FAQ - UK Capacity Market

Fast Facts

Program Period: Annual (1 Oct. – 30 Sept.)
Program Hours: 24 hours per day
Dispatch Notification: Approximately 4 hours
Dispatch Duration: Up to 4 hours

What is demand side response?

Demand Side Response (DSR) is a term used to describe how electricity users can temporarily reduce their consumption in response to requests from National Grid. Organisations can earn revenue for their participation.

What is the Capacity Market?

The Capacity Market is designed to ensure that there is adequate capacity within the electricity system to meet demand throughout the year. Providers of capacity, including generation assets and demand-side resources, are paid for their annual commitment to produce electricity or reduce consumption as required. If National Grid forecasts a potential shortfall of electricity supply relative to demand for a given period within a particular day, it will issue a warning to all capacity providers. The warning is issued to ensure that providers deliver on their commitment to the system and prevent a potential blackout during the given period. As such, Capacity Market warnings will only be issued in extreme circumstances.

Who can participate?

Participants should have at least 100kW of electricity demand that can be voluntarily curtailed on non-holiday, winter, weekday evenings. Though a typical dispatch is only expected to last for 30 minutes, participants should be able to reduce their load for up to four hours in accordance with the Capacity Market rules.

Who can participate?

EnerNOC makes participation easy. We take care of the complex details so you can stay focused on running your business:

  1. We work with your staff to create a bespoke energy reduction plan (ERP) that yields maximum value with minimal impact on your operations.
  2. We conduct a simulated DSR dispatch to ensure that you are comfortable with your energy reduction plan.
  3. When National Grid experiences emergency conditions, we notify you of when and for how long to reduce your consumption. If desired, EnerNOC can automate your load reduction.
  4. We handle all data processing and settlement with National Grid to ensure fast compensation.

How much revenue can I earn?

Earnings from the Capacity Market depend on how much capacity you commit to reduce and the payment rate, which will be determined in annual capacity auctions conducted by National Grid.

How do I get paid?

Capacity Market participants will receive a payment from EnerNOC for being on standby during the warning period.

Does it cost anything to participate?

EnerNOC bears all direct costs for your participation in the Capacity Market.

What type of equipment is suitable for delivering energy reduction?

Any equipment that is normally consuming power which you can switch off or transfer to back-up generation for up to four hours is suitable. EnerNOC has extensive experience in identifying energy reduction opportunities in a wide range of sectors. Common examples include:

  • Modifying manufacturing processes
  • Reducing non-essential lighting
  • Dialing back production equipment
  • Changing settings in industrial freezers, heaters, and dryers

What can I expect during a dispatch?

When National Grid anticipates a supply shortfall, it will notify EnerNOC of a potential grid emergency. EnerNOC will notify its customers by phone, SMS, or email at approximately four hours in advance of the period of supply shortfall. These customers will begin to initiate their curtailment plans and the resulting energy load reduction will be made available to National Grid. Throughout the dispatch, EnerNOC support personnel help ensure that you achieve the highest level of performance and resulting payments.

What happens if I cannot meet my commitment?

EnerNOC shields customers from all penalties associated with underperformance. While failure to meet your commitment may result in reduced earnings, you will never be required to make any out-of-pocket payments.

What are the benefits?

When National Grid anticipates a supply shortfall, it will notify EnerNOC of a potential grid emergency. EnerNOC will notify its customers by phone, SMS, or email at approximately four hours in advance of the period of supply shortfall. These customers will begin to initiate their curtailment plans and the resulting energy load reduction will be made available to National Grid. Throughout the dispatch, EnerNOC support personnel help ensure that you achieve the highest level of performance and resulting payments.

  • Earn payments for participating
  • Reduce energy costs
  • Protect your operations and your community from potential blackouts

Can I view my performance?

Users of EnerNOC’s energy intelligence software (EIS) can view their DSR performance in real-time by logging into our web-based application.

EnerNOC’s EIS allows all parts of an organisation to create a holistic energy management strategy addressing the three cost drivers of energy (how you buy it, how much you use, and when you use it) without adding complexity. Plant managers and financial decisions makers alike use EIS to align around a common set of goals and KPIs, drive efficiencies and savings, and streamline operations.