Demand Response Solutions, how to earn income by consuming energy

Transforming energy consumption into a source of income. An opportunity now available to all companies through Demand Response programs, such as that run by Enel X

Published on 14 September 2020

Programmi di demand response per l’efficienza energetica aziendale

Transforming a fixed cost into a new source of income for your business is an opportunity that all commercial and industrial consumers can benefit from thanks to Demand Response (DR): a state-of-the-art solution which rewards customers for their willingness to adjust their capacity (reducing energy consumption or increasing production), so as to ensure greater stability and flexibility of the electricity grid. This service is provided to the transmission service operator, or TSO, through an aggregator (Balance Service Provider). DR programmes do not aim at reducing overall energy consumption per se. Rather, they’re about reducing it during particular periods of the day when the demand for energy reaches peaks that exceed the total amount of available energy. The objective is to improve the efficiency of the grid whilst simultaneously generating extra income for the companies involved.

But how does Demand Response work in a technical sense? When the network operator foresees a peak in energy consumption, which might cause an issue for network stability, it sends a balancing order to the demand aggregator. The aggregator, in turn, sends the order to the companies signed up to the programme, who then, manually or automatically, modulate their demand. In other words, they decrease or increase the load or production for a short period of time. In so doing, the network operator can meet the demand for energy without incurring additional costs (financial and environmental, where fossil fuels are used). This simultaneously ensures network stability as well as a financial return for those industrial and commercial consumers participating in the DR programme. Participants receive payments for being available to modulate their energy load, and further remuneration which varies depending on the result of the modulation. All without slowing down the operations of the companies involved.

Flexibility, an added value

Demand Response converts the capacity to be flexible into added value, transforming the customer into a resource contributing to the reliability and efficiency of the energy market.

The solutions offered by Enel X

With approximately 350 MW of managed capacity and a 35% market share, Enel X is Italy’s leader for Demand Response. The e-Industries business line allows us to offer integrated and flexible solutions to our large commercial and industrial customers, facilitating efficient energy management whilst simultaneously turning them into active players in the energy market and transforming what was once a fixed cost into an income source.

Competitiveness and sustainability

The benefits of Demand Response are not just limited to those participating in the programme: they have a positive impact on the entire energy ecosystem. Indeed, DR can reduce peaks in demand and prevent brownouts. In addition, DR can also improve the flexibility of demand by supporting the development of renewable energy sources. Yet another example of how our solutions, by increasing flexibility for companies, can help them to become even more competitive and to combine their objectives for growth with those related to sustainability.Transforming a fixed cost into a new source of income for your business is an opportunity that all commercial and industrial consumers can benefit from thanks to Demand Response (DR): a state-of-the-art solution which rewards customers for their willingness to adjust their capacity (reducing energy consumption or increasing production), so as to ensure greater stability and flexibility of the electricity grid. This service is provided to the transmission service operator, or TSO, through an aggregator (Balance Service Provider). DR programmes do not aim at reducing overall energy consumption per se. Rather, they’re about reducing it during particular periods of the day when the demand for energy reaches peaks that exceed the total amount of available energy. The objective is to improve the efficiency of the grid whilst simultaneously generating extra income for the companies involved.

But how does Demand Response work in a technical sense? When the network operator foresees a peak in energy consumption, which might cause an issue for network stability, it sends a balancing order to the demand aggregator. The aggregator, in turn, sends the order to the companies signed up to the programme, who then, manually or automatically, modulate their demand. In other words, they decrease or increase the load or production for a short period of time. In so doing, the network operator can meet the demand for energy without incurring additional costs (financial and environmental, where fossil fuels are used). This simultaneously ensures network stability as well as a financial return for those industrial and commercial consumers participating in the DR programme. Participants receive payments for being available to modulate their energy load, and further remuneration which varies depending on the result of the modulation. All without slowing down the operations of the companies involved.

Flexibility, an added value

Demand Response converts the capacity to be flexible into added value, transforming the customer into a resource contributing to the reliability and efficiency of the energy market.

The solutions offered by Enel X

With approximately 350 MW of managed capacity and a 35% market share, Enel X is Italy’s leader for Demand Response. The e-Industries business line allows us to offer integrated and flexible solutions to our large commercial and industrial customers, facilitating efficient energy management whilst simultaneously turning them into active players in the energy market and transforming what was once a fixed cost into an income source.

Competitiveness and sustainability

The benefits of Demand Response are not just limited to those participating in the programme: they have a positive impact on the entire energy ecosystem. Indeed, DR can reduce peaks in demand and prevent brownouts. In addition, DR can also improve the flexibility of demand by supporting the development of renewable energy sources. Yet another example of how our solutions, by increasing flexibility for companies, can help them to become even more competitive and to combine their objectives for growth with those related to sustainability.

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