Scheme pays users to help balance the electricity grid

We go to great lengths to make our power supply more efficient, whether that is a USB-C charger for a mobile phone, or a multi-megawatt power station. But the energy that is not used if often just as important. There are not many totally carbon-free types of generation, so the cleanest option is often to not generate if it can be avoided. This is especially true at peak times, when energy is normally drawn from more expensive and/or environmentally unfriendly sources. At no time has this been more important that at the present, when fuel prices are at their highest level ever, and the Russian war in Ukraine has strained supplies for much of Europe. The less energy that is used, the less gas and oil that has to be shipped from places like the Middle East.

At the same time, we are in the middle of a transition to renewable generation. As this type of energy generation is intermittent, a more traditional way of generation has to be there to back up the system and ensure there is electricity available for users, for example on days the wind is weak, or the weather is overcast. Less fuel usage means less need for back-up power.

As such, a lot of countries have tried to reduce their usage over the past winter and into the present. For example, the UK launched its Demand Flexibility Service (DFS) to allow the National Grid Electricity System Operator (ESO) additional flexibility when the national demand is at its highest. The service allows consumers, as well as some industrial and commercial users, to flex the time when they use their electricity.

Much of the DFS is accessed through providers. The latest of those to access the scheme is SolarEdge Technologies, who have launched a Battery Virtual Power Plant in collaboration with UK energy infrastructure company Smart Metering Systems Plc. (SMS-plc). The service is available to thousands of SolarEdge Home Battery owners across Great Britain with eligible smart meters. Customers can now earn financial incentives for using stored battery energy during DFS peak demand events to stabilize the grid. Battery owners with an eligible export meter can earn even higher financial incentives by exporting their excess battery energy back into the grid. SolarEdge’s technology will automatically optimize the battery charge and discharge during each demand event, maximizing homeowner benefits while helping to stabilize the grid.

Christelle Barnes, UK Country Manager at SolarEdge, added: “With the residential solar and storage market in Great Britain rapidly growing, we believe the DFS battery Virtual Power Plant can help further accelerate adoption by providing homeowners with an additional revenue generator. Homeowners can sit back and passively earn more income without having to even change their energy consumption. With electricity prices continuing to soar, the financial business case for solar and storage becomes even more attractive.”

Schemes like these will help the transition to renewables as it gives consumers a way to reclaim the outlay that they spent on technology for the home, just like grants done for domestic solar panels. The electricity grid will be under pressure for some time, and giving customers incentives to use less electricity, or make use of the batteries in their homes will ensure that the usage peaks are levelled out.