DSR-An opportunity to release an additional income stream from your property asset

Friday 25th November 2016

What is Demand Side Response?

Demand Side Response (DSR) is in its infancy in the UK, but has the potential to expand significantly over the next decade, as ‘non-commodity’ electricity costs increase at a rate far in excess of the wholesale markets. 

According to National Grid around 3.5GW of the UK’s electricity capacity currently comes from peaking power stations with the potential to rise to 8GW by 2020.  This is a major problem for the power providers, as it is the most expensive power to produce.  Inevitably, these costs are passed on to consumers through increased electricity contract costs, together with higher distribution and transmission costs. 

DSR is designed to reduce site consumption during times of peak power, therefore helping generators to match demand with supply, with the end user benefiting from reduced supply costs.

Why isn’t DSR more popular?

The most common form of DSR in the UK to date has been Short Term Operating Reserve (STOR).  STOR is normally provided by using existing standby generators to replace some of the grid electricity load within a building during peak times.  The site is then paid for its support. 

In theory, STOR should be attractive.  In reality, it is only called on a few times per year and therefore the small additional income stream may not warrant the amount of time and investment needed to put the scheme in place. 

E2’s Approach

E2 has a different approach to DSR.  By re-engineering how buildings operate, it is possible to minimise electricity consumption during peak periods every day, creating an ongoing income stream.  E2 targets three core areas within its DSR strategies, with the aim of maximising the income stream for the client.

Step 1 – Profile Reengineering

The lunchtime peak is the most expensive time to generate electricity in the UK.  Suppliers will therefore reward clients that can reduce their peak loads, through implementing long term efficiency measures during these short periods. 

Our engineers identify areas where load can be reduced and put in place revised control strategies to automate the process, whilst ensuring there is no detrimental effect to the building or its occupants.    This technique can reduce a typical site’s electricity bill by up to 5.0%. 

Step 2 - DUoS Avoidance: 

As an additional £100 billion is invested into the national grid, distribution charges are on the increase.  These are now grouped into ‘Red, Amber & Green’ periods and charged directly on to customers. 

Most businesses are heavy users in the late afternoon when the ‘Red’ period hits. 

E2’s engineers assess your building services and control strategies and identify key areas where load can be shifted for short periods. 

Once the  measures are shortlisted, these are discussed & agreed with the client.  E2’s engineers then implement the improved control strategy and undertake a series of tests, to ensure there are no adverse effects on the occupiers of the buildings. 

The changes are then fully automated & ongoing monitoring is provided by E2’s Energy Bureau.

Step 3 -  Triad Avoidance: 

Customers are charged for the amount of energy consumed during the 3 peaks on the national grid each year.  These are known as ‘Triad’ charges.

It is possible to reduce your Triad charges by taking ownership of your organisation’s energy demand during these peak periods. 

The majority of consumers pay a ‘bundled price’ for their Triad usage, based on estimates by the suppliers.  By taking ownership of your Triad periods, significant savings can be achieved. 

E2’s engineers work with you to develop a Triad strategy, utilising a variety of load reduction techniques.  The Triad strategy is then written into your BMS system, so that it can be initiated either by E2’s energy bureau or via your on-site staff. 

Would DSR be suitable for your building?  Please give E2 a call to discuss this opportunity further.

Carl Revens, Founder & MD of E2 Services