How to access the Balancing Mechanism as an Embedded Generator

Steps to participate

A simple guide to your BM participation options, what’s required and how to get to market faster. If you generate electricity, you can access the Balancing Mechanism (BM) in different ways.

Step 1: Connect and export electricity

Before you can participate in the BM, your asset must be able to export electricity, this typically includes:

A connection agreement from your Distribution Network Operator (DNO)
A Statement of Works or transmission assessment (if required)
An Embedded Agreement (BEGA for direct market access) connection agreement
G99 compliance
Commissioning

Important: Being connected does not mean you can participate in the Balancing Mechanism.

Step 2: Chose your option to Market

There are three main options to access the Balancing Mechanism:

Option 1: Participate directly (BEGA) - You participate in the BM yourself, best if you:

Need Transmission Entry Capacity (TEC)
Want direct control trading capability
Must meet full Grid code compliance and operational requirements (higher complexity)

Option 2: Third Party (Supplier / BELLA) - Another organisation participates on your behalf, best if you:

Do not need a TEC
Prefer to manage BM participation
Want a simpler operational model

Option 3: Aggregator / Virtual Lead Party (VLP) - A flexibility provider represents your asset in the market, best if you:

Want the simplest option
Have smaller or less complex assets
Prefer optimisation and trading managed externally

Step 3: Applying for a BEGA

A BEGA enables eligible embedded generating units to participate directly in the Balancing Mechanism. Your connection agreement allows your generating unit to connect to and export onto the electricity network. A BEGA establishes the additional commercial and operational arrangements required for direct participation in the Balancing Mechanism.

Before you apply

You should notify your DNO that you intend to apply for a BEGA. If you are applying for a new connection and require a BEGA, please refer to the Connections Offer Process guidance.

If you have an existing connection offer, or a connected asset that you now wish to participate directly in the Balancing Mechanism, you can submit a BEGA application through the Connections Portal. Before submitting your application, you should be prepared to provide information about your project or asset, including:

project capacity (MW)
technology type (for example, wind, solar, battery or hydro)
connection location
expected connection or energisation date
relevant technical information relating to your generating unit and connection
confirmation of whether any changes are being requested to your existing connection arrangements

What happens next?

NESO will review your application to confirm that it is complete and contains the information needed to begin the onboarding process.

Where required, NESO will coordinate with the relevant network company as part of progressing your application. The activities required will depend on the characteristics of your project and the information already available. Wherever possible, existing connection approvals and technical information will be used to support the process and minimise unnecessary duplication.

Following acceptance of a competent application, NESO will progress the BEGA onboarding process in accordance with the applicable CUSC requirements and associated timescales

FAQs

Step 4: Understanding the journey to BM participation

Direct option (BEGA (Option 1))

Typical journey

Connection
BEGA Application
BEGA Countersigned
Compliance
Operational Readiness
BM Unit Registration
Live Participation

What each step means

Many activities can run in parallel, please see the compliance flowchart for how these stages interact and where dependencies apply.

BEGA Agreement – Establishes your contractual relationship with NESO
Compliance – Demonstrates your plant can operate safely within the system and modelled accurately by NESO
Operational Readiness – Includes metering, communications and data transfer
BM Unit Registration – Registers your asset for dispatch and settlement

Indirect Options (Third Party (Option 2) / Aggregator (Option 3))

Typical journey

Connection (DNO)
Contract with provider
Technical onboarding
BM participation via the provider

What really drives BEGA compliance timescales?

Timescales will vary depending on your specific circumstances, including:

Your Power Station size, Power Generating Module type(s) and connection arrangement
The completeness of your BEGA application and compliance submissions (where applicable)
Dependencies on other organisations (supply chain, contractors etc)
How you manage dependencies and parallel activities
Timely and agile submissions of compliance data (not leaving it to the last minute to allow sufficient time for review/feedback/resubmission)

Critical Path vs Parallel Activities (what not to delay)

Customers often assume that everything must happen in sequence. In reality, many steps can run in parallel see our compliance flow chart.

Compliance flow chart

You CAN start these before a BEGA is counter signed:

Technical compliance activities
RMS and EMT model development
Metering procurement and installation
Options-to-Market discussions (choosing and setting up how you will access the BM, including working with suppliers or aggregators where relevant)
BM design discussions (defining how your asset will be set up and operated within the BM, including BM Units, communications, and data flows)
Communication setup

Typically required before BM participation:

BEGA contract (counter signed)
Compliance submission acceptance – issue of Interim Balancing Compliance Notification (IBCN) (see Technical Compliance)
Metering installed and registered
Communications tested
SORT upload completed

You can start preparing for BM participation before your BEGA is complete, as progressing activities in parallel is essential to reducing timescales and ensuring a smooth route to market. Please use our SORT process flow chart to better understand the sequence of activities, key handoffs between organisations, and where you can take early action.

Expand our SORT process flow chart

Why this matters: Understanding what can run in parallel can significantly reduce time to market.

BEGA Grid Code Compliance Journey

NESO compliance focuses on system operation, not just connection. Requirements are defined by the Power Station size (Large, Medium, Small) and Power Generating Module Type (A, B, C, D).

Typical requirements include but are not limited to:

Single line diagrams
Protection settings
Plant data and operating limits
RMS and EMT dynamic models (where applicable)
Controller settings
Compliance Process

Compliance flow chart

Key Point: Even if you have provided similar information to the DNO, NESO still require an independent submission to ensure the plant response can be modelled accurately to ensure system security and economic operation.

Balancing Mechanism (BM) Registration Journey

Before you can participate in the Balancing Mechanism (BM), your asset must be registered so it can be dispatched and settled correctly. To start, you will need to apply through Balancing Mechanism Wider Access (BMWA) using the Single Markets Platform (SMP). BMWA makes it easier for new and existing providers to access the BM and participate in the market.

Using the Single Markets Platform, you will:

Create your account
Submit your application
Manage your onboarding process

SMP User Guide

Note: If you are working with a supplier (option 2) or aggregator (option 3), they may complete this step on your behalf.

What this step Involves

BM Registration:

Enables NESO to send instructions to your asset
Defines how your asset operates in the BM
Ensures that you are paid correctly for your actions

What you need to do

Set up how you will participate

Confirm if you are participating:

Directly (Option 1)
Through a supplier (Option 2)
Through an aggregator (Option 3)

Define your BM Units

Decide how your asset will be structured in the BM
Group assets into “BM Units” (how the system sees your plant)

Submit your registration data

Provide or confirm via your provider:

Asset details and location
Metering arrangements
Operational characteristics
Party roles and responsibilities

Tip: Incomplete or inconsistent data is a common cause of delays

Set up metering and communications

Install and register compliant metering
Set up systems for:
Sending data
Receiving dispatch instructions
Complete required testing

Complete testing and validation

Confirm data flows correctly
Ensure systems align across parties (NESO, Elexon, third parties)
Demonstrate your asset responds as expected

Go live

Once approved:

Your BM Unit is registered
You can receive dispatch instructions
You can start participating in the BM

Key Points

Elexon manages registration and settlement
NESO supports operational setup
Many steps can run in parallel with compliance and readiness activities

Futher information on Wider Access (option 2 and option 3)

Common pitfalls

Common Pitfalls (what slows customers down)

Waiting for BEGA before starting other activities
Assuming connection = BM readiness
Submitting incomplete or inconsistent data
Late or delayed submissions
Not understanding compliance requirements
Lack of coordination across parties (e.g. DNO, NESO, Elexon)
Delays in uploading required documentation (e.g. SORT submissions where applicable)

Roles and responsibilities

Roles and Responsibilities

You (the customer):

Read, understand, and deliver to the obligations contained within your CUSC contract
Provide complete and accurate information in a timely and agile manner
Meet technical and compliance requirements
Manage third parties
Track and progress your application

NESO:

Assess applications
Define requirements
Provide guidance on what is required and acceptance criteria
Coordinate NESO processes
Help identify dependencies and next steps

Other Organisations:

DNOs – Embedded Network Connection
Elexon – BM registration and settlement

How NESO can help

If you:

Have a connection agreement with NESO
Have a commissioned asset
Have completed or are progressing G99 compliance with your DNO
Are considering your route to market

NESO can:

Confirm whether a BEGA is required
Help you navigate applicable requirements set out in the Grid Code and related documentation. (You remain responsible for meeting those requirements in full)
Identify your critical path
Highlight what can run in parallel
Coordinate your next steps across organisations

Not sure where to start?

It helps to know:

Are you already connected?
The size and type of your Power Station and Power Generating Module(s)
Do you want direct BM participation?
Do you need a TEC?
Will you use a third party?

Need support?

If you have questions about your journey to BM participation or are unsure which team to contact, email [email protected] and we'll help connect you with the right support.

Connection Compliance Flowchart