Development of an appropriate commercial framework is key for both the introduction and evolution of new electricity network flexibility services. A clear and well targeted strategy will create service provider value propositions that align with DNO objectives and enhance market participation during rollout at scale.
The commercial strategy for RaaS must also provide the basis for future adaptation as the electricity industry and its market participants continue to evolve, bringing new technologies and solutions for efficient, sustainable network operation.
Engagement with the supply chain to present proposals and invite feedback & challenge is fundamental for ensuring that the commercial approach is designed to promote market development, enhance the attractiveness of bidding for and delivering RaaS in remote areas, and enable market participants to efficiently engage with RaaS. The aim is to create a product which optimises benefit across all parties – a solution which is attractive to potential RaaS Service Providers (RSPs), and beneficial and cost effective for DNO customers.
The principles applied when developing the approach for RaaS reflect key considerations identified through engagement with the wider industry, and support the project aims to:
The commercial framework developed through the project provides the foundation for future rollout of RaaS following successful technical trial.
Project Deliverable 5 – Supply Chain Engagement
This deliverable sets out the approach taken to develop the commercial framework for RaaS, and the supply chain engagement activities used to present the project team’s thinking to date and invite external perspectives on the potential future route to market.
The document addresses the following aspects of the commercial strategy for future rollout of RaaS, and sets out the feedback received from stakeholders with associated inferences for RaaS:
Key stages of the proposed tender process for RaaS are shown below.
An Enterprise Design perspective
The following image depicts the potential future market structure for RaaS. The interfaces between organisations will be key to successful RaaS schemes, and an enterprise perspective reflects this.
The commercial framework for RaaS must work to support relationships between the DSO, asset owner, asset operator, integrator(s), supplier(s) and others, with commercial alignment to ensure that RaaS is beneficial both for DSO customers and for those involved in delivering the service.
The approach implemented must promote open interaction, identify responsibilities and risks at different stages, apply rewards & penalties which reflect those, and avoid anything which may constrain collaboration.
The project will continue to apply enterprise design principles in developing and implementing the commercial framework for future rollout of RaaS.