© Shutterstock / GheorgheGarcu Companies can turn their own energy usage into a strategic asset that enhances both their sustainability profile and their bottom line.
-
Some Energy Voice online content is funded by outside parties. The revenue from this helps to sustain our independent news gathering. You will always know if you are reading paid-for material as it will be clearly labelled as “Partnership” on the site and on social media channels,
This can take two different forms.
“Presented by”
This means the content has been paid for and produced by the named advertiser.“In partnership with”
This means the content has been paid for and approved by the named advertiser but written and edited by our own commercial content team.
Businesses have a unique opportunity to unlock new revenue streams by leveraging demand side flexibility as the UK sprints towards achieving clean power in five years’ time.
In its Clean Power 2030 Action Plan, the UK government aims to increase demand side flexibility by up to five times from today’s levels.
What is demand side flexibility?
Also known as demand side response (DSR), this allows businesses to be financially incentivised to adjust the way they use energy in response to grid demands or price changes.
This will help the national grid maintain stability in the system by balancing supply and demand. This will also help support renewable energy especially in Scotland, where a substantial portion of its electricity is generated from wind and solar sources.
As the pioneer of DSR in the UK, Flexitricity is at the forefront of this movement.
The Edinburgh-based electric utility company’s founder and chief strategy officer, Alastair Martin explained: “Renewable generation took off in an astonishing way, far faster than anybody had predicted, I think.
“Renewables present a unique set of challenges, mostly about the availability of sunshine and wind. The issue then becomes a question of responding to the peaks and troughs of that, which can come at any time of the day or night.
“What you’re opening up is a market for ad hoc reserve. You’ve got capacity now, sell it now.
“It’s morally right that the high availability of large amounts of renewable energy generate a saving for the people who adjust what they do to suit it. That’s a transaction that is valid and justifiable. I think people will also routinely opt into it given the choice, to the extent that is made practical for them.”
Business as usual
Any company that uses electricity as an input to their main business and has a degree of flexibility around their energy consumption can engage with Flexitricity and capitalise on the incentives. For example, businesses with assets like charge points, heat pumps and backup generators are reaping the benefits.
Flexitricity assures these firms their daily core operations will not be disrupted.
Alastair cites supermarket chain Asda as a concrete example. Currently 300 of its stores are active in the Capacity Market with Flexitricity.
He said: “If electricity is running short, we ask Asda to turn down consumption at some of their in-store fridges. Not all. We do not ask them to turn down the lights. That’s not a meaningful thing to do.
“Asda can reduce consumption for a period of time. Those limits are defined by the customer. So Asda pins the extent to which we offer their resources and we never expect them to do any more than that.
“Customer choice is everything. Optionality is everything here.”
Enhance operational efficiency
Aside from contributing to a low-carbon future, engaging in consumer-led energy flexibility also allows businesses to enhance their own operational efficiency.
By analysing patterns in their energy consumption, they can identify solutions to reduce waste, lower costs and improve overall performance. This efficiency can lead to a more competitive edge in the market.
Get started
Flexitricity will launch a groundbreaking service called FlexGO that will help commercial and industrial businesses simplify their energy flexibility journey.
Alastair said: “FlexGO is an easy three-step process. We’ve developed the tools for clients to figure out whether it’s the right fit for them.
“Of course, we will provide as much information and detail as they want but nobody has to sit there and spend hours away from their business to become an expert in DSR.
“It’s a quick and cheap connection, whether that’s API or the FlexGO device, and then they can already start earning.”
Visit Flexitricity’s website to explore how you can connect to revenue-generating opportunities in flexible energy markets.
