Ørsted is a renewable energy company that takes tangible action to create a world that runs entirely on green energy. We are developing market leading green energy solutions that benefit the planet and our customers, further driving down the cost of green energy.
We are a leading energy supplier in the UK. By helping businesses be smarter with their energy consumption through innovative green energy solutions, we are striving to help build a sustainable energy future for the UK, which will last in the new energy economy of the future.
We have established our company as a global leader in offshore wind. We develop, construct and operate offshore wind farms in Europe, the US and Asia, and have built enough offshore wind to power 9.5 million people. The UK is our biggest offshore wind market with nine wind farms already operating. To date, we have invested £6 billion in the development of UK offshore wind farms and plan to double that by 2020.
P3P increases export revenue by an average of 4%, with Ørsted’s Renewable Balancing Reserve
P3P recognised that by accessing the imbalance market, further revenue could be made from the CHP plant, but needed a way to access this without additional resource or investment.
The solution – Renewable Balancing Reserve (RBR)
RBR provided a solution to P3P’s challenge, as it gave a new opportunity to access the imbalance market and create new revenue without commitment or risk. P3P recognised that by accessing the imbalance market, further revenue could be made from the CHP plant, but needed a way to access this without additional resource or investment.
Ørsted monitors system imbalance and alerts P3P when there is an opportunity to help balance the system. Responding to the alert, P3P then changes on-site generation by activating the CHP plant remotely at the times needed.
Risk and commitment-free participation
Although RBR is available 24/7/365, P3P can choose when to take part. If the company is unable to participate, it simply doesn’t respond to the alert, and there’s no penalty. This makes RBR entirely risk and commitment free, differentiating it from other National Grid balancing schemes.
Through RBR, P3P has earned additional revenue from the CHP plant, which is shown as an adjustment on its monthly invoice from Ørsted. Due to the tomato growers’ requirements for heat and CO2, on average P3P was available to take part for just over half of the 48 settlement periods in a day, over a year. During the times P3P was able to take part, it was able to increase export revenue by an average of 4%, creating an average of £273 of additional revenue per hour. With no additional impact to on-site operations or running costs, P3P has been able to access this revenue without extra investment.
National Grid manages the electricity network in real-time to keep it running efficiently and safely. This includes making sure that frequency and voltage are both within acceptable limits. Each day suppliers disclose their anticipated volume for the day ahead. Imbalance occurs when generation does not match the demand. When this happens, National Grid takes action to balance the network by asking generators and consumers to change generation or consumption to counteract the difference. This incurs costs, which are passed on to suppliers. Renewable Balancing Reserve helps businesses unlock the value from the imbalance market. It works by reducing imbalance costs for Ørsted as well as providing a revenue earning opportunity from the System imbalance price. The resulting savings/earnings are then shared with participating customers.