Notice

Stream 1 - Interoperable Demand Side Response programme: questions with responses

Updated 17 January 2023

This page covers responses to Competition clarification questions received for Stream 1 of the Interoperable Demand Side Response (IDSR) Programme.

1. General

1.1 Will the Interoperable Demand Side Response Programme Information Event session be recorded and available to listen to again?

The event was not recorded. However, the slides can be found on the Interoperable Demand Side Response webpage.

1.2. Will the How to Apply information event content be shared more broadly beyond the webinar?

The How to Apply information event recording and slides can be found on the Flexibility Innovation Programme webpage.

2. Scope

2.1. How does BEIS envision this programme aligning with PAS 1879, and Smart Charge Point Regulations Phase 1 (30 June) and Phase 2 - in development?

Alignment to the principles of PAS 1879 is a requirement of the Stream 1 competition. Aspects of the Streams 2 and 3 competitions will require alignment to the principles of PAS 1879. Please see the relevant requirements in the corresponding Competition Guidance Notes for more detail on each Stream’s competition requirements. The Smart Charge Point Regulations are part of a wider policy area, please refer here for further details.

2.2. Can you confirm that Stream 1 isn’t required to use OpenADR?

Stream 1 seeks to support the development and demonstration of energy smart appliances to deliver interoperable demand side response according to PAS 1878 and 1879. PAS 1878 mandates that any implementation of interface A (between Customer Energy Manager (CEM) and Demand Side Response Service Provider (DSRSP)) shall support the use of OpenADR as described in Annex F and shall always revert to the use of OpenADR in order to guarantee interoperability. For this reason, the use of OpenADR in Stream 1 is mandatory.

For further details on the OpenADR requirements for Streams 1, please refer to Section 1.5 – Competition Requirements in the corresponding Competition Guidance Notes.

2.3. Are there other codes/standards that this programme will consider beyond PAS 1879? BSC code modification P375 (‘Metering behind the Boundary Point’) is going live shortly and is accompanied by metering Code of Practise (CoP11) which are needed for settle distributed flexibility in the Balancing Mechanism.

The standards in scope of the programme are PAS 1878, PAS 1879 and the Standalone Auxiliary Proportional Controller (SAPC) smart metering specification. The programme does not require demonstration of other standards, such as CoP 11, or other requirements not in scope of these standards.

Energy smart appliances (ESAs) will also need to meet all over-arching relevant regulations (for example, product safety, radio equipment) (Streams 1 and 2). It is for ESA manufacturers to determine which standards/codes/ etc. they need to use to meet these obligations.

For further details on requirements for all Streams please refer to the corresponding requirements/specifications section in the relevant Competition Guidance Notes.

2.4. Are we envisioning that this demand side response (DSR) would be implemented by Distribution Network Operators (DNO)/ Distribution System Operators (DSO) given the focus on grid stability? If so, is there regulatory changes which are being considered to facilitate DNO based DSR, and or is there a particular framing expected of the projects?

PAS 1878 does not cover the deployment and functional configuration of the wider DSR environment (for example, communication between DSRSP and Transmission System Operator (TSO/DSOs), which is out of scope of this Programme.

For DSR systems built using the GB smart metering system technical framework (Stream 2), the connections between the SAPC, ESA, Data Communication Company (DCC) and DCC User are in scope.

2.5. Will the testing phase of the products look to install any in real homes or just a lab environment?

Please refer to Section 1 – Competition Overview of the Competition Guidance Notes where the detail of the Competition Phases is outlined.

3. Eligibility

3.1. Are we able to submit an application for Streams 1 and 2, or can one company only submit one application?

Projects consortium member(s) (including lead applicants) can apply into multiple Competition Streams if their applications demonstrate clearly how they intend to meet the relevant specifications.

Please refer to Section 3.2 – Application in the Competition Guidance Notes for further guidance on submitting multiple applications.

Please note – projects submitting multiple applications will need to submit a separate application for each Stream they wish to apply to.

3.2. Is the competition open to non-UK domiciled companies?

Yes, however over 50% of the Project’s activities (as measured by eligible Project costs) must be conducted in the UK.

Please refer to Section 5 – Eligibility for Funding in the corresponding Competition Guidance Notes.

3.3. Are collaborative applications required or just encouraged?

This should be considered appropriately based on the needs of the application.

For Streams 1 and 2, projects are expected to be delivered through a consortium approach. Please refer to Section 1.4 – Delivery Approach for further information.

Whilst there are expectations outlined in the guidance, collaborative applications are not a mandatory requirement for any of the Competition streams.

4. Funding

4.1. On page 55 of the Stream 1 guidance notes it says: “Please note: Project team contribution in kind are not permitted under this Competition.” What does “Project team contribution in kind” mean? Does “contribution in kind” mean non-paid labour costs (volunteering)? E.g. https://www.lawinsider.com/dictionary/contributions-in-kind

Contribution in Kind is defined as being services, materials or labour, provided free of charge by the lead contractor, consortium member or sub-contractor for the benefit of the project being applied for. Examples are generally either time of an individual being supplied at zero cost or goods/materials being made available to the project at zero cost.

For further guidance on each Stream please refer to the corresponding competition guidance.

4.2. Is the up to £1.5 million per project for Phase 1 or for all 3 project phases?

This answer applies to Stream 1 and 2 only . A maximum expected grant value of £1.5 million excluding VAT will be available per project. This grant funding includes funding for Phases 1, 2 and 3 (assuming continuation to Phases 2 and 3 – subject to Stage Gate review conditions outlined in Section 1.6 – Phase Progression of the corresponding Competition Guidance Notes).

Please refer to Section 4 – Funding Levels and Aid Requirements of the Competition Guidance Notes for Streams 1 and 2 for further detail.

Please refer to Section 4 – Contract Size and Restrictions on Funding in the Stream 3 Competition Guidance Notes for information on the available funding for Stream 3.

4.3. Can you explain more in detail or by example what are the dependencies on funding? If BEIS funds £1.5 million does each entities need to equally match this amount?

Please refer to Section 4.2 – Grant Intensity Guidelines of the corresponding Competition Guidance Notes for details.

4.4. Is there a project size limit for single company applications?

Please see the answer to questions 4.2 and 4.3 above.

4.5. What evidence needs to be submitted regarding labour costs? Would it be time sheets and rate sheets for all time spent on the project, or is anything further required?

Please refer to Appendix 4 (Streams 1 and 2) - Completion of Cost Breakdown Form within the corresponding Competition Guidance Notes for clarity on evidence required as part of the application process.

For evidence required during project delivery, please refer to Annex 1 – Grant Funding Agreement, Section 4.6. Grant recipients will need to provide sufficient evidence of costs to satisfy that the costs provided are reasonable and robust. With regards to evidence of labour costs specifically, this could include documentation such as timesheets and/or personnel cost rates. However, please note, the Authority may request further documentary evidence on a case-by-case basis should this be required.