Demand Side Response (DSR)
Mitigate the rising cost of energy and generate revenue by helping balance the electrical grid.
What is Demand Side Response?
Demand Side Response services emphasise the intelligent use of energy, combined with onsite generation to help balance supply and demand on the National Grid.
Demand side responders can activate generators, utilise battery storage devices and employ a variety of load shifting techniques to reduce consumption during times of peak system stress on the network. In exchange, responders can avoid some non-energy charges and generate revenue streams for helping to provide stability to the system.
Why was Demand Side Response introduced?
Demand for electricity is increasing, but many older and more polluting forms of generation are being phased out. This gap in supply is gradually being filled with more renewable sources like wind and solar. However, as these forms of generation are more intermittent, managing this transition requires a delicate balance to ensure there is sufficient affordable electricity, when it's needed most.
The Association for Decentralised Energy (ADE) estimates that 16% of the UK’s peak electricity requirement could be provided by DSR responders, saving consumers approximately £600m by 2020 and £2.3B by 2035.
Who can participate in Demand Side Response?
If your business is a large scale industrial or commercial user with energy intensive processes, and can quickly modify energy consumption patterns in response to network signals, or if you have energy assets such as onsite generators or battery storage capacity, then you could be eligible to participate in demand side response.
Responders can optimise energy usage and provide additional capacity, helping to smooth out the supply from unpredictable renewable sources of generation. The National Grid compensates responders for providing a variety of grid-balancing services to soften the peaks and troughs of the energy supply and demand dynamic.
What are the benefits of Demand Side Response?
Demand side response benefits include:
- Optimising energy consumption
- Helping to balance the energy grid
- Reducing some non-energy costs
- Creating revenue from onsite energy assets
Through the FIT scheme, businesses of all sizes that generate their own energy (e.g. solar, wind, hydro, and biomass) can both reduce the costs of their utility bills and receive payments for feeding excess energy back to the grid.
How can we help your business with DSR?
If you’re on a half-hourly (HH) or pass-through contract and your business has the ability to modify your electricity demand in response to system operator signals, we can advise you on the best solutions to optimise your electricity usage. With our guidance, we can transform demand challenges into financially viable opportunities to increase revenue and corporate social responsibility.
Ready when you are.
Get in touch today to speak with an advisor about how to make the most of your existing energy assets to cut costs and optimise efficiency specifically according to your budget and objectives.
