The UK’s electricity system has changed dramatically over the past decade, with renewables increasingly contributing to the energy mix. However, one thing hasn’t changed: the need for electricity supply to always meet demand.
Matching electricity supply to demand is crucial to keeping the grid stable.
Electrical frequency is a factor of power supply that’s carefully managed to keep a country’s lights on. UK’s grid operates at a frequency of 50Hz – a deviation of more than just 0.2% can cause outages and damage grid equipment. So, when there’s a spike in electricity demand, the supply must increase to meet it.
This becomes challenging in a system increasingly dependent on intermittent renewables, like wind and solar, that are unable to generate power if weather conditions are unfavourable.
Demand side response (DSR) offers a solution to maintaining the balance by creating flexibility in demand.
Businesses can participate in the DSR markets by reducing their electricity consumption when demand is high or increasing it when supply outweighs demand. Generators can also take part by increasing supply at a moment’s notice when demand spikes.
DSR markets allow businesses to not only help the grid operate reliably but also enable them to generate revenue and reduce electricity costs across the supply chain.
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