Dong Energy seeks to cut balancing exposure by using large-customer flexibility

Dong Energy is acting to reduce its imbalance costs by inviting business customers to reduce their demand at times when wind generation is low and increase when it is high – and share the savings.
In the so-called Renewable Balancing Reserve product, large business customers will be invited to adjust their energy consumption when wind strength varies from that forecast.
The company said that as the operator of the largest offshore wind portfolio in the UK and a supplier to an increasing portfolio of business customers the new product will “help balance its portfolio and fulfil generation contracts in the most cost-effective way”. It will invite customers to either turn down consumption or increase on-site generation production – reducing intermittency in grid supply and also creating a new revenue stream by sharing the cost savings that result.
Dong Energy said a unique aspect of the product was that customers can choose whether to participate, without commitment, during any half-hourly period throughout the year.  There are no financial penalties involved for failure to respond, and it is not restricted to winter peak period.
Jeff Whittingham, managing director of Dong Energy Sales UK said: “Renewable Balancing Reserve is different, provides businesses with an alternative way to reduce costs and create new revenue, without the risk of penalties or restrictive schedules.”
The service operates via a web-based portal, so no hardware installation is required. Interested businesses set the times during which they can participate, along with the minimum price per MWh that they are willing to accept. Based on those customer settings, DONG Energy alerts relevant businesses of the times during which they need businesses to turn down consumption or ramp up on-site generation, along with the revenue available (based on Elexon imbalance costs).
Businesses then confirm whether they wish to participate and the volume that the can contribute: there is no firm commitment and no penalty for non-participation. Participating businesses receive a £/MWh payment based on their actual consumption change during the RBR period.


Read more on demand response initiatives from Flexitricity and National Grid

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