Why use Energy HQ for DSR services?
- Complexity simplified – With unparalleled insight into the wholesale market, regulatory change and on-site installations, our DSR team of experts can manage and automate all DSR activity on your behalf, whilst enuring you remain in full control (but only with your full consent)
- Wide range of DSR products – We support DSR solutions across a wide range of assets and activity, enabling access to multiple income streams and ensuring your solution delivers a reliable source of revenue
- No conflicting contracts – as both an energy supplier and DSR provider we can ensure you do not breach any supply terms
- Support for investment – we can help with business case development and advise on future regulatory implications
- Aggregation service – where applicable, you can access National Grid balancing schemes that may normally be outside of scope, via our aggregation service
Our DSR Partnership
We work with you to understand your objectives and constraints, then perform targeted data analysis for your site(s) to produce a bespoke proposal. This is then refined based on customer feedback.
Should you decide to proceed, a contractual agreement will be signed and a more detailed project plan developed, including timescales for delivery. If you are not ready to commit to a full partnership at this stage, we can work on a consultancy basis to deliver DSR feasibility studies for your site portfolio.
Once a contract has been agreed, Energy HQ will finalise all desktop analysis, value forecasts and timelines before project managing the installation of any assets (if necessary).
Energy HQ will remotely optimise your flexibility, accounting for emerging market developments and our market-leading industry forecasts. Our DSR team will create a strategy to maximise value from flexibility/specific assets.
Monitoring and reporting
We will monitor and measure the ongoing benefit generated by your flexibility and adjust your strategy in-line with market developments.
Demand Side Response (DSR) is an intervention by consumers to flexibly alter consumption patterns in real-time during periods of stress on the main electricity system, or in response to network operator price signals.
DSR enables businesses to save on import costs as well as generate income by reducing or shifting consumption – or switching to on-site generation – at opportune times. It can also involve increasing consumption at times when the system has too much capacity.
National Grid uses DSR as a tool to help balance national energy requirements. Through various balancing schemes, consumers are incentivised to ‘flex’ their electricity use at required times to resolve issues on the grid. The Association for Decentralised Energy (ADE) calculates that 16% of the UK’s peak electricity requirement could be provided by businesses being flexibile with their energy demand, saving consumers £2.3 billion by 2035.
This helps to ensure a secure, sustainable and affordable electricity system. It can help soften peaks in demand and fill in the troughs, especially at times when power is more abundant, affordable and clean.
DSR can help you access a range of benefits, from significantly reducing peak non-commodity charges to earning revenue by participating in National Grid balancing services.
With Energy HQ, you can also generate additional value for these operations by selling back unused volume at peak market prices through the day ahead and within day markets. Think these market names have changed
In addition, if you are using your on-site generation/storage assets more regularly, you will increase resilience and be better able to respond when you need them most (for example, in a power cut).
We are proud to be a founding member of the ADE’s voluntary code of conduct, Flex Assure. Created in partnership with aggregators and industry stakeholders, it holds providers to account over a series of issues. Full details can be accessed here.
This will depend on the types of benefits you have decided to focus on. But typically, at times of system stress or when asked to do so by your DSR partner and/or National Grid, you would:
1) Flex (i.e. increase or decrease) your energy intensive processes for short periods, for instance cold storage or certain production or processing activities
2) Switch your power source to existing generation assets and/or start exporting from that asset to the grid
3) Utilise energy storage to dynamically flex your power requirements.
An intervention could last for anything between a few seconds to a few hours, depending on the services/benefits you have agreed on.
The good news is that once you agree when and how your business can respond, the whole process can be fully automated and implemented by experienced DSR professionals on your behalf, without requiring any action from you.
You will then save on peak import charges, e.g. Distribution Use of System (DUoS) and Transmission Network Use of System (TNUoS) charges.
If you are participating in National Grid schemes, you can also earn revenue both for being available – even if you are not called upon – and for any volume you flex (i.e. turn down or up) when asked to do so for short periods ranging between one second and four hours.
If you have any spare capacity from on-site generation or battery storage, you could even export some of that power – providing your business with yet another potential income stream.
With Energy HQ, you can earn additional revenue by selling back the volume you do not use but have already purchased and often at peak market prices via Wholesale Market Access.
Leveraging this wide range of benefits can be the difference between a good business case and a great one and provides a low-risk revenue stream to build a proposal on.
You do not need to have generation assets or battery storage on-site to participate in DSR. You can load manage to reduce consumption away from peak charging times – typically between 4pm and 6pm Monday to Friday over the winter season (November to the end of February). However, many businesses do utilise some form of energy generation or storage assets to support their DSR strategy and increase the savings and/or revenue they are able to make.
It is possible to hire diesel generators for the winter period and make a healthy profit after covering costs. Installing on-site generation or battery storage assets require a longer return on investment, but the numbers often stack up, so it is worth investigating.
Our DSR experts at Energy HQ can help you assess your options, working with our solutions partners to develop compelling business cases. Often the optimal solution varies site by site and can include a combination of options.
In partnership with the Association for Decentralised Energy, npower Business Solutions is proud to be a founding member of the Flex Assure Code of Conduct. Only DSR aggregators with high standards of customer service and technical diligence can become members of Flex Assure, setting the industry standard in credibility and responsibility.