- Renewable energy leader Drax is one of the first providers of a new service aimed at incentivising businesses to reduce their electricity demand at peak times to support energy security
- Enough power to supply 574,000 homes has been saved so far by a number of Drax’s participating business customers, from large organisations including Ford to SME’s like FI Real Estate Management, generating over £875,000 for them, and supporting their net zero goals
The Demand Flexibility Service (DFS) includes businesses with assets where demand can be flexed, including batteries, manufacturing processes and electric vehicle charge points Through the scheme Drax has already generated over £875,000 for its customers.
National Grid Electricity System Operator (ESO) is running the DFS to financially incentivise businesses to reduce electricity consumption when national demand is at its highest, typically on weekdays between 4pm and 7pm. Between November 2022 and March 2023, the ESO has announced that it will operate a maximum of 12 tests for participants.
Drax Energy Solutions has worked with a number of customers, including global vehicle manufacturer Ford and SME FI Real Estate Management, to reduce their collective power demand by 287MWh during these test periods – the equivalent amount of electricity needed to power 574,000 UK homes.
This additional flexibility helps National Grid ESO balance supply and demand amid the ongoing energy crisis caused by Russia’s invasion of Ukraine.
Drax’s customers are paid £3,000 per MWh to reduce their power consumption and with a reduction in demand of 287MWh observed during the test events conducted so far, a revenue of over £875,000 was achieved for participating customers.
Adam Hall, Drax’s Director of Energy Services said: “Drax Energy Solutions is one of the first approved providers of this service. Our business customers with flexibility in their operations can play a significant role in boosting Britain’s energy security whilst cutting their own electricity bills.
“Customers including Ford and FI Real Estate Management have agreed to be part of the scheme, adjusting their manufacturing processes and EV charging. This will deliver more flexibility and stability to the grid, by cutting their energy use at key times, which in turn contributes to their own net zero goals.”
FI Real Estate Management is one of the UK’s largest privately-owned commercial property management firms. They have over 40 years’ experience of owning and managing properties across the industrial, office, retail and residential sectors. John Corker, Advisor to the Managing Director & Chief Operating Officer said:
“We are constantly reviewing how we can reduce the environmental impact of our real estate portfolio, so we jumped at the opportunity to support this important UK initiative and look forward to increasing our participation in the scheme as future opportunities arise. We are committed to becoming a more sustainable company by implementing smart building technology wherever possible and installing electric vehicle charging points across the estate.”
The scheme was recently approved by Ofgem, and Drax is one of the first approved providers for DFS this winter.
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Drax Group’s purpose is to enable a zero carbon, lower cost energy future and in 2019 announced a world-leading ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) technology.
Drax’s around 3,000 employees operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production and supply to third parties. For more information visit www.drax.com
Drax supplies renewable electricity to UK businesses, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.
To find out more go to the website www.energy.drax.com
Demand Flexibility Scheme
The Demand Flexibility Service (DFS) has been developed to allow the ESO to access additional flexibility when the national demand is at its highest – during peak winter days – which is not currently accessible to the ESO in real time. This new innovative service will allow consumers, as well as some industrial and commercial users (through suppliers/aggregators), to be incentivised for voluntarily flexing the time when they use their electricity.
As part of a range of tools designed to help manage the electricity system this winter, National Grid are collaborating with energy suppliers/aggregators to allow participating consumers and businesses to reduce their bills this winter.