Posted on: 21/09/2015
Businesses able to turn energy consumption into an asset
Independent energy supplier SmartestEnergy is launching a dynamic new service to enable customers to benefit from reducing demand at peak periods.
The company has agreed to provide Demand Side Response (DSR) capacity in the UK Government’s Capacity Market auction expected in January 2016.
Customers signing up to its new Smart DSR service will receive payments in return for reducing consumption when demands on the grid are high. They can get paid for taking part even if they are not called on to cut demand, and the service also offers wider energy saving and efficiency opportunities.
Benefits of working with a partner
Customers are grouped together to share the obligations and benefit from a partner that manages the whole process from start to finish.
Chief Executive Robert Groves said helping customers become smarter consumers of energy through the launch of Smart DSR was a natural development for the company.
“Demand side response offers an exciting opportunity for the businesses we work with to turn their energy use into an asset and make significant savings,” he said.
“At a time when larger businesses are increasingly looking to be more responsible over their energy use, it also has wider benefits in terms of making energy demand more responsive and sustainable, reducing CO2 emissions and helping the nation avoid the risk of blackouts.”
Support from leading technology provider
SmartestEnergy is licensing software from EnerNOC, a leading global provider of energy intelligence software, to support the new service.
“EnerNOC’s software is used around the world to ensure that companies that participate in demand response receive the maximum value. We look forward to working with their technology and their support teams to help our customers achieve their energy strategies,” said Groves.
The service covers all aspects of taking part in demand response including technical set-up and testing of equipment and software required, performance monitoring and payments.
Customers can opt to reduce their commitment to just peak hours in the winter months and stay in control of what response they provide at any time.
“It is designed to be flexible so if a customer who has signed up can’t reduce demand for whatever reason, this can be covered within the portfolio,” explained Groves.
Why smart businesses are looking to DSR
A significant proportion of electricity demand in many companies can be flexible through the powering down of part of their operations, shifting them to a different time in the day or using on-site generation.
“Many customers are already exploring forms of energy efficiency and we want to help them realise commercial benefits.”
For example, refrigeration equipment in cold stores can often be switched off for several hours without temperatures levels rising too high, or companies can align emergency generation testing and maintenance to test under load and earn payments.
National Grid has said it is keen to see a much greater role for DSR to help ensure a secure, sustainable and affordable electricity system.
It has been estimated that if just 5% of peak demand is met by DSR solutions it could benefit consumers by approximately £790 million.