Smartest Energy has started trading flexibility within the balancing mechanism (BM), dispatching first megawatts today at £74/MWh.
The company provides power purchase agreements (PPAs) to independent generators, such as wind, solar, gas peakers and batteries.
The firm said as of 23 October, it can bid those assets into the BM – and will soon launch a service enabling smaller generation and demand-side response to access the mechanism, which National Grid ESO uses to balance supply and demand on a half hourly basis.
Smartest is one of the few non-traditional suppliers now accessing the BM, alongside companies such as Flexitricity and Limejump.
The firm, which supplies around 2,500 business with energy, uses Origami’s platform to trade flexibility in a bid to achieve best returns. Smartest began trading on spot markets a year ago.
As prices within ancillary services are cannibalised, businesses aiming to make returns from trading flexibility are placing greater importance on stacking in revenues from the balancing mechanism and wholesale markets.
At present, those markets require a supply licence, though National Grid ESO and others are working to open up the balancing mechanism to aggregators without a licence or commercial agreement with a licensed supplier.
The BM is worth around £1.1bn gross per annum.
Related stories:
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New control desk ‘doubles small flex’ in BM
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National Grid outlines plans to bring all flex providers into Balancing Mechanism
Flexitricity aims for supply licence, eyes BM prize
Limejump: Aggregators will need a supply licence to survive
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