Energy consumers in the country could save £2.3 billion by 2035 thanks to demand side response (DSR).
That’s according to a report from the Association of Decentralised Energy (ADE), which added as much as £600 million could be saved by the end of this decade.
It highlights how DSR could help the sector fill the gap in keeping the nation’s electricity supply and demand in balance, as well as reduce emissions and meet the country’s carbon targets.
The report added manufacturing sites, hospitals and retail stores can address the UK’s electricity capacity concerns as they can provide up to 16% (equivalent to 9.8GW), of the UK’s peak electricity required.
ADE Director Tim Rotheray said: “Keeping the lights on and our factories running is becoming increasingly challenging as the electricity market changes. We are building more wind and solar, which cannot always be depended on and we are seeing our traditional large nuclear and coal power plants close down.
“If we are to meet this challenge successfully, we need to access the enormous resource that energy users can provide, whether they are NHS hospitals, pharmaceutical manufacturers or your local retail store. Today’s report shows that by putting these users at the heart of the energy system, we will make it more cost-effective, reduce carbon emissions, and give customers a chance to participate in the system and take control of their energy use.”
DSR is a scheme launched by National Grid which engages energy users to manage their power use and onsite generation to help the electricity system in return for payments.