Demand Side Response or DSR is the National Energy System Operator (NESO) scheme where customers are financially incentivised to reduce or shift their electricity use during peak times.
NESO, 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 NESO has a multitude of different ways to achieve this, one such way is through ancillary services from users already on the network.
“Catalyst works with a multitude of commercial aggregators of these NESO 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.
Get Paid to Reduce Demand
Our customers are paid by NESO for each kilowatt of demand that can be temporarily turned down, during peak demand times.
No Capital Cost Solution
Our solution is fully funded so we take care of the onsite monitoring equipment needed in order to access these types of schemes.
Avoid Peak Charges
With DSR services you will be asked to reduce demand or start-up standby generation at times of peak demand on the network. These reductions also avoid high non-commodity cost periods.
Demand Side Response Schemes
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.
Additional Benefits
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 energy monitoring and control equipment.
Demand Side Response Schemes
Triad Management and Peak Demand Cost Avoidance
Regardless of any changes to how DUoS or Triad charges are accounted for, winter peak demand periods will remain as the most costly period for energy intensive users.
But at the present moment 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 weekdays, peak demand periods attract significantly higher network charges.
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 NESO 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.
NESO 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 NESO for each kilowatt of demand that can be temporarily turned down, during peak demand times.
It is more economical for NESO to pay businesses to reduce demand than to pay for peaking power stations to be on standby during these time periods.
Revenue Opportunity Potential
NESO recognises that demand response plays a key role in balancing the grid as the energy system decarbonises. As more renewable generation comes online, DSR schemes are growing in importance — offering businesses increasing revenue opportunities.
Supplementary Power
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, so site generation can be switched on or even diverted back into the national grid. A range of services are now available from NESO to encourage turn down and reward additional capacity when required.
Frequency Response Services
NESO procures several frequency response services that businesses can access through aggregators. Dynamic Containment (DC) is the primary fast-response product, providing automatic response within one second to contain frequency deviations within the grid. Firm Frequency Response (FFR) covers slower response timescales. Both services are tendered regularly and can provide an additional revenue stream for businesses with flexible loads or on-site generation.
Demand Side Response - Energy Trading
The ability for customers to be more flexible with consumption has never been greater with the lowered cost of technology companies have more access to onsite generation solutions alongside battery storage. For example most energy-intensive businesses have a backup generator or some form of on-site generation or even a battery installed to help them shift the load.
This greater flexibility can create further financial benefits and provide access to short term energy markets and provide balancing services for maximum value.
Giving consumers the ability to purchase their power at its cheapest in the intra-day and day-ahead markets, whilst trading their flexible demand and excess generation.
Day Ahead Markets
With advanced flexibility customers can access the day ahead energy markets with confidence.
Intra-Day Markets
Those with the desire can take advantage of the within day market and access market low buying opportunities.
Asset Management
Generation assets can be used to further enhance the ability to buy or sell into the near term energy markets.
Sell Excess Energy
Those that have spare capacity can sell back at a time that generates the highest amount of revenue.
[sc_fs_multi_faq headline-0=”h2″ question-0=”What is Demand Side Response?” answer-0=”Demand Side Response is designed to help the National Grid balance the energy system and can provide a range of benefits to customers such as the avoidance of non-commodity peak demand costs and also add an additional revenue stream for avoiding peak periods. ” image-0=”” headline-1=”h2″ question-1=”how does demand side response work?” answer-1=”Demand side response works to help maintain the national electricity balance of supply and demand during fluctuations in the electricity system or during high demand periods. By participating in these schemes business energy users can avoid high peak demand costs and obtain a revenue from National Grid for help balance the network system. ” image-1=”” count=”2″ html=”true” css_class=””]
Further reading: kVA Charges Explained covers how right-sizing agreed capacity sits alongside demand-side response as a practical lever for cutting peak-related cost.