Companies win contracts for reducing power demand

National Grid has contracted 319MW of Demand Side Balancing Reserve (DSBR) across 431 individual sites, to be available this winter.

Demand Side Balancing Reserve will enable large energy users to reduce their demand or run other sources of generation during peak periods in return for a payment. The service will be available for short periods between 1600hrs and 2000hrs on weekday evenings between November and February.

Contracts have been awarded to a range of businesses, including Tata Steel and Flexitricity, to help National Grid have the tools it needs to balance the power grid.

The companies will reduce their power demand or switch to on-site generation at periods of peak demand, if called upon. They will receive payments from National Grid to ensure that they are appropriately compensated for providing this service.

Contracts include

• A contract with Tata Steel to manage its electricity demand for short periods at three sites to support National Grid in balancing the system
• A contract with Flexitricity to provide additional balancing reserve via a sub-set of their Energy Partner portfolio situated throughout mainland UK. This incremental capacity complements that already being provided by Flexitricity for low frequency response and reserve power delivery.

Peter Bingham of National Grid said

"We are encouraged by this first tender round and we think that the extra security these contracts provide is good value for consumers. We are keen to promote and stimulate demand side services and will continue to talk to the industry to make the DSBR product mutually beneficial."

"These contracts will add to the tools that National Grid has to balancy supply and demand throughout the winter in its role as electricity system operator."

National Grid will hold two tenders for 2015/16 DSBR winter requirements - the first to be opened in October 2014 and the second in spring 2015.

Contact for media information only:

Mark Malbas

Press Officer National Grid Photos: For photos relating to this news release please visit the National Grid photo stream.

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Notes for Editors

For more information about National Grid’s balancing services, see http://www.nationalgrid.com/uk/electricity/additionalmeasures

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