Demand Side Response
UK POWER RESERVE AND TOTAL GAS & POWER HAVE UNITED TO BRING DEMAND SIDE BALANCING RESERVE SERVICES TO THE UK ENERGY MARKET.
WHAT ARE DEMAND SIDE BALANCING SERVICES?
Demand Side Balancing Services (DSBS) are National Grid reserve services where businesses are paid if they are able to vary their demand on grid electricity at busy times when the national demand for energy is at its peak.
National Grid maintains a reserve level of generation to ensure that the lights stay on even when demand for energy is extremely high compared to supply. In previous years this reserve level has remained around 15%. However, it is now expected to fall as low as 5% over the next few years, so the risk of a blackout is greater than ever.
Demand Side Balancing Services (DSBS) provide an additional last line of defence against supply interruptions, giving National Grid the option to reduce demand and increase generation when facing a supply shortfall. National Grid is now looking for more companies who are willing to participate in the service in exchange for payment for the energy.
WHAT ARE THE BENEFITS?
With aggregated services offered by UK Power Reserve and Total Gas & Power, businesses have the opportunity to earn significant additional revenues in the form of availability and utilisation payments. Each client’s site/ capability will be assessed on a case by case basis and typically sites with greater than 400kW of capacity can return a benefit.
WHO CAN PARTICIPATE?
National Grid’s new DSBS offers potentially large rewards in the form of both upfront payments and after-the-event payments to a wide range of energy consumers and generators who can modify their activities. Participants can include:
- Backup Generators: switching to backup generation when required.
- Load Shedders: reducing demand by turning off equipment or delaying high consumption processes.
- Embedded Generators: small generators who commit to providing power when needed.
Total Gas & Power’s broad market presence enables aggregation of small units from a wide range of sectors. Each client’s capability is assessed on a case by case basis and typically sites with more than 400kW of capacity can benefit from National Grid’s demand services. Ideally this would be fresh capacity and not already used in connection with Triad avoidance or any other balancing services with National Grid.
THE POTENTIAL FOR PROFITABILITY
UKPR DEMAND SIDE BALANCING SERVICES
BASED ON AN OFFERING OF 1MW OF GENERATION OR DEMAND REDUCTION CAPACITY
|PRODUCT||GUIDE AVAILABILITY REVENUE||GUIDE UTILISATION REVENUE||GROSS REVENUE PER MW||
|Short Term Operating Reserve||STOR||£14,000||£22,000||£36,000||10-150||Balancing Reserve procured through competitive tenders. Contracts last for up to 2 years.|
|Capacity Market||CM||£23,000||£0||£23,000||RARE||Revenue capacity for times of high demand, with an annual auction for either 1, 3 or 15 year contracts|
|Firm Frequency Response||FFR||£35,000||£2,000||£37,000||6||Fast responding contract for quick but short responses to change frequency. Competitive tender|
|Demand Turn Up||DTR||£1,000||£27,000||£28,000||100||Product for consuming excess wind and solar generation. An annual tender for an annual contract. This product is currently in development phase with National Grid.|
All figures are indicative and subject to change.
Services can be combined and/or operated over different seasons in the calendar year.
ABOUT UK POWER RESERVE
UK Power Reserve is the leading independent developer and operator of flexible, smart and affordable power generation. From site purchasing to operations and plant design to grid connections, we bring a unique expertise to the UK energy market. We participate in a variety of Energy Balancing Services and provide third-party aggregation and Demand Side Response (DSR) management and trading services.
UK Power Reserve’s portfolio is the size of a large scale CCGT (combined cycle gas turbine) generator but at a much lower cost to the consumer, with a faster-acting response time and a geographic spread across the country rather than a single plant concentrated in one location. It is the largest reserve power portfolio in the UK and places the company amongst the largest independent reserve power providers in the EU. This ensures greater security of supply at lower risk, while delivering affordability and addressing the Energy Trilemma. We consider ourselves to have the smartest power generation capabilities in the UK.
To find out more, please email email@example.com