Demand Side Response: what is it, how it works and what are its benefits?

Demand Side Response or DSR – also referred to as Demand Response (DR) or Demand Management – is a mechanism used by grid operators to help balance electricity supply and demand. It is used primarily to prevent power outages caused by grid capacity stress and maintenance issues. Businesses that can flex their energy use can join DSR programmes to help reduce electricity demand at periods of grid stress and earn valuable revenue.

DSR events in Great Britain can be triggered by weather conditions – at a generation and distribution level – when a generation unit is impaired or when supply from interconnectors is interrupted.

Demand Side Response programmes work by financially incentivising participants to free up grid capacity at times when electricity demand exceeds available supply. How this is achieved within an individual business depends on operational requirements and available assets, but typical actions include:

Energy savings

Engaging in Demand Side Response means that participants are working to decrease their electricity use at times of peak demand when prices are high, which helps to reduce overall energy costs.

Cost-free and risk-free

Participating in Demand Side Response programmes with Enel X incurs no upfront costs and is risk-free. There are no penalties if particpants are unable to meet their obligation for an event; they just won’t receive revenue from the programme.

 

Grid stability and sustainability

Demand Side Response benefits all electricity users in GB. It is critical in managing and ensuring security of supply. Responding to DSR events can help prevent an actual outage of the national or regional grid system that would result in more frequent and longer periods running on back-up generation or batteries.

DSR also supports Net Zero ambitions; improving sustainability and helping to decarbonise the economy by enabling more variable renewable energy sources to be integrated onto the grid.

 

Improved business resilience

Businesses with generation or battery storage assets can generate revenue through DSR from equipment that might otherwise go unused for long periods. More frequent use also helps improve business resilience – well maintained and frequently run assets are most likely to deliver when called on to support the business during an unpredicted grid outage.

 

Advance notice of power outages

Participants in DSR programmes receive advance notice of pending periods of grid stress that may result in power outages. Knowing when the electricity supply will be disrupted allows business managers to schedule maintenance during an outage and reduce overall downtime.

When a participant is ready to get involved with a Demand Side Response programme, Enel X will analyse its half-hourly electricity data to assess the potential benefits available. Enel X will then process all the relevant paperwork on its behalf.

 

Once agreements are in place, participants will start to receive income for each DSR event they contribute to. Click here to schedule a call with an Enel X team member.