A growing number of businesses are starting to look at Demand Side Response (DSR) as part of a holistic energy management strategy. But for many, there’s still a lack of awareness of why it’s such a useful tool – and often some popular misconceptions that make DSR seem out of reach. Dan Connor, DSR Development and Delivery Manager at Energy HQ, debunks some of the most common myths to show why – and how – more businesses can benefit.
- You need to be a large business to embrace DSR
Not at all. Business of all sizes can get involved with DSR on some level. As both a supplier and an aggregator, we are uniquely positioned to identify DSR opportunities within our customers’ portfolios. Using all site data (Half-Hourly consumption, import/export capacities etc), we can then highlight which DSR solutions would be most appropriate focus and the benefits these could deliver.
- Businesses have to embrace DSR across all sites
This is not the case at all. We recommend starting with one site which you know and understand well. A site with significant consumption over the winter peak periods will allow for maximum cost savings and improve the payback period should investment be required. Any locations with existing generation assets can provide quick returns, and through Wholesale Market Access, we can deliver additional value for any Triad avoidance activity you may be undertaking on a site-by-site basis.
- The cost of setting up DSR outweighs the benefits
If set up and managed correctly, then this is not true. The benefits of DSR are many and varied. Money talks and with benefits of between £50k-£120k per megawatt, the business case can be very compelling. What’s more, DSR will help you become more competitive as a business and you can benefit from improved site resilience with the regular use of any asset at site. There are also environmental benefits to DSR, as it supports the increase of renewables as part of the UK generation mix.
- DSR is difficult to manage as you have to work with numerous different parties
This doesn’t have to be the case. Certainly, some businesses do work with more than one agent – for example, an aggregator and a supplier – and they may each have different and sometimes competing agendas. But it’s also possible to work with just one party. For example, at npower Business Solutions, we are both a supplier and an established aggregator. We work with businesses from the start of their journey to help them understand and assess the opportunities available, and ensure there is no conflict of interest – for example, between supply volume tolerances and the volume saved by participating in DSR. Moreover, we can actually squeeze extra benefits from the wholesale market for your DSR activity if you’re also on supply with us.
- DSR is a risk to a business’s energy supply
This is one of the major misconceptions about DSR. We in fact find that utilising standby assets or installing new assets for DSR has the opposite effect. Resilience is actually increased for a business because assets that previously weren’t used very often are operating more regularly. Proactively using an asset also ensures it is well maintained and can better respond when needed. This provides enhanced site resilience.
To find out more about DSR and how it can benefit your business, contact Dan and the DSR team at [email protected] or call 0800 994 9382.
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