National Grid has used Open Energi’s Dynamic Demand technology since 2010 to aggregate the electricity use of major energy users, such as Aggregate Industries, United Utilities and Sainsbury’s, helping to balance the grid and free up spare capacity in the system.
Following the publication of National Grid’s Winter Outlook report, Chris Kimmett, commercial manager at Open Energi said: “This year’s winter outlook report anticipates that electricity margins will be tight but manageable for this winter. But the bigger challenge National Grid faces is balancing instantaneous demand and supply changes as we transition to low carbon, renewable generation.
“As System Operator, National Grid must ensure that we are able to balance supply and demand in real-time. In addition system frequency must be maintained within specific operational standards, which is achieved by maintaining reserve for frequency response. Research published last week by Open Energi, National Grid and Cardiff University suggests that demand side response (DSR) technology can meet the UK’s crucial grid balancing requirements five times faster than a conventional power station.
“The energy system is undergoing a huge transformation away from centralised generation to small-scale, distributed power and National Grid’s Future Energy Scenarios (FES) models indicate that by 2020 small-scale, distributed generation will represent a third of total capacity in the UK. As a result, speed of response to changes in energy supply and demand will be more important than ever.
“It is not only the increase in distributed generation that will prove challenging for National Grid. The Capacity Market was supposed to bring new sources of electricity supply onto the grid, but the only approved new gas project, Trafford Power, is now in doubt. In addition, the coal-fired Eggborough, Longannet and Ferrybridge power stations, which currently represent around 6.4% of UK generation, are all closing by next winter. A new source of flexibility is required, so demand side response will be more vital than ever.”