Demand Side Response (DSR) is designed to help the National Grid balance the energy system and can provide a range of benefits to businesses.
DSR encourages businesses to alter their energy usage in real-time at periods when demand levels in the UK are at their highest or when prompted by network operators; this reduces the strain on the National Grid and can provide financial benefits to consumers.
The system allows businesses to earn money back from the grid by being flexible with their consumption, or by switching to on-site generation methods at peak times. By doing so, businesses will also save on import costs.
DSR can also work in reverse, as sites are rewarded for increasing their consumption levels when electricity is in abundance and therefore cheaper, while helping to balance the system.
Demand Side Response was initially targeted at large energy users but is open to all commercial consumers and small generators. Businesses who are flexible in terms of usage, or make use of on-site generation/ battery storage technology can benefit in terms of; saving on non-energy costs or receiving income via a balancing arrangement with the National Grid.
Depending on the arrangement, any shift in energy patterns can last for a few seconds or a few hours and can be automated to simplify the entire process. This reduces peak import charges such as Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) charges, these savings can range between £45k and £70k per megawatt, per year.
Once an arrangement is made with the National Grid, revenue will be generated by being open to flexibility, even if you are not prompted to make any changes. Participation can result in an income of between £8k and £100k per megawatt, per year.
Any excess capacity generated on-site can also be exported to the grid for a premium, providing an additional income stream. However, generation and battery storage technology is not mandatory to participate in DSR as long as you are able to adjust usage between peak times, typically weekdays between 4pm-6pm and cold periods during winter.
If you would like to learn more about how your business could benefit from Demand Side Response then feel free to get in touch with Apollo Energy by calling us on 01257 239500 or filling out the contact form here.