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Historically only available to the largest energy players, Demand Side Response (DSR) is now opening up to business consumers and smaller generators.
As a result, you can access a range of benefits for your business if you are able to switch to on-site generation – or reduce consumption – for short periods. These benefits include:
The largest energy transmission and distribution charges are based on consumption levels at peak times, as is the recently introduced Capacity Market levy. But by participating in DSR, you’ll be importing less during peak periods, so will significantly reduce these charges.
When you reduce the level of power you’re importing, you can sell back the volume you’ve already purchased – but aren’t using – at peak market prices. This can provide a valuable source of income.
Depending on the nature of your operation and generation assets, it’s possible to participate in appropriate National Grid balancing schemes, which pay you to reduce import demand for short periods. These range from Short-Term Operating Reserve (STOR) to Firm or Enhanced Frequency Response (FFR/EFR).
There’s a common misconception that participating in DSR will put stress on a business’s on-site generation assets, making you less able to respond in a real emergency. But the reality is by running your on-site generation assets more regularly, you can be confident they’ll be well maintained and fully functioning – and therefore better able to respond when you need them most.
At npower Business Solutions, our Energy HQ team finds that customers adopting a range of complementary DSR services can typically earn between £60,000-£80,000 per megawatt per year – and sometimes considerably more. To find out more, talk to our team.