Demand response aggregator Flexitricity has launched a new service to bring the flexibility of industrial and commercial energy users and small generators into the Balancing Mechanism.
Scottish Minister for Energy, Connectivity and the Islands, Paul Wheelhouse, welcomed the new scheme, which will give businesses direct access to both wholesale energy markets and the real-time electricity market National Grid uses to balance supply and demand.
Until recently, the Balancing Mechanism has generally been used by traditional energy suppliers, such as the Big Six, who have available capacity to sell – this is changing as generation assets become more distributed and decentralised.
Energy prices in the Balancing Mechanism can reach as much as £2,500/MWh, compared to around £50/MWh in wholesale markets.
The Edinburgh-based firm says its new service, dubbed Flexitricity+, will cut the cost for National Grid and all energy users, as well as offering businesses a chance to take advantage of additional sources of income.
Mr Wheelhouse said: “By taking advantage of the changing energy market, innovative products and services like Flexitricity+ can help to drive down costs for consumers and industry, champion innovation and growth and help us to meet the ambitions laid out in the Energy Strategy.”