New DSR initiative set to boost revenues for flexible firms

Western Power Distribution (WPD) has announced a new demand side response (DSR) service aimed at helping business customers generate revenues from their energy flexibility while managing constraints on the local network.

The Flexible Power Service will run from Q4 2017 to Q3 2020 and will seek to manage customers’ consumption, or on site generation, at times that are most beneficial to the national and local grids.

Working with DSR aggregator Kiwi Power, WPD will signal the small and large electricity users taking part in the scheme to change their energy profile to reduce their bills whilst also helping the local network.

Flexible Power will offer three core revenue sources to its customers including STOR, whereby National Grid requires reserve power to deal with higher than expected demand, and Triad avoidance for high energy users able to lower peak winter demand.

These revenue streams stem from the embedded benefits of connecting to the distribution network rather than the transmission system. However, due to the growing strain on local energy systems Ofgem recently announced that it would review the embedded benefits regime, drastically cutting payments made for these services by 95 per cent.

However, in a sign of the changing model from district network operator (DNO) to a district network operator (DSO), WPD will also offer revenue through its Flexible Power Services.

These will help manage the local network, with the product based around five zones within the trial area, providing different services associated with different electrical assets that are being managed.

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