Firms lined up to use less power for cash

Major energy users that will reduce their power demand or switch to on-site generation at times of peak demand in return for a payment have been announced. National Grid has […]

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By Priyanka Shrestha

Major energy users that will reduce their power demand or switch to on-site generation at times of peak demand in return for a payment have been announced.

National Grid has signed contracts with companies including Tata Steel and Flexitricity as part of its Demand Side Balancing Reserve (DSBR) initiative.

It has awarded total contracts worth 319MW across 431 individual sites for this winter.

The arrangement will apply between 4pm and 8pm on weekdays between November and February.

Peter Bingham from National Grid said: “We are encouraged by this first tender round and we think the extra security these contracts provide is good value for consumers.

“These contracts will add to the tools that National Grid has to balance supply and demand throughout the winter in its role as electricity system operator.”

National Grid will hold two tenders for 2015/16 DSBR winter requirements – the first to be opened next month.

Earlier this month it launched a tender for another scheme to tap extra electricity capacity for this winter following a number of unexpected plant outages.