Demand Side Response - Are You Missing Out On £90,000 per MW per Year
Demand Side Response
Demand side response is the National Grids scheme where customers are financially incentivised to reduce or shift their electricity use during peak times. National Grid, in its role as the system operator must maintain the security of the electricity network by balancing supply and demand on a second by second basis. Although National Grid has a multitude of different ways to achieve this, one such way they can achieve this is through ancillary services from users already on the network.
"Catalyst works with a multitude of commercial aggregators of these National Grid Demand-Side Response schemes in order to provide full access to the different types of schemes now available"
Together, we provide a wide range of technical services for demand side response management, and we work closely with our customers to define strategy that provides the most benefit or value.
Demand Side Response Consultants
Having no single association to any one provider we are able to provide consulting advice to companies looking to understand the most suitable scheme for their business needs. We cut through the myriad of different solutions to identify opportunities for demand shifting potential. The range of revenue streams that are potentially available makes it possible to put together a diverse range of potential business models for demand side response and with the advent of battery storage various combinations of these types of schemes will become more practical.
In order to facilitate DSR schemes it is necessary to have a powerful monitoring and control system on site, which can be integrated to high energy consuming equipment which can be managed remotely under such schemes. Often we are able to provide this solution at no cost to our customers; however the level of data available can also be an instrumental insight into how energy is consumed on site. Bolstering or even replacing any previous monitoring and control equipment.
Reducing DUoS Red Band Charges and Triad Management
Distribution Use of System (DUoS) charges are levied by the UK’s regional Distribution Network Operator (DNO) and has a significant impact on electricity costs. These costs go towards the operation, maintenance and development of the UK’s electricity distribution networks. During the weekdays certain times of the day are considered peak times (Red Band). The cost for DUoS is set by the DNO so the only way to reduce the impact of the DUoS charge is to be smarter with how and when energy is used.
Triad refers to the four-month winter period, during which National Grid looks back to find the three half-hour periods when electricity demand was highest in the UK. These are known as the 'Triad' demand periods. Triad Management is a way for companies to predict when these windows will be and reduce their electricity demand during these periods in order to avoid significant fees. National Grid uses these Triad events to incentivise large energy users to shed or shift load during the peak periods of demand.
The ability to practice Demand Side Response and avoid high price periods can be facilitated through these solutions and consumption can either be boosted to take advantage of off peak charges or reduced during these high cost periods.
How Does Demand Side Response Work?
Our customers are paid by the National Grid for each kilowatt of demand that can be temporarily turned down, during peak demand times. It is more economical for National Grid to pay businesses to reduce demand than to pay for peaking power stations to be on standby during these time periods.
Revenue Opportunity Potential
National Grid has recently responded that demand response could play a larger role in balancing the grid than traditional large generators over the coming years as they expect to invest up to £400m p.a by 2020 on Demand Side Response (DSR) schemes.
Our clients receive £90,000 of recurring revenue per Megawatt.
Customers with their own generation plant or with access to private generation can also benefit from demand side management. By taking grid prices when the market is low and when they are high, son site generation can be switched on or even diverted back into the national grid. A range of services are now available from National Grid to encourage turn down and reward additional capacity when required.
Enhanced Frequency Response
Enhanced frequency response (EFR) is a new service, defined by National Grid as frequency response that achieves 100% active power output at one second or less of registering a frequency deviation within the grid.