Reducing the amount of electricity used at peak times of the day provides intensive energy users with opportunities to reduce operational costs and generate new, long-term, recurring revenue streams while supporting the UK’s green goals through renewable energy.
However, not all demand-side-response (DSR) services are the same. Many aggregators, whose early business models relied on reserve-balancing schemes with slower response times, are finding that profit margins no longer exist. Older, reserve balancing schemes are based on post-fault notifications rather than real-time grid frequency events and may require equipment to be turned off for up to two hours. Revenues are now far lower for these outdated schemes. In fact, you might say that the market for traditional reserve balancing services, such as short-term operating reserve, is dead.