Demand Response: FAQ
Why such a hype for DR? Why are regulators pushing for DR?
Our electricity grids are at a pivotal moment of their existence. The energy transition is fast accelerating and more and more renewable energy sources are replacing fossil fuel fired power plants. That means less CO2 emissions, but also a more variable and less predictable production pool. This growing variability of the production capacity is a challenge, as the production has to match the consumption level at all times in the grid. One of the solutions is to push for more flexibility in the consumption patterns. That’s why regulators are so enthusiastic about Demand Response.
How will my flexibility be turned into €?
ENGIE buys your flexibility and find at any moment the best way to valorize your flex: it can be sold to the TSO, used to manage our portfolio or sold on the wholesale markets.
There are two possibilities. The first is to be selected by the Transmission System Operator ( TenneT in the Netherlands, RTE in France, Elia in Belgium and ….. in Germany) to take part in one of the reserve mechanisms dedicated to Demand Response. ENGIE will take care of all the administrative procedures implied by taking part in the call for tenders, and guarantee you a minimal income if your offer is not selected by the TSO. The second option is to offer your flexibility directly on the market: when prices are high enough, your flexibility is sold, as a means of production like any other. In any case, we agree with you on a contract, and we take care of the rest.
What’s in it for me?
By signing up for DR, you win on three fronts: you start a more proactive energy management, you get paid for it, and you are enabling the energy transition.
When and why will I be activated?
To ensure the stability of the electricity grid, the injection has to match the off take of electricity at all times. When it is not the case, additional resources have to be activated. Your DR contract will be activated when there is a tension in the market on the supply demand balance.. Depending on the product you choose, you can be warned of the activation the day before at 5 PM, or two hours before on the same day, down to ten minutes if your process allows it.
Why choose Global Energy?
If you already chose Global Energy as your electricity supplier, you will enjoy having a single point of contact for your entire energy management. Your Key Account Manager knows your needs and he will offer you the product that best suits your abilities. Global Energy also offers its unique expertise in energy management and trading to all businesses. By choosing us for your DR contract you will be sure to benefit from our experts’ top level insight on your flexibility, from our trader’s operational excellence, bringing you the best from the power markets, and from your Key Account Manager’s expertise to take you smoothly and effortlessly through the whole process.
Where can I find flexibility?
It is difficult to give a general answer to this question. We have to study your case specifically. Your Key Account Manager can take your through a quick questionnaire to screen your site for potential flexibility sources. We can however give you a non exhaustive list of possible flexibility pockets:
- Cold chambers
- Electrical furnaces
- Pumps, compressors,
- On site generation (back-up generators, CHPs, …)
- Specific production processes that can be slowed down of stopped. Often this is possible when there is a buffer in the process (stocks are present, production line is not “just-in-time”, …)
Can you help me identify flexibility on my site?
Yes, we can! In addition to the quick questionnaire you can go through with you KAM, we can offer you a full flexibility audit by our experts. If you sign up afterwards, it is completely free! Contact your KAM for more detailed information.
Do I need to install technology on my site?
Not necessarily, but if it is the case, we will do it for you. Depending on your process, and on the product you choose to contract, you might need to automate the reaction of your process to the activation signal we will send you. Your KAM will identify with you what the best solution is for you.
Why will I “go green” if I sign up?
By signing up for Demand Response, you are making the electricity grid more flexible on the demand side of things. This counterbalances the fact that the production of electricity is becoming increasingly variable with the integration of intermittent energy sources (wind turbines, solar panels). You are therefore helping the energy transition, and the increase of the share of renewables in the production of electricity.
Will my production be impacted?
It’s up to you to decide: what you want to shut down, for how long, how often, and most of all the price at which you are willing to do so. Some of our customers have decided to shut down an entire production line, provided they receive a sufficient remuneration, other prefer focusing on non-essential processes.