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DEMAND SIDE RESPONSE – STORAGE SIMPLIFIED

Demand Side Response (DSR) is a tool utilised by the system operator, the National Grid, in which they reward end users for their ability to utilise energy in a flexible manner, whether this takes the form of temporarily reducing demand, supplying energy to the grid or increasing consumption at times when the grid experiences over-supply. The grid uses these reserves to smooth out the everyday fluctuations in the supply and demand of electricity that are becoming more commonplace, therefore the energy network stays at the level it is required to do so in order to be fully operational.Demand Side Management

DSR is growing in popularity and importance as the energy transition gathers momentum. This is mainly due to the supply from the network becoming more volatile in recent years due to the advancement and uptake of technology across all industries which results in far greater consumption and demand for energy than previously. This increased demand combined with the growing popularity, driven in part by Government policy has been causing strain on the network ,which needs to be balanced and DSR is one way in which this balancing can be achieved. The National Grid has summarised the importance of DSR with this quote “By encouraging greater and wider participation, collectively we can turn an industry problem into a customer opportunity.”1

An organisation can participate in DSR by connecting an energy asset, such as the Powerstar VIRTUE energy storage solution, to the grid and then managing the demand through an energy management system. As DSR is in place to reward organisations for intelligent energy use, the energy management system is vital as it provides this flexibility and therefore enables participating organisations to benefit from the flexibility in their energy use and allows them to enter energy markets which introduces the opportunity to buy and sell energy as market opportunities arise.

The ability to participate in DSR is not restricted to experts in the market as aggregators exist which groups energy users together in order to organise new revenue streams which best suit the needs of the different energy users.

In addition to this some providers, such as Powerstar, can simplify the process even further by working with a pool of aggregators to ensure that the end user only has a single and consistent point of contact.

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1 https://www.nationalgrid.com/uk/electricity/balancing-services/demand-side-response-dsr

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