Thursday 16 June 2016

Does demand side response make business sense?

Does demand side response make business sense?


Demand side response (DSR) makes sense to businesses.

That’s what a number of firms told ELN at National Grid's Power Responsive Conference in London today.

DSR is a scheme launched by the grid operator which rewards businesses for changing how and when they use electricity.

According to Tom Lee, Energy Contract and Information Manager at Anglian Water, the scheme is an opportunity to protect its sites and give better services to customers as well as enable it to control their prices and lower bills.

Speaking to ELN he said: “We have a lot of stand by generators so those are there principally to protect sites and the services to the customers but they also allowed us an opportunity to participate initially in triad, then in store and now capacity market. It gives us an opportunity to earn an additional revenue stream and that will enable us to control our prices to our customers."

He added the company has a net demand including export of 17MW which Mr Lee claims has reduced 350% of demand leading to a lower charge.

Mark Fitchett, Energy Procurement at INOVYN highlighted his firm has been involved with DSR from the beginning because it has value for them.

He added: “Our involvement in DSR has always been through management of the network through the CEGB [Central Electricity Generating Board] days from the early development to the ancillary services and store so we’ve always had an active involvement because it’s a valued proposition to us.”

Nissan said it joined the scheme as it is important for car manufacturers to work alongside the energy industry.

Francisco Carranza, Director of Battery and Energy Services Nissan said: “Basically we are realising that car companies will de facto be the players so if you are not entering that, somebody is going to do it using your cars. It’s becoming a very important part of our activity, we need to expand, we need to open the eyes and see that the electric cars we have created are opening bridges between automotive and the energy sector."

He believes consumers are the ones who will benefit the most from DSR.

Mr Carranza added: "The benefits for this at the end are going to be for the consumer because they are actively contributing to a more stable grid, they are contributing to a more affordable renewable generation because all of us are going to contribute in this electricity, it is going to be cheaper, the grids are going to be more efficient and the fact of owning an electric car is going to be more affordable because you are going to get benefits back."

Written by

Bruna Pinhoni

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