The National Grid is ring-fencing a space in its emergency power back-up scheme for demand side response (DSR).
At the moment, demand side aggregators – companies which work with many businesses to lower or boost their energy use to help balance the grid – must bid into the scheme alongside other power generators.
The grid operator believes they need a helping hand as demand side is relatively new to the energy market.
It is reserving 200 megawatts (MW) out of the 2 gigawatts’ (GW) worth of back-up it can call upon via the Short Term Operating Reserve (STOR) scheme.
Called STOR Runway, demand side operators have a year to line up businesses to participate, instead of needing to have them lined up already, something the grid believes has “held back” the sector so far.
Writing in a blog, Duncan Burt, Head of Commercial Operations for National Grid said: “We’re removing the requirement to have already secured megawatts before bidding in. Participants will have one year to recruit sites and companies to meet the volume they have committed to providing us. To keep STOR Runway open to as many participants as possible, we’re limiting the amount to no more than 30MW per provider.”