First virtual balancing mechanism trade for Devon food firm

Edinburgh-based Flexitricity has facilitated the first sale of energy from a company's battery storage system to the national grid using its virtual power plant.

The move is a landmark for the balancing mechanism which allows SMEs to share in revenue previously restricted to the 'Big Six' energy retaillers.

Devon-based Philip Dennis Foodservice has two energy storage batteries managed by Flexitricity and connected to its virtual power plant. In response to an increase in demand, Flexitricity was able to aggregate the batteries to quickly fill the gap.

The transaction marks an important milestone for the GB energy market and highlights National Grid ESO’s focus on boosting real-time flexibility in the system and improving equality of access. Balancing mechanism wider access presents a huge opportunity for a range of flexible energy users, including EV users, domestic heating and energy storage, district heating, renewables and community energy projects, and industrial and commercial flexibility such as refrigeration, HVAC and lighting.

Flexitricity monitors the balancing mechanism and remotely alters the charge and discharge profile of Philip Dennis Foodservice’s batteries on site, in response to National Grid ESO’s requirements to balance supply and demand in real time. 

Historically the balancing mechanism has been dominated by large energy suppliers, formerly known as the ‘Big Six’. Now, as the country moves towards its 2050 net zero carbon targets, National Grid ESO and ELEXON have made changes to encourage smaller, more agile energy assets to contribute.

This change will improve system flexibility, which will facilitate renewable energy deployment and bring better value to consumers. New entrants to the market – like Philip Dennis Foodservice – will be able to reduce their environmental impact whilst creating additional revenue streams without disrupting day-to-day operations.

Peter Dennis, director at Philip Dennis Foodservice, said: “Energy used to be purely a cost for us and something that we didn’t have much control over. Now, by slightly altering our generation and consumption profile, in response to National Grid ESO’s requirement, we’re able to earn additional revenue that can be invested back into the business and gives us a competitive advantage.”

Andy Lowe, director at Flexitricity, said: “We are delighted to be the first to complete a trade in the balancing mechanism utilising this new route to market and are fully committed to helping more businesses like Philip Dennis Foodservice to access this revenue source.

“We have been working with businesses for over 11 years to maximise the value of their energy assets and now we can provide this service to thousands more businesses.

“Our focus has always been to build a decentralised, greener and fairer energy system where all energy users benefit – not just the big suppliers.”

Have your say...


Would you like to write your own Comment?



Your Comment

Your Name*
Please enter Your Name
Email Address*
Please enter an Email Address
Comment Subject*
Please enter a Comment Subject
Comments*
Please enter your Comments
 
RefreshPlay AudioHelp
 
I agree to the terms of use.
Please agree to the terms

There were errors. Please see the messages above.