Why Demand-Side Response?
Why are Demand-Side Response (DSR) Services needed?
The Demand-Side Response (DSR) services offered by ENGIE enable your business to earn additional revenue by helping National Grid to maintain the balance of supply and demand on the electricity network. Changes in the energy market, new technology and the way electricity is generated are driving up both the UK’s need for these services and the ability of businesses to participate.
As the UK moves towards a low-carbon economy, these network balancing services are becoming more important than ever. Recognising this, National Grid has developed a smart, flexible system of balancing services that makes optimum use of the energy resources available and enables businesses to participate in the most efficient, effective and economical way.
What are the benefits to your business?
Participating in DSR services enables you to generate revenue for your business simply by managing your energy consumption or generation in ways that support National Grid. The income-earning potential is significant and, in most cases, no investment or capital outlay is required. If you already have standby generators on site, it’s a great way to capitalise on these often underused assets.
A range of DSR balancing services is available, each with different payment regimes that are related to the required response times and duration of response.
The level of income you can earn is linked to the speed of response required. Frequency Response services, which require instantaneous action in response to frequency fluctuations on the network, pay the highest rates. Reserve services do not require an immediate response, and so offer lower payments. Reserve services are used to maintain the balance of supply and demand.
As a DSR participant, you can choose when to make your services available to National Grid. An availability fee is paid for these periods, and for some services ( e.g DTU and STOR), an additional utilisation payment is made if you are called on to reduce demand or start up standby generators.
2. Avoid peak charges
When you participate in DSR services, you will be called on to reduce demand or start-up standby generation at times of strain on the network. These are the periods when demand is highest, and therefore unit rates and associated charges are at a peak. By reducing load at these times, or by switching to on-site generation, you will avoid the highest charges throughout the year.
3. Improve asset maintenance
To take part in DSR services, you will need to maintain your generation assets in good working order. Before you are accepted as a participant, National Grid will carry out tests on your equipment. Thereafter, your back-up generators, which may previously have been rarely used, will be put to much more regular use, meaning they are always ready when needed and are less likely to fail. DSR payments will help to fund essential regular maintenance of your generators, while frequent operation will keep them in better working order – helping to prolong their life.
4. Enhance your corporate social responsibility
By participating in DSR services, you are playing an important role in helping to maintain UK security of supply while supporting the growth of renewable energy generation. DSR services make National Grid more flexible and responsive, and therefore better able to cope with the increase in renewable energy generation on the network.
DSR participation also incentivises improved energy efficiency, since it requires energy consumption to be carefully managed and reduced at key times. The net result is that your carbon emissions are reduced, supporting your own environmental efforts and helping you to meet regulatory obligations.