Total Gas & Power and UK Power Reserve (UKPR) have joined forces to help manage and deliver demand side response services to electricity market players.
Businesses will be able to use UKPR’s established position as an owner and operator of power assets and its first-hand knowledge of the needs of National Grid and distribution operators.
It comes as National Grid will run its Transitional Arrangements Capacity Market auction on 22nd March.
It will target medium to large energy users, such as refrigeration facilities, factories and farms, which are able to reduce consumption, particularly during periods of peak demand.
The auction will create a number of opportunities for end users to drive cost savings and generate new revenue streams.
The last auction cleared at £27.50/kW, however this year it is expected to clear “significantly higher” due to a number of rule changes which have excluded certain types of generation from bidding.
It will be the last dedicated auction for demand side response (DSR) before it is merged into the main Capacity Market auction.
As the UK’s electricity system becomes increasingly decentralised, National Grid said it hopes to secure as much as 50% of its balancing services capacity from DSR.
The new alliance is expected to help simplify the process as the two organisations are in a “unique position” to help consumers take advantage of the shift to a more flexible system.
They will work with businesses to identify their supply and demand behaviours and leverage them to access rewards.
UKPR has successfully provided energy services, including aggregation and balancing services, to CHP operators and large industrial users such as Pilkington and Network Rail.
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