Balancing & Peak Management Services

Generating a passive income from balancing services

The country’s electricity networks come under stress at times for a variety of reasons but most often due to the variability in the weather causing the output from wind turbines and solar panels to go up and down. The UK’s electricity system is very sensitive to imbalances in supply and demand and if it varies too much, the electricity system has to be shut down, resulting in blackouts.

If you use an Aggregator such as OakTree Power to adjust your facility’s electricity consumption a small amount for a short period of time when these fluctuations occur, you receive a payment from the grid operators. Your ability to offer this adjustment when called on is termed Demand Side Response (DSR) and the degree of adjustment to your facility’s electricity consumption is called its Flexible Load.

There are actually a range of different balancing programmes which grid operators use depending on such things as speed of response, duration, price, location, time of day and season.

Find out how much you could earn from Demand Side Response using our Energy Benefits Calculator

Flexible Load

OakTree Power continuously scans the balancing services markets looking for the most lucrative opportunities to sell its customers’ Flexible Load, effectively ‘stacking’ revenues across multiple markets and optimising income streams for you.

This is great news for facility owners with enough Flexible Load to be eligible and willing to participate in balancing service markets. However, as grid operators need DSR in large ‘chunks,’ most often, the amount of electricity you can adjust in your building is below the threshold required.

OakTree Power’s technology is required to access the Flexible Load in your facility and aggregate it with that from others to deliver the levels grid operators need to balance the grid.

Receive an ongoing passive income

See no impact on the performance of your facility

Have no installation or operating costs – the solution is fully funded by OakTree Power

Remain completely in control, agreeing when your facility participates

Take a role providing a vital tool to enable the growth of renewable generation

Provide a clean resource and lower your carbon emissions – helping you meet your net zero ambitions

Energy Cost Savings from Peak Management Services

Using its digital technology, OakTree Power remotely reduces or shifts electricity consumption in your facility at times when OakTree forecasts Peak Time demand tariffs will be applied to your energy bill, proactively managing your electricity consumption and maximising energy cost savings.

The busiest time in the UK to provide electricity to a facility is Monday to Friday 4pm to 7pm – the ‘Peak Time’.

This is when consumers collectively make the most demands on the transmission and distribution grids. Offices, factories and shops are still in use and families have begun to return home from school and work to start their evening activities, turning on lighting and electrical devices.

Download our white paper now to appreciate the full picture. The UK energy sector is decarbonising with renewable technology quickly replacing old-style coal and gas-powered generation. Green Demand Side Response is part of the change that will help us achieve Net Zero and your organisation can be part of that evolution.

Power can cost up to 1,000 times more at peak time.

Peak time: 4pm to 7pm Monday to Friday, the busiest time in the UK to provide electricity to a facility.

During the winter months, the demand is even greater as lighting is turned on earlier, along with heating and other modern comforts. The UK’s grid operator, National Grid ESO charges the suppliers of commercial and industrial electricity users a premium charge for using electricity at Peak Time, often up to a thousand times the normal electricity tariff rate. Your supplier passes that charge on to you in your electricity bill.

In addition, you will also be paying towards the operation and maintenance of the UK’s medium and low voltage Distribution Network in your electricity bill. Time-based charges of up to 50 times your electricity tariff are applied every day and are also based on your facility’s electricity consumption. OakTree Power proactively manages your facility’s Peak Time electricity consumption to reduce these charges as much as possible, reducing and shifting electricity use across a range of electrical plant and devices. The level of reduction will vary as it is affected by the weather, time of day, season of the year and availability and degree of use of electrical plant in your facility.

By shifting load away from the Peak Time period, OakTree Power targets reducing these two non-commodity costs at once (distribution and higher tariff energy costs) to ensure that you obtain both cost reduction benefits at the same time.

Discover how OakTree Power’s solutions can silently control the flexible load in your facility and start your organisation accessing major benefits.