In both the UK and mainland Europe, the pursuit of energy independence has become a critical objective, driven by infrastructure challenges and geopolitical considerations. This pursuit has driven investment in renewable energy generation, predominantly solar and wind on an unprecedented scale, which has in turn created complexities in the energy markets that have opened up a market for flexibility services in energy management.
The UK’s historical underinvestment in power distribution has led to scenarios where local demand exceeds network capacity, resulting in triad charges and potential enforced demand reductions during peak times.
This situation seems to be particularly acute in regions such as the Midlands, London and the South East of England.
Similarly, mainland Europe faces its own set of challenges.
The recent disconnection of the Baltic states from the Russian power grid underscores the region’s commitment to energy autonomy. This strategic move aims to enhance security and reduce dependence on external energy sources.
However, the intermittency of output of both solar and wind generation leads to peaks of overproduction during low demand periods and troughs of under supply at times of high demand. This in turn affects the electricity market price, sometimes to the point of negative pricing when solar and wind output is at its highest and furthermore damaging the value proposition of renewable energy investments.
As Matt Batey, the New Business Lead at Watts-ON, and a key player in the energy transition from the early days of renewable energy, explains: “Storage technologies, though developing at a fast pace, are still not mature at a large scale or for seasonal storage applications. Efforts are now being made to match consumption to renewable generation at the time of use, such as the Carbon Group’s 247 Carbon Free Electricity campaign. This initiative aims both to drive improvements in power generation management to be more aligned with demand and to shift demand to be more flexible to align with generation peaks.” As a result Demand Side Management (DSM) is emerging as a key and pivotal strategy to enhance this flexibility.
By optimising energy consumption patterns, DSM not only reduces stress on the grid but also offers consumers the flexibility to manage their energy use efficiently and at optimal utility supply cost.
This approach is instrumental in reducing peak energy consumption, thereby helping to avoid grid capacity issues and associated costs. Furthermore, providing flexibility services to support grid management, reducing congestion, can become an additional income stream for your asset.
At Watts-ON Consultants, we specialise in helping our clients in real estate asset management and operation to harness the full potential of DSM in their assets.
Our systematic approach enables these businesses to:
- Reduce Peak Consumption: Implement strategies that minimise energy use during high-demand periods without disrupting normal business operations.
- Identify Energy Cost Reduction Opportunities: Analyse and uncover areas where energy expenses can be reduced, leading to significant savings.
- Enhance Energy Efficiency: Adopt solutions that not only conserve energy but also contribute to decarbonisation objectives.
Our expertise ensures that our clients achieve a secure and reliable energy supply, moving towards total or near-total independence from the grid.
By using our knowledge and flexible solutions, businesses are well-positioned to navigate the complexities of the current energy markets and emerge stronger.
Taking advantage of Demand Side Management is not merely about responding to present challenges; it’s about taking action to shape a sustainable and resilient energy future.
With Watts-ON Consultants as your partner, you can confidently move towards energy independence, well equipped to thrive in an ever-changing landscape.