Ylem Energy is attempting to grow its behind the meter flexible asset business by offering TPIs commissions.
Ylem, which is deploying gas engines and battery storage for standalone flexibility services, also wants to grow its business behind the meter. Its aims to deploy kit at customer sites that can boost resilience and enable peak cost avoidance – but also allows Ylem or its partners to trade power from those assets in either contracted or merchant markets.
However, third party intermediaries, or TPIs, ‘own’ the relationship with many businesses. As such, firms trying to deploy behind the meter assets, such as engines, CHP or batteries, need to get them onside. Otherwise, they tend to struggle – even with fully funded approaches.
Ylem, however, said it will pay TPIs commission for successful introductions for its dynamic power purchase agreement (DPPA), ten year contracts that allow Ylem to make the money back on its equipment and the host businesses to save “up to 30 per cent” on bills.
Under the structure, Ylem owns, operates and maintains the kit. Business development director Jon Feingold suggested it is a win-win-win: Businesses save money, the TPI gets paid and Ylem gets a route to market.