We hope you’re enjoying our blog series about energy solutions (catch up on past blogs here) for our penultimate blog on this topic, today we’re going to be discussing Demand Side Response (DSR.)
To start by defining DSR, we need to split the phrase up:
Demand Side- the flexible load or the generation connected to the distribution network (The National Grid.)
Response- In response to an external signal, there is a deliberate modification in either electricity consumption or generation.
The Director of the National Grid, Cordi O’Hara spoke about DSR. “As we stand at a critical crossroads, National Grid believe that DSR has a vital role to play.”
As technology surrounding the energy industry evolves, we need to continue to adapt to ensure we’re always maximising the benefits we can receive from the advancements. DSR is all about intelligent energy use. Therefore, as power stations close down and we can see an increase in renewables and electrification, we need to respond to this.
We can split the benefits of DSR into three main sections:
Lower carbon- The reduction of reliance on fossil fuel power stations by generating a higher level of cleaner forms of energy generation, according to E-ON, “with 4GW of user-led DSR in the CM, the UK would avoid building 10,400MW new power plants.” One of the main benefits of DSR is that it gives a bigger control over the network, it helps balance the system, as stated by the National Grid, “it can help us soften peaks in demand and fill in the troughs, especially at times when power is more abundant, affordable and clean.”
Security of Supply- The fact that renewables are feeding into the National Grid- whilst amazing for reducing the level of fossil fuels burned -means that there’s a risk of it not being a constant and reliable source of energy. Whilst wind turbines can produce a high level of power in one season for example, the next season it may generate less. These intermittent renewables are still necessary within the system, it works well because DSR ensures the grid is stable regardless of the unreliability of the energy, due to the flexibility offered.
Affordability- According to E-On, DSR can make energy more affordable, “The new sources of revenue and fee avoidance for customers to offset increasing energy spend.”
We’ve discussed balancing the energy system before, where the supply and demand must always match the usage. The production of power then must always match usage- this is called balancing the system which ties directly into Demand Response. If one is higher than the other, there must be a deliberate modification at either side to balance the system. An increase in demand may be easily balanced by an increased generation of energy- or buying power from various battery storage facilities (read more on that here) but the businesses and public can change their demand by either turning down their use, changing when they use it- i.e. not at peak times of day or by increasing their use of on-site generation from battery storage or their own source of renewable energy.
Make sure to check our blog next week for more information on how you could produce revenue for your business via Demand Side Response! If you’ve read our past blogs and are already interested in this, please get in touch with one of our expert energy advisers who would be happy to discuss this further with you!