Electricity North West To Pay Businesses To Reduce Energy Use
Electricity North West (ENW) wants businesses in the Greater Manchester area to take part in a trial which will pay them to reduce their energy use.
The trial is the first of its kind in this country and has been organised by Electricity North West. The trial will involve paying businesses to cut their energy use when extra capacity is needed for the national grid.
The idea of the trial is to help manage the increase in electricity use because the Department of Energy & Climate Change predicts that electricity consumption will double by 2050. The trial therefore hopes to help manage electricity use by reducing demand at peak times.
It should also help businesses to reduce their business energy bills at a time when business electricity prices are increasing.
Trials will take place across Stockport and Bury over the next five years and if they prove successful then the scheme could be extended to other parts of the North West.
Customer strategy director for ENW, Paul Bircham said “As we move to a low carbon economy, people are likely to be using more and more electricity, using it to power their heating and cars, instead of gas and petrol”.
He added “But the local network that we own and maintain can only carry a certain amount. So the challenge for us, and our customers, is to find ways to cope with the increase in demand without just building more and more lines”.
Mr Bircham said it would cost customers a fortune to build new networks because they’d have to add the cost to electricity bills. He said “if we can reduce the demand during peak periods instead, then the costs will be hugely reduced”.
Working with EnerNOC, a leader in energy management, ENW will bring the technology needed to adjust demand for electricity. Those who use lots of electricity, such as big businesses, will be incentivised to join the scheme. Despite ENW asking these businesses to reduce their energy use at peak times there should be minimal disruption.
The president of EnerNOC, David Brewster, said “The United Kingdom is in the process of creating one of the world’s most advanced, low-carbon electricity grids. Electricity North West is participating actively in that transition by encouraging energy users to use electricity more strategically”. He added “Controlling energy demand will be an important part of ongoing energy market reforms in the UK, and Electricity North West is already ahead of the curve. We value their leadership in demand-side energy management and look forward to working together”.