Smartest Energy is preparing to offer a Demand Side Response (DSR) service to businesses in the new year.
Businesses will receive payments for reducing consumption in periods of high demand through the Capacity Market auction. They may even receive money just for taking part even if they are not called upon to cut their usage.
Customers will be placed in groups with their nominated hours to potentially cut consumption so that the capacity can be covered by other businesses in the group with different requirements.
Chief executive Robert Groves said: “Demand side response offers an exciting opportunity for the businesses we work with to turn their energy use into an asset and make significant savings.
“At a time when larger businesses are increasingly looking to be more responsible over their energy use, it also has wider benefits in terms of making energy demand more responsive and sustainable, reducing CO2 emissions and helping the nation avoid the risk of blackouts. Many customers are already exploring forms of energy efficiency and we want to help them realise commercial benefits.”
We applaud Smartest Energy for their efforts. Encouraging businesses to engage in DSR helps energy efficiency and stability for nationwide power. Incentivizing customers financially to lower or shift their electricity use at peak times helps National Grid to manage load and voltage profiles on the electricity network.
It has been estimated that if just 5 per cent of peak demand is met by DSR solutions National Grid would save £790 million. That’s not to be sniffed at.