Notes to editors
About DONG Energy
DONG Energy is one of the leading energy groups in Northern Europe, headquartered in Denmark. Around 6,700 ambitious employees are engaged in producing energy from offshore wind farms, bioenergy and thermal heat and power plants, oil and gas fields as well as providing energy solutions to residential and business customers. Group revenue was DKK 67bn (EUR 9.0bn) in 2014. For further information, see www.dongenergy.com
- Ofgem's Flexibility Study, published 30th September 2015, highlights the need for businesses to use energy flexibly to support UK system balancing, as the generation mix becomes more intermittent: https://www.ofgem.gov.uk/sites/default/files/docs/2015/09/flexibility_position_paper_final_0.pdf
- National Grid's Power Responsive initiative is designed to drive a collaborative approach across a range of industry stakeholders to deliver flexible solutions at scale by 2020: http://www.powerresponsive.com/
As the operator of the largest offshore wind portfolio in the UK and a supplier to an increasing portfolio of British businesses, DONG Energy has created the Renewable Balancing Reserve product to help balance its portfolio and fulfil generation contracts in the most cost-effective way. DONG Energy will invite customers to either turn down consumption or increase on-site generation production when the wind blows more or less than forecast, helping to keep the system balanced and reducing the need to call on conventional or more expensive generation sources to make up the gap. It gives customers the opportunity to reduce intermittency in grid supply and also creates a new revenue stream by sharing the cost savings that result.
DONG Energy customers can choose whether to participate, without commitment, during any half-hourly period throughout the year. By reducing exposure on the wholesale market for imbalance, DONG Energy is able to share savings with customers and is creating an innovative way to operate a 100% renewable portfolio year-round.
As the UK energy mix becomes increasingly intermittent and supply margin tightens, there is a greater requirement for businesses to support system balancing using on-site generation or unlocking flexibility from large consumption assets without impacting operations or production schedules. Renewable Balancing Reserve forms part of DONG Energy's flexibility product range, which helps customers to manage their consumption more intelligently, save energy costs and generate revenue from greater flexibility.
Jeff Whittingham, Managing Director of DONG Energy Sales UK comments:
"DONG Energy is investing in the development of new commercial solutions to balance an intermittent generation portfolio, whilst helping businesses to use their flexibility to create value. 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."
Unlike other Demand Side Response schemes, Renewable Balancing Reserve requires no commitment, with business customers able to choose whether to participate at each occurrence. There are no financial penalties involved for failure to respond, and unlike most schemes it isn't restricted to winter peak period; Renewable Balancing Reserve runs throughout the year.