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Dong Energy enters demand-side response with wind power balancing service

wind-turbine-building-avedore-fullDong Energy has entered the demand response market with its own wind power balancing tool. It wants large business customers to shift power loads according to wind strengths.

By turning down consumption or shifting to on-site generators, they will earn revenue from the wind farm operator and business energy supplier, which is also Denmark’s largest energy company.

The move comes as National Grid, network operators, energy suppliers and aggregators ramp up demand-side response activities.

Energy suppliers are likely to look at new ways of balancing their generation portfolios following regulatory changes to the balancing and settlement regime, which makes it much more expensive if they get the balance between generation and energy supply wrong.

Meanwhile, government has warned that renewable generators will be made to foot the bill for balancing intermittency, although it has not yet outlined precisely what that means.

All year round

Dong said its Renewable Balancing Reserve service means customers can participate without commitment at any point during the year. Most other demand response programmes operate purely during winter peaks.

The prices it will pay customers will be based on actual imbalance costs, and those that participate will receive a per megawatt hour price based on how much load they shifted during the period.

Dong said the service will run via a web-based portal, and require no hardware installation.

“DONG Energy is investing in the development of new commercial solutions to balance an intermittent generation portfolio, whilst helping businesses to use their flexibility to create value,” said Jeff Whittingham, managing director of Dong Energy Sales UK. 

“Renewable Balancing Reserve is different, provides businesses with an alternative way to reduce costs and create new revenue, without the risk of penalties or restrictive schedules.”

Interested in finding out more about demand-side response? Be sure to reserve your seat at Energyst Media’s free DSR conference, xx September, London. Register here.

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