Efficiency, the capacity market and offsetting bills

Just last month we saw Energy Minister, Matthew Hancock, come under pressure from MPs to do more to encourage business investment in demand-side response (DSR) initiatives. It's clear that many groups across businesses and government feel that more can be done with the capacity market to protect industry. At the core of the capacity market is a reliance on all capacity providers, whether existing power stations and electricity storage or voluntary demand reductions, to provide capacity to the National Grid, when needed, to keep the lights on during the winter period. For businesses, this provides an opportunity. Through DSR initiatives, companies can reduce their consumption at peak demand times, with a four hour notice period, to earn revenue for switching off and relieving pressure on the grid. But this reduction of energy during peak times is just one side of the capacity market. We're encouraging manufacturers with onsite energy generation capabilities to take advantage of their existing assets to earn additional revenue and offset the costs of their energy bill. By taking part in a scheme such as SmartSTOR, sites can switch between using existing onsite generation, such as back-up generators, and using power from the grid, enabling each location to contribute to the grid by exporting excess energy at peak times. In this way it is possible for businesses to generate an income from excess energy by supplying to the grid at peak times. With many companies unsure on where to spend their money on energy, it is through a combination of energy efficiency and intelligent use of additional on-site assets that businesses can save costs on their energy bills in the immediate future and, for manufacturers, onsite generation is an often forgotten asset that can positively impact the bottom-line. The SmartSTOR service means that customers not only receive payments for the energy they pump back into the grid, but also benefit from the flexibility of supply around costly triad periods during the winter months. We're encouraging manufacturers to get in touch with their supplier to understand exactly how, as we approach the costly winter period, they can offset bills by making use of existing assets and reducing energy consumption from the grid. If you would like any further information on energy solutions for your business, the dedicated team would be happy to hear from you on: business@npower.com