With the temporary suspension of the Capacity Market and Ofgem looking to shift network and distribution charging models away from peak consumption periods, businesses could be forgiven for feeling uncertain about the future of Demand Side Response (DSR).
But while there are certainly question marks over some existing sources of revenue and cost savings, there are also new opportunities opening up for businesses willing to be flexible around consumption.
Distribution Network Operators (DNOs) are already looking to source flexibility from business consumers to help balance local networks.
Calls for 12.5MW in the North
For example, Northern Powergrid is asking for consumers who can provide at least 100kW of flexible power – or at least 200kW from aggregated portfolios – to register for DSR contracts for delivery between October 2019 to March 2020.
The DNO is looking to secure up to 12.5MW of capacity in urban areas across its region, including in Sheffield, Newcastle, Hull and York.
And in London, the Flex London project is looking to source up to 1GW of flexible power from consumers.
Matchmaking to share investment costs
The initiative has been instigated by the Mayor of London in conjunction with DNO UK Power Networks, and is looking to encourage more potential DSR participants to come forward.
Among the proposals on offer is a matchmaking service that could help to pair up organisations who could benefit from shared resources – for example battery storage or an EV charging infrastructure.
Elsewhere, UK Power Networks, which covers the South East, will be inviting tenders for 200MW of DSR for winter 2019/20 and 2020/21.
Using flexibility to lower bills
Like many DNOs, its aim is to use flexibility to balance its network, rather than investing in costly reinforcement that will result in higher bills to consumers.
You can find out more about participating in DSR in our DSR Clinic hosted by Energy Live News.
Or talk to a member of our DSR Team at Energy HQ, our innovative energy solutions division. You can reach them via email at firstname.lastname@example.org or by calling 0800 994 9382 or visiting the Energy HQ website.