Demand Side Response (DSR) | Reducing Demand to Reduce Costs

*Source: National Grid

Demand side can be defined as flexible load or generation connected to the distribution network (The National Grid).

Response is a deliberate modification in electricity consumption or generation in response to an external signal.

What is Demand Side Response?

Demand response is a key growth market in the UK, as it helps businesses become smarter and maximise additional revenue from existing infrastructure, hence giving high energy users more control over their energy spend and more capital to invest back into their business. Businesses have already earned more than £100m by providing capacity market savings since 2014.

DSR is the new chapter of energy efficiency as it incentivises end-users to temporarily shift their non-critical energy systems such as heating, cooling and lighting at peak times in the UK. Businesses can also increase their electricity demand at times, for example on windy and sunny days when demand is low but renewable output is high.

DSR increases grid reliability, by smoothing out supply from renewable energy suppliers connected to the grid. So, on less windy and cloudier days, the grid demand can be balanced to meet the intermittent renewable supply.

There are several demand management services to support large and industrial energy users such as TRIADCapacity Market, STOR, FFR and SPOT Optimisation.

Can my business participate?

Large and industrial businesses tend to participate in DSR, as they have a high electricity consumption and peak demand. Half-hourly or pass-through energy contracts provides flexibility for the energy consumers to turn down, turn on or change production from on-site generation.

What are the benefits?

Flexible

  • There is flexibility for businesses to ensure a more cost-effective and environmentally friendly electricity system.[1]
  • Businesses can reduce, increase or shift their electricity demand when needed.
  • There is more control over the network.

Financial incentives

  • Maximise additional revenue from existing infrastructure.
  • The Capacity Market ensures there is security of electricity by providing a payment for reliable sources of energy.
  • However, there is slight investment required from your side into non-core, energy infrastructure projects.

Environmental impact

  • Reduce the amount of power plants in exchange for increased renewables and electrification.
  • Reduce carbon footprint and improve the Corporate Social Responsibility of large and industrial businesses.

How can we support your business with DSR services?

At Nationwide Utilities, our experienced Energy Brokers define a tailored energy reduction plan to suit your business requirements. Thousands of flexible clients are proactively improving their Corporate Social Responsibility by reducing the need for traditional power plants and enabling more energy generation.

 

Interested in DSR? Speak to one of our Energy Specialists which can assist you further in regard to identifying the most suitable DSR services for your business on 0800 862 0861, or send us a message.


[1] http://nationalgridconnecting.com/why-big-business-should-consider-dsr/

 

 

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