Demand-Side Response
Demand-Side Response (DSR) is any method of reducing electrical use, in response to peaking demand on the National Grid. It allows system operators such as the National Grid to avoid using expensive and polluting “peaking” power stations.
SSE works in close partnership with KiWi Power as a commercial aggregator of Demand-Side Response to the National Grid. Together, we provide a wide range of contingency power and demand management technical services, working with our customers to define Demand Management strategies to ensure successful performance during Demand-Side Response events.
How does it work?
Our customers are paid by the National Grid for each kilowatt of demand that can be temporarily turned down, at peak times. It is more economical for National Grid to pay businesses to reduce demand than to pay for peaking power stations to be on standby.
The Demand Management strategy may include:
- Turning down non-essential lights for a short period of time
- Temporarily decreasing compressor loads on refrigeration units
- Turning down heating or cooling systems for an hour or two
- Delaying processes that are energy intensive
- Temporarily shutting down non-essential machines
- Activating back-up generators for an hour or two
SSE takes a unique approach to Demand Management strategies. We review each site on its own merit. We then choose the best Demand-Side Response options for you and your individual site. This then allows us to maximise value whilst minimising risk.
Our approach
Participation in the energy markets is complex and technically challenging; we remove this complexity with a simple, no-cost, risk-managed programme that delivers a new, recurring revenue stream. We recognise the sensitivity of operations on site and create bespoke Demand Management strategies together with our customers that fit their business needs.
Benefits of Demand-Side Response
Participating in a Demand-Side Response programme has significant benefits, and we have made joining the scheme effortless. Our experience and focus on Demand-Side Response operations allow facilities to realise maximum benefits from participation. During the site assessment process, we take the time to understand the electrical consumption profile of your site. We use best practices and extensive knowledge of facilities, energy and project management.
- Financial benefits: Participation can generate significant new revenue streams
- Real-Time energy monitoring: Real-time, multi-site smart metering is installed and access is provided through SSE Enterprise powered by KiWi Power’s Customer Portal, improving understanding of energy consumption up to asset level
- Reduce CO2, support renewable generation: Reduce costs through CRC, improve Green credentials as a result of reduced consumption at peak and support intermittent renewable generation
- Evaluate/maintain operational readiness: Continued monitoring and activation of controls and generation assets ensures infrastructure is operationally sound
- Hedging against increased energy costs: Offset increased energy costs through increased DR payments
- No cost: There is no cost to participants or any interruption to service (depending on the level of participation sought)
Energy efficiency
Demand-Side Response and energy efficiency go hand-in-hand, even if a facility has already undergone measures to increase energy efficiency, such as installing LED lighting and occupancy sensors or improved temperature control for HVAC systems. Demand-Side Response can further optimise energy use through additional short-term efficiencies and management of peaks. Demand-Side Response is also an ideal first step towards becoming energy efficient.
From Short Term Operating Reserve (STOR), through Demand-Side Balancing Reserve (DSBR) and DNO (Distribution Network Operator) Programmes, to Capacity Mechanism and beyond – more Demand-Side Response is required to ‘keep the lights on’, and we are best placed to guide and partner you on the journey.