Generating over one million in revenue for our customers through the Demand Flexibility Service
20th February 2023
We’re proud to have been at the forefront of a new world-leading power demand reduction service that saw businesses with electric assets and EV charge points help keep the lights on in the UK throughout winter 2022/23.
The Demand Flexibility Service (DFS) includes businesses with electric vehicle charge points and assets where demand can be flexed. Through the scheme we generated a combined £1 million in revenue for our customers.
National Grid Electricity System Operator (NGESO) launched the DFS to financially incentivise businesses to reduce electricity consumption when national demand is at its highest, typically on weekdays between 4pm and 7pm. Between November 2022 and March 2023, the ESO announced that it would operate a maximum of 12 tests for participants.
We worked with our customers, including vehicle manufacturer Ford and SME FI Real Estate Management, to reduce their collective power demand.
This additional flexibility helps National Grid ESO balance supply and demand amid the energy crisis caused by Russia’s invasion of Ukraine.
Our customers were paid £3,000 per MWh to reduce their power consumption and with a reduction in demand of 287MWh observed during the test events (enough to power 574,000 UK homes), a revenue of over £875,000 was achieved for participating customers.
Following this series of successful test events, in January NGESO announced the first live events as part of the Demand Flexibility Scheme. Across the live events, our customers contributed to a 54 MWh demand reduction, and generated over £200,000 for taking part, taking the total combined revenue to over £1 million.
Adam Hall, Drax’s Director of Energy Services said:
“Drax Energy Solutions is one of the first approved providers of this service. Our business customers with flexibility in their operations can play a significant role in boosting Britain’s energy security whilst cutting their own electricity bills."
"Customers including Ford and FI Real Estate Management agreed to take part in the scheme, adjusting their manufacturing processes and EV charging. This delivered more flexibility and stability to the grid, by cutting their energy use at key times, which in turn contributes to their own net zero goals.”
FI Real Estate Management manage over 15msq ft of UK commercial and industrial real estate and over four decades of experience. John Corker, Advisor to the Managing Director & Chief Operating Officer said:
“We are constantly reviewing how we can reduce the environmental impact of our real estate portfolio, so we jumped at the opportunity to support this important UK initiative and look forward to increasing our participation in the scheme as future opportunities arise. We are committed to becoming a more sustainable company by implementing smart building technology wherever possible and installing electric vehicle charging points across the estate.”
Flexibility for the future
The NGESO has announced the DFS will operate again in winter 2023/24. And we’re keen to help them orchestrate it in order to maximise uptake and energy flex.
But we’re also developing our own product so that customers can benefit from flexing their consumption around the entire calendar year. For this product, we’ll pass on the revenue we make from our expertise in market trading using the energy the customer’s been able to flex.
Our support for the NGESO’s schemes, the development of our own product and the assistance we provide our customers to optimise their electric assets shows a commitment to:
- Financially benefiting our customers – via pursuing incentives, earning from our trading expertise and reducing energy spend
- Supporting the Grid in balancing supply and demand in increasingly difficult circumstances
- Promoting the importance and benefits of demand side response as a way to help the Grid and benefit financially – across existing customers and more publicly
- Reducing the UK’s reliance on fossil fuels and supporting a more sustainable energy future
- Helping the UK decarbonise and work towards its 2050 net-zero target
At Drax, we’re experts at finding opportunities in energy flexibility markets. And as energy suppliers, we’re perfectly positioned to highlight opportunities, manage the flexibility process and pass on the rewards to our customers.
Identifying these opportunities supports Grid stability. As we look to expand our customer base, we’ll be driving the potential for the UK’s energy optimisation and flexibility with it.
If you’re interested in earning extra revenue from flexibility, get in touch.Get in touch