Renewable energy specialist Drax is one of the first providers of a new service aimed at incentivising businesses to reduce their electricity demand at peak times to support energy security.

Adam Hall, director of energy services, Drax

The Demand Flexibility Service (DFS) is targeted at businesses with assets where demand can be flexed, including electric vehicle charge points as well as batteries and manufacturing processes.

National Grid Electricity System Operator (ESO) is running the DFS to financially incentivise businesses to reduce electricity consumption when national demand is at its highest, typically on weekdays between 4pm and 7pm. Between November 2022 and March 2023, the ESO has announced that it will operate a maximum of 12 tests for participants.

The scheme was recently approved by Ofgem, and Drax Energy Solutions is one of the first approved providers this winter.

Drax has worked with a number of customers, including Ford and SME FI Real Estate Management, to reduce their collective power demand by 287MWh during these test periods – the equivalent amount of electricity needed to power 574,000 UK homes.

This additional flexibility helps National Grid ESO balance supply and demand amid the ongoing energy crisis caused by Russia’s invasion of Ukraine.

With Drax’s customers paid £3,000 per MWh to reduce their power consumption, the reduction in demand has also generated revenue of over £875,000 for those participating.

Adam Hall, Drax’s director of energy services, said: “Drax Energy Solutions is one of the first approved providers of this service. Our business customers with flexibility in their operations can play a significant role in boosting Britain’s energy security whilst cutting their own electricity bills.

“Customers including Ford and FI Real Estate Management have agreed to be part of the scheme, adjusting their manufacturing processes and EV charging. This will deliver more flexibility and stability to the grid, by cutting their energy use at key times, which in turn contributes to their own net zero goals.”