In this bitesize Q&A, Suzy Lycett, Content Manager at Electron, speaks with Customer Support Manager, Ashton Campbell, to unpack what distributed energy resource (DER) operators need to engage with flex markets. He shares what sets successful participants apart, and how Electron and DSOs are working together to simplify and scale participation for those flexibility providers. Listen now – or read on for the transcript.
What are the criteria that flexibility providers generally need to meet to participate in flexibility markets?
Ashton Campbell: To provide flexibility services on ElectronConnect, flexibility providers must meet the distribution system operator’s (DSO’s) commercial qualification criteria. It’s a pretty simple process. They register and complete a standardised form submitted through the platform, and it is approved by the DSO.
They also must have assets owned by the registered company, or the right to engage in flexible services on behalf of the asset; have suitable assets registered on ElectronConnect that meet the market criteria – so that could be response times, control, type, etc. And lastly, they need a signed contract ahead of the service delivery, and that contract is between themselves and the DSO.
Between the DSOs, this first step of commercial qualification is very similar. The nuance is how they go about doing it. They may have different timeframes for when providers can submit a service agreement,. However, generally the first steps of the process – the registration, submitting the pre-qualification questionnaire – those steps are very standard at this moment across DSOs.
What do the most successful flexibility providers do differently once they’re active on the platform?
Ash: First of all, they’re very responsive and engaged in the process. And secondly, they have the team and the resources to participate – the right size of the team and also the level of expertise within a team to understand the market offering quickly. Some teams are a lot smaller, and they may not have the resources to participate.
And, of course, sometimes individuals might leave, they might move to a different team, and then we work with the new team to ensure that they’re up to speed and get them technically qualified and participating in the market.
Also, we find that because there’s typically only two large tenders per year for each DSO at this moment – they are bringing on more, but at this moment, those two tender rounds seem to be the main focus – there’s a cycle of high to low engagement and back when those tenders come about.
So, we do see peaks and troughs throughout the year for engagement and participation, but we are certainly seeing a steady increase of flexibility providers registering and increasing tender engagement and participation, growing tender on tender and month on month.
How are we working with distribution system operators to ensure that flexibility providers can more easily access markets, so we can scale flexibility?
Ash: With ElectronConnect, we have a user friendly platform that allows flexibility providers to participate, trying to make it as self-serve as possible, with us as a Support team on hand to help them, to provide the guidance, the assistance that they need at every step of the way.
Plus, we’re working in tandem with DSOs and the wider flexibility services community on standardisation. For the commercial qualification process, flexibility providers fill out an Energy Networks Association (ENA) standard template and submit it via the platform. That template is applied across all the DSOs.
Then, more specifically, for participation in the markets for the DSOs that we work with, communication is huge to ensure that providers are aware of the markets. We are working with the DSOs to ensure that we’re not over messaging flexibility providers, but keep them informed. At the same time, we align our messaging with the DSOs to ensure that providers are encouraged to participate and are aware of every step.
So there is a two pronged attack from us and the DSOs working together to ensure that flexibility providers participate and engage in the process. And, as I said previously, we’re seeing more engagement with each tender – which is good news.
This Q&A is edited for clarity.
