Every energy user is different, and this method of demand response does not work for everyone.
We have an established business serving clients who have been operating in this way for more than 10 years (and gaining significant benefits in doing so). The nature of the benefits they are seeing is summarised here:
An energy user might see a 20% reduction in their annual cost of energy by just curtailing for 10-20 hours each year.
If that sounds worthwhile to you, and broadly achievable, then we can help you understand the specific details of your case.
Understanding the potential benefits
Through a review of your electricity consumption profile and historical pricing patterns, we’ll be able to help you understand how the benefits would look for you, in your particular case.
Understanding the potential risks
We don’t want to see Demand Response get a bad name from energy users having bad experiences – so we will be up-front with you if it won’t work for you for some reason.
By opening your business up to spot price exposure, you are also opening up your business to the risks that your energy provider would have otherwise covered (and then smeared into the average rates they charged you for your energy). It’s important to understand that there are risks that may come back to bite you if you don’t have the right processes in place.
We’ll work with you to understand your own particular constraints (whether they be technical, financial, or for other reasons).
Understanding how implementation would work
It is rare that an energy user will be able to take their entire load to spot, and manage the risk of this physically. It is more likely that there is some “balance of plant” load that cannot be curtailed. Hence, this portion should be financially hedged in some way – and there are various options available.
This consideration may vary with parameters such as the time of year, and the fullness of your order book.
Interested to have us help you?
If you are interested in having us help you define the business case for how this method of demand response would benefit your specific circumstances, please call us = on +61 (0)7 3368 4064.
Our analysis would deliver detailed insights on how your operations would change, with reference to the spot price and the benefits this would deliver. We’d also help you understand what you’d need to implement to make this happen.