The Capacity Market (CM) offers an opportunity for large businesses to be part of the future UK smart grid. A clear aim is to provide commercially attractive options for large businesses to take part in providing capacity to the grid through the established mechanisms of Demand Response when the grid needs it the most.
Demand Response can play a key role in your overall energy management strategy. At no cost to you, you can earn significant revenue whilst reducing energy consumption and subsequently energy costs. Additionally, on a wider scale, you’ll be helping to avoid blackouts and improve the carbon footprint of the UK.
The Capacity Market (CM) is the biggest reform in the UK’s energy policy in over 20 years. It was set up in order to create a mechanism to provide electricity generating capacity to replace old, polluting power stations reaching the end of their life with new, lower carbon ones along with smart grid technologies such as Demand Response.
The British Government’s immediate focus is on replacing UK’s coal fired power station capacity that makes up 25% of all UK electricity generation. This will have been shut down by 2020 due to the requirements of the EU (Large Combustion Plant Directive (LCPD, 2001/80/EC)).
Demand Response represents not only a significant commercial opportunity to participating organisations, but an imperative to secure supply. There will be an increasing number of options for businesses to benefit from taking part in helping to balance the grid and this is where Comply Direct can help.
In order to achieve the maximum utilisation revenue, customers will need to be able to:
- Respond to demand reduction requests within 20 minutes
- Sustain load drop up to 2 hours
- Agree to a maximum of 3 events per week
- Recover for the next availability window
- Participate in an average of 50 events per year
If you are interested in participating in the Demand Response programme but you are unsure if you meet the minimum requirements or simply would like more information, please get in touch
Compliance with ESOS through Comply Direct allows us to drive improvements in our UK operations. They have helped us identify areas to save energy with a cost saving opportunity of £69,000
How it Works
Comply Direct assess all of your electrical plant against your half hourly (HH) electricity data. We will compare day use against night time use and agree the equipment that we can comfortably turn down and items that we can switch off completely without causing any interruption to your daily operations.
Businesses must be able to reduce consumption from the grid during a time of system stress. Comply Direct will help you to identify the best way of doing this for your business.
If the pledged amount of energy cannot be turned down/off on any given grid event, this will be the responsibility of ourselves and you will not be penalised.
Turn down/switch off events will occur only when there is an unusually large UK energy demand (what might be referred to colloquially as World Cup moments; when the nation gets off their collective sofa to make a cup of tea and 15 million 2kW kettles across the country go on). These periods can also be signalled during a significant event such as the failure of a power station.
Demand Response helps to compensate for this and reduces industrial load at this time. The system is entirely automated. An electronic message goes to your building management system (BMS) or Power Information Pod (PIP) and seconds later, the equipment we have agreed to control is turned down or off.
These events will occur no more than 15 times per year and are never more than 30 minutes in duration.
Where necessary, we will arrange to install a Power Information Pod (PiP) onsite free of charge to measure demand in real time. There are no software management fees and any upgrade costs required to the existing control systems will be financed through the Demand Response revenues to site. Where there is a BMS system on site, this PIP may not be required.
- There is no cost
- Risks are held by Comply Direct and our aggregator
- Significant annual income stream
- There are no interruptions to service (provided you don't require that we exceed recommendations for how much of your plant is turned down)
- Offset increasing energy costs
- Continual second by second monitoring of equipment to be turned down/off allows you to ensure that your infrastructure is operating optimally
- Allows you to better understand where your key energy consumption items lie and so you can focus on reducing these
- Reduced consumption at peak provides you with enhanced CSR credentials
Comply Direct will manage the full process for you. To start, we will need to carry out a brief site audit and will need to obtain the latest 12 months of half hourly data for your site.
If you are interested in participating in the Demand Response Programme or simply would like more information, please get in touch today.