Wind energy provider DONG Energy has launched a new scheme that offers commercial customers financial rewards for turning down their consumption or increasing onsite generation when the wind isn't blowing.

The ‘first of its kind’ Renewable Balancing Reserve service is DONG’s latest attempt to balance the intermittent supply of wind with customer demand.

DONG Energy will invite customers to either reduce consumption – by switching off non-essential equipment, shifting production schedules, or turning down large consumption assets such as heating, ventilation and air conditioning – or increase on-site generation from sources such as CHP plants.

According to DONG, the scheme gives customers the opportunity to reduce intermittency in grid supply and also creates a new revenue stream by sharing the cost savings that result.

DONG Energy customers can choose whether to participate, without commitment, during any half-hourly period throughout the year. 

As the UK energy mix becomes increasingly intermittent thanks to an increase in renewables and closure of coal-fired plants, there is a greater requirement for businesses to support system balancing using on-site generation or demand reduction.

DONG Energy Sales UK managing director Jeff Whittingham said: “DONG Energy is investing in the development of new commercial solutions to balance an intermittent generation portfolio, whilst helping businesses to use their flexibility to create value.

“Renewable Balancing Reserve is different, as it provides businesses with an alternative way to reduce costs and create new revenue, without the risk of penalties or restrictive schedules.”

How it works

Interested businesses set the times during which they can participate, along with the minimum price per MWh that they are willing to accept.

Based on those customer settings, DONG Energy alerts relevant businesses of the times which they need to turn down consumption or ramp up on-site generation, along with the revenue available (based imbalance costs provided by Elexon).

Participating businesses then receive a £/MWh payment based on their actual consumption change during the RBR period.

Edie.net