ask you to deliver flexibility across 50 x 1 hour-long events (between the hours of 3pm and 7pm). For this you will be paid £0.08/kW x Flexible Capacity for these 50 events. We will issue 65 delivery instructions across the contract period and you will need to ‘successfully deliver’ on 50 out of these 65 instructions.

You will be paid once you have ‘successfully delivered’ the first 25 events and then for the remaining 25 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 50 successful event deliveries, at the end of the contract you will also receive a bonus payment of £2.00/kW x Flexible Capacity.

If you do not manage to meet the target of 50 successful deliveries you will not receive the bonus payment, you will however still receive your £0.08/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 50 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 £4/kW) = £1800.
A delivery payment for ‘successful delivery’ of the 50 events (450kW x £0.08 x 50) = £1800
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 £2/kW) = £900
Total payment = £4500

If you only ‘successfully delivered’ on 45 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 £3420. We would also reserve the right to apply a ‘penalty fee’ for the 5 failed deliveries.

Package duration
This package offers an up to 18-month agreement in which the 65 events will be called.
(NB. If we fail to instruct delivery 65 times during your contract, then any of these ‘uninstructed events’ will count towards your total and payments as if you had successfully delivered them).

Further Information

This Flow Diagram (PDF) further explains the above two packages.

The TRANSITION Flexibility Services Agreement also goes into greater detail in explaining the requirements of both packages.

Applying for a stimulation package

If you wish to apply for one of these packages please first complete the Expression of Interest Form if you have not already done so. The qualification and contractual process is the same as described here. You will also be asked to sign an agreement in relation to your chosen package.

Get Involved

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