Demand Response & Flexibility - ENGIE - Building low-carbon energy systems of tomorrow

Use energy in a smart and sustainable way

Flexibility sits at the heart of a resilient and sustainable grid and thanks to the advanced flexibility programs in the UK, almost every generator or load bearing asset can participate and save money.

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What is demand side management?

Demand side management, also known as demand side response, is where businesses adjust energy usage during peak times or when renewable supply is high, contributing to grid stability and earning revenue.

If businesses agree to shift their electricity use in response to a price or grid signal, it offers the system additional flexibility and helps keep Britain’s electricity system in balance. Flexibility is vital for integrating intermittent renewable generation assets and is a great way to save money and reduce carbon emissions.

Flexibility Service Providers and Aggregators like us pool assets to provide essential grid services. We help businesses maximise value by contributing to grid stability and earning revenue through energy optimisation programmes, while supporting decarbonisation.

NESO’s last response service to prevent blackouts

Capacity Market Services

Introduced in 2014, this service requires your asset to respond within 4 hours of an Capacity Market notice.

The program is technology agnostic and open to all assets subject to a “de-rating” and comprehensive testing/certification.

This is an availability payment-based service that can be dispatched when required by NESO, however, it has never been called since its establishment in 2014.

Post-fault grid security services

Reserve Services

Typically, there are two reserve services, a fast and slow program. They are in place to give NESO time to find alternate forms of generation in response to a grid event and they can involve an increase or a decrease in generation.

Depending on the program, the response time required ranges from 1 – 20 minutes. This service is more regularly dispatched but is still infrequent, especially in the case of the slower reserve services.

This service offers both availability and utilisation payments and can be dispatched when required by NESO. Payment is based on performance of utilisation, as well as the available capacity to grid.

NESO’s real time response programs

Frequency and dynamic services

There are a range of frequency and dynamic products, with minimum response times ranging from 0.5 and 30 seconds. Depending on the specific program, both positive and negative responses can be required.

These programs are called on more frequently when alternative generation/demand sources aren’t available within short time frames.

These services produce the most revenue per MW, due to the complex and strict requirements needed to respond to a signal within such a short time frame.

Like NESO, Distribution Network Operators have flexibility programs

DNO and local flexibility

Sometimes there are scenarios where the national transmission system is balanced but due to limited interconnection between local grids and national systems, the local distribution network is imbalanced.

This means some zones that can’t export any additional generation may have turn demand up, vice versa for zones that can only import so much.

This also provides additional value, as it limits the risk to expensive transmission/interconnecting equipment that could be at risk of overload.

Merit based margin tool used to balance the grid

Demand Flexibility Service

Re-introduced in November 2024, this service has changed from a winter auxiliary service, to a merit based balancing tool that competes with the balancing mechanism

This is an intra-day service with requirements being published in the morning, competition taking place within an hour, and dispatch later the same day.

This is a fantastic alternative to those who cannot participate in the balancing mechanism due to the short notice requirement

Used for real time balancing response

Balancing Mechanism

Introduced in March 2001, this is NESO’s main tool to ensure overall grid balance and no zonal (TSO) constraint.

Balancing mechanism auctions open 90 minutes before a settlement period, and close in just 30 minutes. The format is bid offer acceptance.

This service is incredibly valuable however, offers more punitive measures for non performance. We typically enter our more reliable assets into this mechanism.

P415 allows us to participate in the wholesale market on behalf of our assets

The wholesale market

An established trader, ENGIE began participating in the wholesale market on behalf of its assets in November 2024.

Like the balancing mechanism, this is a high-risk market so we will typically only introduce our more reliable assets and use our wider portfolio to eliminate risk.

We can also stack this market with a wide range of our programs, to generate revenue across all of these services.

Maximising value for your business

ENGIE provides expertise, tools, and strategies to turn energy flexibility into financial and environmental benefits

Flexibility to support the UK grid. By working with system operators, ENGIE ensures your business helps maintain a stable and efficient grid.

React to market signals. ENGIE tailors solutions to maximise opportunities from price fluctuations and renewable generation surpluses.

Best value. With advanced analytics and custom strategies, ENGIE enables you to access untapped potential in energy markets.

Benefits of demand response with ENGIE

Advanced analytics

Real-time insights to help optimise energy use and minimise costs.

Revenue opportunities

Earn from grid-balancing programs like the Capacity Market and Frequency Response.

Support sustainability goals

Align energy use with your carbon reduction commitments, supporting renewable integration.

Frequently asked questions

What is demand-side management?

Demand-side management involves adjusting energy use during peak times or when renewable generation is high to benefit both the grid and your bottom line.

How does demand response bring value to my business?

By taking advantage of your flexibility, ENGIE helps you capitalise on market opportunities, reduce costs and earn revenue through participation in grid-balancing services.

What types of technology does ENGIE use?

ENGIE employs AI-driven platforms, real-time data analytics and cutting-edge optimisation tools for unparalleled energy management.

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