News / Why are so many businesses choosing Demand Side Response?

Why are so many businesses choosing Demand Side Response?

If you’re a large business, Demand Side Response (DSR) can deliver valuable rewards for being flexible in your power usage. Here, we help you explore some of the options.

Why are so many businesses choosing demand side response?

Traditionally, the generators (or the supply side of the energy industry) have provided the market with its flexibility. That’s because they’re able to turn down production to keep the frequency balanced across the network, or increase it to help meet peaks in demand. For example, National Grid expected a 500 megawatt soar in electricity during half time when England kicked off their world cup campaign. 23 million fridge doors opening at once can have a big effect on national demand!

However, the demand side of the equation is now flexing its muscles too, as large businesses earn revenue through flexible usage. Thanks to Demand Side Response (DSR) schemes, these organisations are paid for changing how and when they use electricity.

National Grid’s explanation of DSR states that it’s all about “intelligent energy use”. Your business shifts its power usage at crucial moments (usually to help balance peak demand or to support intermittent renewables). So you can get paid for turning your power off from time to time, switching to battery storage, or even for turning it on at other times.

According to The Energyst*, 77% of businesses not participating in DSR say they “would be interested in doing so if it didn’t affect their core business.” The same report found that 79% of businesses chose DSR to generate income from assets, 56% to avoid peak network charges, and 26% to fulfil corporate social responsibility commitments such as reducing their carbon footprint.

Taking part in DSR

Your business has a number of options relating to DSR schemes. You can work with your Distribution Network Operator (DNO) or National Grid, join the Government’s Capacity Market (CM), or liaise with an aggregator who can help if your consumption is insufficient on its own to qualify for DSR. An energy supplier can support you with all of these options and can provide extensive DSR knowledge and energy industry expertise. Haven Power, for example, helped Colchester Hospital University NHS Foundation Trust earn around £200k annually from power generation.

Different payments are available too, depending on the type, scale and speed of response required by the DSR scheme you’ve entered. The more power you can commit to using when required, or stop using when asked, and the quicker you can respond, the higher your payments will be.

*Demand Response: Shifting the Balance of Power 2017 Report, The Energyst

To discuss how Haven Power can help you choose the right DSR scheme for your business, and guide you through the process, please complete our contact form.

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