On November 5, 2015, The Guardian reported National Grid had used: ‘Last resort emergency powers, to tell companies to reduce their electricity usage in an effort to avoid the risk of blackouts.’ The news confirms a worrying UK power shortage, but behind the trends exists a huge opportunity.
How can Demand Side Response make my business money?
National Grid, ‘Asked firms to reduce their power demand immediately, issuing a so-called demand-side balancing reserve (DSBR) notice to companies that have signed a contract to say they will take part in the demand reduction scheme’. Under such schemes, The National Grid contacts businesses that have agreed to reduce their power usage when electricity demand peaks.
When asked, participating firms reduce their power consumption, or even turn plant off, thereby minimising the power they use. In return, National Grid pays them a set figure, defined in a contract agreed between both parties.
The net result is extra income for participating firms, reduction of stress on the Grid and, all being well, a sufficiently powered UK, where blackouts and power outages don’t occur.
How does it work in detail?
Anticipating this winter’s power shortages, our colleagues at WEMS have already created our guide to Demand Side Response (DSR).
It explains in detail what DSR is, how it affects your business and how you could make money too. Given the trends identified by The Guardian, there has never been a better time to get ahead of the game, and become part of the ‘virtual power plants’ that are contributing to keeping our lights on.
You need the right technology to take part in DSR
Never before has such a telling opportunity for companies to get involved existed in the UK. However, without the right technology in place you will be unable to respond automatically to the notice from the Grid to manage your demand.
We believe every firm out there should consider whether DSR is an option. Together, we can create a more sustainably powered UK.
It goes to show the future UK energy sector needn’t be about the Big 6. Rather, a collective effort towards paid-for energy efficiency will define the future.