A Demand Side Unit (DSU) combines a number of distributed large electricity consumers that have agreed to reduce their demand by a certain quantity on instruction to form a Virtual Powerplant.
The required demand reduction can be achieved by shedding onsite load or by supplying electricity using onsite generation.
Like a traditional power plant, while on standby, an DSU qualifies for capacity payments that reward the provision of capacity to the electricity system by being available to operate. The value of available capacity on the electricity system varies both seasonally and based on time of day depending on how closely the system is operating to its maximum availability. As such, the rates of capacity payments vary to reflect this on a half-hourly basis and are lowest during Summer/night and highest during Winter/peak-time.
How SmartPower can help
Typically signals to reduce demand happen twice per year with usually a maximum of 2 hours per event. A notice period of 30 minutes is provided. Capacity payments are priced in € per MW per hour and are of the order of €40,000 per MW (paid monthly).
SmartPower provides a DSU service works in the following way;
- SmartPower will assess your site and meter data for suitability and cost benefit.
- SmartPower can then install the necessary meters/other interfaces & manage the DSU through the SmartPower energy management system.
- Because the DSU Supplier does not own the metering and interface equipment, the client together with SmartPower is in a very strong position to negotiate the best rates and go with the supplier who offers the best economic advantage.
- Your load profile submission is actively managed on a half hourly basis by SmartPower to maximise payments.
- The income is split so that the client receives 85% of the payments with 15% going to SmartPower as a service fee.
- No capital investment or upfront costs are required from the client.