Demand Response

Demand Side Management

FlexyWatt is a dedicated solution for energy management systems.Today, we are experiencing a gigantic global transformation in the energy world.

We provide an intelligent, cloud based, AI driven solution to digitising energy consumption and storage to decrease cost of energy consumed or even earn extra income, while contributing to tackle the problems posed by energy transition.

Generation, distribution and consumption of energy is going through an era of profound change. Increasing intermittent renewable and distributed generation, onset of electrical vehicles and electrification of consumption is posing major challenges to balancing of the grid by the grid operators. The new energy scenario calls for additional tools for the grid operators to balance the increasingly unpredictable energy supply and demand.

Fortunately, grid operators and utilities have a powerful tool to manage these periods of generation and consumption mismatches, enabling them to guarantee stability of the grid, quality of electricity and service. Demand Response (DR), which is part of Demand Side Management (DSM), is a strong tool used by electricity utilities to instantaneously control demand by remotely modifying their level and pattern of electricity consumption according to grid balancing requirements.

Demand Response is an IoT based system, where consumers’ consumption profile is adjusted on an hourly basis to lower its electricity bills and earn additional income by providing the grid operator grid stabilizing services. Demand Response service utilizes the flexible energy consuming assets of consumers based on the customers’ specific modus operandi. Consumers’ operation is not affected. DR system incorporates live electricity market data, AI supported price and demand forecasts in the energy markets served and modus operandi of the customer to determine the most optimal operating solution. Within this scheme, power consumption of connected assets can be curtailed, time-shifted or ramped up.

What is Demand Response?

Why is Demand Response important?

Demand Response is the most cost effective and environmentally friendly solution to the system flexibility deficit posed by the increasing renewable penetration in the energy generation mix. With little investment, DR can facilitate the provision of flexibility service to the energy markets and ancillary services markets. While providing this service, no extra green house gas (GHG) emissions are caused. On the contrary, avoiding peak hours and reducing system congestion helps reduce GHG emissions. Additionally, owners of flexibility assets can save on energy costs and earn extra income by helping provide flexibility services to grid operators. Alternatives to DR would be costly investments in flexible power generation and grid scale power storage systems, which are known to have environmental impact.

If a consumer can be flexible with its electricity usage, it can participate in a Demand Response program and turn its flexibility into additional revenue stream while accessing lower energy prices as it shifts its consumption to off-peak hours.

Demand Side Response also offers a way for EV charging providers to reduce costs, monetize flexibility, reduce the impact of peak demand on the grid, and participate in assuring grid stability while supporting environmental strategies and aiding in reduction of GHG emissions.

Demand Response is one of the main pillars of sustainability, both for flexibility providing energy consumers and for the stakeholders of power generation and distribution.

By choosing to be part of the aggregated DR portfolio, a consumer can benefit from the following advantages:

Reduce total energy costs: One of the most significant benefits of DR is the reduction in total energy costs, without any effect on total output or service level of a facility.
Earn additional income: In addition to the reduction in energy bills, a consumer can earn additional income by providing services for the grid operator.
Benefit from IoT connectivity: Connected consumers Become part of the energy market as a service provider, Monitor and report individual energy consuming assets.

A transmission system operator utilizing DR strategies will enjoy various benefits:

Soften price spikes: Shifting demand from peak hours to off peak hours will soften price spikes.
Manage grid congestions: Shifting demand to off peak hours, peak shaving or local load increase will help manage any possible grid congestion at times of high consumption or high generation.
Manage quality of electricity: Provision of real-time balancing and ancillary services (such as PFR-Primary Frequency Reserve or SFR-Secondary Frequency Reserve) by the DR participant consumers, will help the grid operator manage the balance and the frequency of the grid much more efficiently.
Increase the capability of the grid to incorporate more renewables: As the grid congestion and quality of electricity are managed more effectively, the grid will be able to incorporate more intermittent renewables, thus helping lower energy-related GHG emissions.

What are the benefits of Demand Response?

Demand Side Management vs Demand Response: what are the differences?

In essence, while Demand Side Management is a broad approach to managing energy demand and consumption over an extended period, Demand Response (DR) is a real-time solution to address immediate grid needs while improving energy management.

Demand Response (DR) is an energy flexibility program falling under the umbrella term of Demand Side Management that compensates companies who agree to modulate their energy consumption. Although the two terms are often used interchangeably, demand response vs demand side management refers to the difference in the focus of the two programs. While the focus of demand side management programs is to reduce energy demand over the long term, with demand response the focus is on activities that reduce or shift electricity demand in response to real-time events on the grid, therefore addressing short-term fluctuations in demand or supply.