Much has been written about the events of 9 August, and the subsequent reports from National Grid ESO, which pointed to a lightning strike – ‘an extremely rare and unprecedented event’ – as the catalyst for the UK’s biggest power cut in a decade.
What it has brought into question – as many commentators have discussed – is the resilience of the grid, and how it will cope with the increased electrification the UK will require if it is to hit its target of net zero carbon emissions by 2050.
This is where demand side response (DSR) needs to be part of the conversation. And, why we, as representatives of the energy sector, need to be doing more to highlight its benefits to energy intensive users. Many such users have been resistant to DSR in the past, believing it means a total shutdown in operations, and that any money lost during a period of downtime is not worth risking, despite the financial benefits of receiving revenue for participation.
Fundamentally, most large businesses or plants could participate in DSR, but many don’t really know enough about it to make an informed decision. And that, by participating in DSR, organisations can both support a smarter, more flexible energy system, and earn revenue or reduce their electricity costs.
The first step is to educate businesses about the benefits of DSR participation and the various options available e.g. Frequency Response, STOR and Capacity Market. In addition to the established DSR schemes, energy suppliers are trading assets on flexibly procured contracts to take advantage of wholesale price spikes, as well as to those businesses that already manage Triad periods in the Winter.
We also need to demonstrate that – while larger energy users are more obvious candidates for DSR as typically a minimum of 500kW of flexible load is required to sign up for a programme – a smaller energy user with flexibility may be able to get involved by aggregating consumption with other smaller users.
The second is to show businesses – particularly those that have 24/7 operations, for example manufacturers – that participating in DSR doesn’t necessarily mean a period of total downtime, and that it is possible for flexible assets or load to be turned down with little impact on business operations.
For example, a site audit could identify secondary pieces of equipment, that are maybe not critical for day-to-day operations, that can participate in DSR. Or, certain areas of a plant where the asset could be turned down with little or no risk of downtime.
The third step is to regularly review the viability of DSR for an organisation. Advances in technology mean that, where it may not have been feasible in the past, it could be an opportunity now. For example, the interruption could be for a much shorter period of time – seconds or minutes – meaning the impact on a business is minimal.
What is clear is that, as we transition to a low-carbon world, DSR could enable both large and small energy users to play a key role in keeping the lights on – and in doing so, they could see real benefits to their organisation. As the grid requires it more, DSR will only increase in value, so we could see a review at government-level fast-tracked as part of its future energy policies.
Whatever the ultimate conclusions are, DSR needs to be part of the conversation. Particularly how it can both support the UK’s future energy mix, and provide the grid with much-needed back-up at peak times.