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.
- 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.
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Notes for Editors
For more information about National Grid’s balancing services, see http://www.nationalgrid.com/uk/electricity/additionalmeasures
National Grid is one of the largest investor-owned energy companies in the world. We own and manage the grids that connect people to the energy they need, from whatever the source. In Britain and the north-eastern states of the US we run systems that deliver gas and electricity to millions of people, businesses and communities.
In Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country. In the North Eastern US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles.
National Grid in the UK:
- We own the high-voltage electricity transmission network in England and Wales, operating it across Great Britain
- We own and operate the high pressure gas transmission system in Britain
- Our gas distribution business delivers gas to around 11 million homes and businesses
- We also own a number of related businesses including LNG importation, land remediation and metering
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- Our portfolio of other businesses is mainly concerned with infrastructure provision and related services where we can exploit our core skills and assets to create value. These businesses operate in areas such as Metering, Grain LNG Import, Interconnectors and Property. National Grid Carbon Ltd is a wholly owned subsidiary of National Grid and it undertakes Carbon Capture Storage related activities on behalf of National Grid.
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