DONG Energy Sets Up Renewable Balancing Reserve Service
DONG Energy has launched Renewable Balancing Reserve service to help balance its own generation at times when the wind doesn’t blow.
DONG Energy’s service works by offsetting drops in wind strength with its business customers’ demand. Large business customers will be invited to either turn down consumption or increase on-site generation production when the wind blows more or less than forecast, helping to keep the system balanced and reducing the need to call on conventional or more expensive generation sources to make up the gap. It gives customers the opportunity to reduce intermittency in grid supply and also creates a new revenue stream by sharing the cost savings that result, the company said.
By reducing exposure on the wholesale market for imbalance, DONG Energy said it is able to share savings with customers and is creating an innovative way to operate a 100% renewable portfolio year-round.
Jeff Whittingham, Managing Director of DONG Energy Sales UK comments: “DONG Energy is investing in the development of new commercial solutions to balance an intermittent generation portfolio, whilst helping businesses to use their flexibility to create value. Renewable Balancing Reserve is different, provides businesses with an alternative way to reduce costs and create new revenue, without the risk of penalties or restrictive schedules.”
Renewable Balancing Reserve requires no commitment, with business customers able to choose whether to participate at each occurrence. There are no financial penalties involved for failure to respond, and it is not restricted to winter peak period, since the Renewable Balancing Reserve runs throughout the year, DONG Energy said.