Member Article

Businesses Earn Rewards with Relaunch of National Grid Scheme

The National Grid trialled the Demand Flexibility Service scheme last winter to avoid blackouts and to reduce the need for emergency coal powered stations to generate electricity during times of peak demand. With a high engagement from energy users, and positive feedback after the trial, businesses will once again have the opportunity to earn payments for minimising their electricity use during a number of energy-reduction events from 31st October 2023 through to March 2024. Those that opted in to the scheme last winter were financially rewarded for reducing their usage during scheduled events that suited their business operations and with no penalties if unable to take part on the day.

Certain businesses have easily adapted to make the most of this scheme. During the trial, manufacturers leveraged their energy flexibility by occasionally scheduling their staff breaks and maintenance times to coincide with one-hour events during which time equipment could be safely powered down. Those with EV fleets were able to plan vehicle charging times outside of events while cold storage companies provided valuable energy flexibility by adjusting usage before and during scheduled events. Businesses with batteries used their stored power while being paid to reduce their reliance on the grid during these forecasted peak times. Offices and other populated spaces such as warehouses and shopping malls were able to heat their environments before an event to provide comfortable conditions while powering down.

The positive reception and uptake of Demand Flexibility Service has prompted other energy flexibility schemes to become available for businesses to simultaneously earn financial rewards while helping the grid to reduce carbon emissions. Distribution Network Operators, such as UK Power Networks, are offering flexibility services that allow energy companies to pay their customers for taking part in flexibility schemes. The relaunch of Demand Flexibility Service will run over the winter months when demand is expected to be at its highest. As an approved provider CUB can let businesses know how much they can expect to gain before opting in. By monitoring power consumption of active participants, energy savings and payments can be optimised throughout the duration of the scheme.

Businesses that were able to avoid TRIAD charges are well positioned to leverage DSR schemes to develop new revenue streams while supporting grid stability. TRIAD previously ran over the winter months with the last season ending on 28th February. The new TRIAD season would normally start in November so now would be a good time to contact CUB to find out more about how this National Grid ESO scheme could help. Unlike TRIAD incentives, those participating in the Demand Flexibility Service not only reduce costs but also receive payments by lowering their energy during occasional peak time events.

Energy flexibility schemes run by organisations such as the National Grid ESO and Distribution Network Operators are empowering businesses throughout Britain to provide flexibility by enabling them to become active participants in the smart grid. This dynamic approach helps to reduce the cost of connecting renewable generators to the grid and is making the most of renewable energy already available for the network. Businesses are increasingly generating their own renewable energy, but unlike company owned fossil fuel backup generators, on-site renewables combined with battery storage can provide businesses with their own clean energy while participating in a wider range of profitable flexibility schemes that also help to decarbonise the grid.

The engagement in energy flexibility is connecting businesses through active participation with the smart grid and renewable energy development by enhancing efficiency and reliability. Real-time communications enable interaction between grid operators, energy companies and businesses, providing greater visibility and control over electricity consumption, optimising usage based on cost, environmental factors and grid conditions. Businesses connecting to the smart grid are able to use a wealth of data on electricity consumption patterns that can be analysed to gain insights into operations and demand trends to help businesses plan for future energy needs.

This was posted in Bdaily's Members' News section by Louis Fairfax, Managing Director, CUB .