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How Performance Payments Work

How an installed project gets tracked and how we turn performance into payments

Aggregators get paid for measured performance based on Grid Value

The Recurve Platform tracks the savings of every aggregators projects monthly both at a site, then for payment at the portfolio. Aggregators can track their projects savings in their instance of the Recurve Fleet Manager and valued via Flex Ledger. All Calculations are open-source with market rules guided by the CPUC Normalized Metered Energy Consumption CPUC rulebook.

Aggregators are paid for the measured grid value at the meter, so projects that maximize summer peak reductions will be the most valuable.
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  • Aggregators are paid based based on the net total systems benefit based on population NMEC.
  • Hourly avoided cost values are provided in advance and based on peak enhanced, CPUC Avoided Cost Values.
  • Savings are based on hourly measurement of flexibility at the meter against an open-source FLEXmeter baseline.
  • Measures are paid based on their "Measure Life" (aka EUL), but paid out fully in year one.
  • Load shifting behavior based approaches assume a one year measure life.
  • Payments will be made quarterly and paid in full at year one.
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What is Market Access Enhanced Avoided Cost?

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The Market Access FLEXmarket utilizes a Enhanced Avoided Cost Value with additional value placed in the hours of 4pm to 9pm weekdays in the summer (June, July, Aug, September). Net Peak places additional value during the hours of 7pm and 8pm.

You can explore the CPUC's Avoided Costs values with this handy Value Explorer, built on the open source FLEXvalue engine.

Soon the final summer 2022 Market Access Price signal will be available, this is a approximation of what it may look like:

This is the framework for how performance payments are made. The specific details of the Measurement & Verification plan will be found in the specific FLEXmarket page for the project you have enrolled.

FLEXmarket is a Population NMEC Program

PictureCPUC NMEC Rulebook
All FLEXmarkets are structured to classify as 'Population NMEC programs' and do not have fixed measures or incentives. The program-specific M&V plan will describe the approach and associated software tools for calculating actual payable savings. Learn more about population NMEC here. 

​​The public, open source CalTRACK 2.0 methods, executed via the Linux Foundation Energy OpenEEmeter for the calculation of baseline models and counterfactuals, GRIDmeter for comparison group sampling and savings adjustment, and FLEXvalue for the calculation of grid value based on the measured hourly savings impact and the CPUC’s avoided cost calculator determine payable savings.

The open-source methods and codebase can collectively be called the FLEXmeter. The FLEXmeter methods and code will be used for quantifying energy efficiency impacts.

When Do Payments Happen

Payments will be made at fixed quarterly intervals established in the program rules and are based on each aggregator’s project portfolio that is “active for payment”. Projects become “active for payment” after the value generated exceeds participant costs (as applicable) and marketplace management costs for the project associated with the forecasted savings. Payments are paid in full at the end of the first full year in operation.

In addition, 10% of measured project value will be withheld each quarter to provide a safety factor in regards to seasonality. As projects complete the full 12 month measurement period, aggregators will be compensated with a “true-up” payment in the following quarterly payment cycle that will release owed funds. A visualization of payment cadences is shown in the figure below.
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click to enlarge

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Open-Source Revenue-Grade Measurement

​The public, open source CalTRACK 2.0 methods, executed via the OpenEEmeter for the calculation of baseline models and counterfactuals, GRIDmeter for comparison group sampling and savings adjustment, and FLEXvalue for the calculation of grid value based on the measured hourly savings impact.
The open-source methods and codebase can collectively be called the FLEXmeter
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www.caltrack.org
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LF Energy's OpenEEmeter
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GRIDmeter
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FLEXvalue
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Why Open-Source? 

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Transparent
​Measurement

Transparent measurement builds the trust markets need to facilitate transactions that all parties can agree on.​
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Replicable
​Methods

Standard inputs combined with replicable methods and transparent implementation enables all parties to have confidence in outputs.
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Available
​​To Everyone

Anyone can use open-source software preventing vendor lock-in and enables a transparency and collaboration.
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Stakeholder
​Driven

Utilities, regulators, implementers, evaluators and academic researcher, all contributed to all listed open-source methods.
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  • Enroll Projects
    • Commercial
    • Residential
    • Peak FLEXmarket
  • Markets
    • PG&E >
      • Commercial
    • MCE >
      • Commercial
      • Residential
      • Peak
    • SCP >
      • Residential
    • 3C-REN >
      • Residential
    • BayREN >
      • Business FLEXmarket
  • Providers
  • FAQ
  • Contact