Public Sector can generate new revenue from existing electricity assets
Flexitricity to deliver demand response technology to public sector through new framework agreement.
Flexitricity Limited (www.flexitricity.com) today announced it has been awarded participation within a new Demand Side Response framework that will benefit public sector organisations who wish to generate new revenue from existing electricity generating or consuming equipment.
Fluctuations in electricity supply and demand dictate that some capacity must always be kept in reserve to keep the transmission and distribution system in balance. Traditionally, much of this reserve came from fossil fuelled power stations; which is both expensive and carbon intensive. Today, it’s possible and more efficient for organisations on the demand side to provide some of the flexibility needed to balance the system. This is known as Demand Side Response.
Flexitricity Limited created and operates the first, largest and most advanced smart grid system in the UK and through this enables contracting bodies to deliver reserve energy via a range of innovative demand side response services. Public sector organisations, who work within the parameters of this new Framework Agreement, can now gain access to benchmarked pre-authorised Demand Side Response services; this will provide them the capabilities to either curtail their consumption of electricity or utilise their on-site generation capabilities in response to the demands of national and local grid systems.
National Grid and the distribution network operators (DNOs) remunerate Flexitricity to hold reserve. In addition, further payments are made when this reserve is accessed. Flexitricity shares these payments with participating energy partners which can reach £100,000 per annum on a medium sized site.
The public sector estate, which includes central government departments, non-departmental public bodies, NHS bodies and local authorities, is vast and diverse, using an estimated 10% of total UK electricity demand. Whether it is a hospital, RAF base or multiple local authority buildings, Flexitricity can unlock revenue for those departments and agencies and aid them in achieving their financial and sustainability targets, whilst assisting national and local grid infrastructure with suitable demand and supply.
“We are pleased to be in the new Demand Side Response framework and we look forward to helping more public sector organisations generate revenue from their existing assets,” said Ron Ramage, Chief Executive Officer, Flexitricity. “We are the UK’s leader in the provision of aggregated demand response services, delivering a range of fully automated solutions that are defensively engineered and robust. This Framework Agreement provides an excellent vehicle for public sector organisations’ across the country to access services appropriate to their operations and unlock revenue.”
Flexitricity’s national service already supports many commercial organisations and a growing number of Government departments.
“As energy costs climb for everyone, not only will demand response programs help curtail electricity usage, these programs do it in a way that does not interfere with the critical infrastructure of our nation's government sites and help maintain budgets for doing the real work of supporting the UK,” said Scott Buckleton, Head of Business Development at GPS.
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About Government Procurement Service
Government Procurement Service (GPS) is part of the Efficiency & Reform Group in the Cabinet Office, connecting policy with delivery. GPS’s overall priority is to provide procurement savings for the UK public sector as a whole and specifically to deliver centralised procurement for central government departments. GPS’s remit extends across central government and the UK public sector including local government, health, education, devolved administrations, emergency services, defence and not for profit organisations. Please note: our framework agreements cannot be used by the general public. Working with over 14,500 organisations in central government, health, local government, devolved administrations, education and the not for profit sector, GPS managed over £8.4bn of customer spend through our procurement arrangements and services in the 2011-12 financial year. http://gps.cabinetoffice.gov.uk