Demand-side response is about intelligent use of electricity, rather than how it’s generated. It increases grid reliability by helping to balance out supply and demand due increased consumption, or reduced generation from unpredictable renewable energy sources.
As there are so few times in the year when supply struggles to meet demand, rather than build new power plants which may rarely be used, it is more cost effective and makes better use of existing resources, for large industrial and commercial energy users to modify their demand during these peak usage periods in order to balance the system.
It is generally older, less efficient fossil fuel generators which are required to provide power to meet these occasional demand spikes. Demand side responders can help to limit the amount of time these polluting generators are required to run and maximise the use of clean and renewable generation instead.
If you are on a half-hourly or pass-through contract and your business has the ability to modify your electricity demand in response to system operator signals, then we can advise you on the best solutions to optimise your electricity usage. Through efficient balancing and identifying opportunities in your consumption patterns, we can help your business mitigate rising energy costs and reduce carbon emissions.
As the price of wholesale electricity is higher during these peak usage periods, demand side response providers can achieve significant savings on their energy costs by reducing demand in these windows of system strain.
To find out more about the ways your organisation can benefit from shifting demand to help balance, contact out team today.
We are a London-based energy consultancy with over 19 years’ experience. We work with hundreds of businesses over the UK to reduce their energy costs, consumption and improve their overall efficiency.
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