Western Power Distribution and battery storage provider Anesco have signed a Demand Side Management Agreement.
The deal between the electricity distribution company and its customer commits the latter to operating its electricity consumption at a lower capacity during a pre-determined period of time, in return for reduced extra high voltage charges.
The agreement is thought to be among of the first of its kind in the UK – rather than just using flexibility to earn revenue, the new deal means it is also possible to provide flexibility to the system in a way which reduces the assets operating costs.
Western Power Distribution notes energy storage asset owners and operators need to be aware not just of their revenue streams but also of their operating costs and how the two interact.
Simon Yeo, Income Manager for WPD, said: “This approach benefits both Anesco and WPD’s wider customer base in providing long term network security while reducing the need and cost for additional network reinforcement.
“It also demonstrates the benefits of battery storage in a world of network capacity constraints.”