ASHDEN CASE STUDY / OPEN ENERGI, UK

2016 Impax Ashden Award for Energy Winner case study Innovation Open Energi, UK Award supported by

382 sites using Dynamic Demand

38,700 tonnes of CO2e saved per year

60 MW flexible electricity demand Bolton Waste Water Treatment Plant, where Staff at National Grid keep a constant watch on Dynamic Demand is installed UK electricity supply and demand. known as Firm Frequency Response “Open Energi has developed a truly innovative technology to (FFR), and Open Energi shares the provide a frequency response service, which is essential for income with its clients. the integration of more renewable energy into the grid.” Open Energi is currently the only Ashden judging panel demand-side business that has successfully developed the technical capability to operate in National Keeping the national grid stable “The best thing about being an Open Energi Grid’s Dynamic FFR market, where Electricity supply must equal demand customer is that you really feel like you’re helping solve the bigger problem of energy responses to changes in grid frequency on a second-by-second basis; any demand. By controlling consumption instead must be made automatically within significant difference will result in of generation, you open the door for more two seconds. Because Dynamic the frequency of the grid’s alternating renewable energy generation. You become an enabler of a more sustainable future.” Demand can respond so quickly, it current rising or falling, potentially Andy Pennick, Energy Manager, United Utilities is able to substitute for the spinning leading to power failures at a regional generators in fossil fuel power stations, or national scale. The physical mass Dynamic Demand enabling reductions in CO2 emissions of spinning generators in large power Open Energi was founded in 1999, and removing a barrier to increased stations provides stability for the grid, and announced its first commercial renewable energy generation. but renewable energy generation does Dynamic Demand customer in not normally do this. A lack of stability When the service was launched, the 2011. Dynamic Demand is aimed at can be compensated for by running first customers were understandably commercial and industrial client sites fossil fuel power stations below full wary about handing over partial control with energy-intensive processes that power, so they can quickly increase of their electrical equipment to a third are not time-sensitive, such as heating, output to balance rises in demand party, but Open Energi worked closely cooling or water pumping. It monitors or respond to unexpected generator with them to assess their equipment the grid frequency and asks the outages. But this reduces efficiency, and demonstrate that their operations client’s equipment to reduce demand increases CO2 emissions and limits the would be unaffected. It now has many if the grid frequency is too low, and maximum amount of renewable energy well known clients, including United increase demand if it is too high. The that can be connected to the grid, Utilities, Sainsbury’s and Aggregate overall energy use remains the same; because the power stations providing Industries, and has a total of 60 MW of it is simply used at a different time. this service cannot be turned off. electrical demand signed up. National Grid pays for this service,

[email protected] Mark Gilburt, Head of Sales and Marketing www.ashden.org/winners/OpenEnergi16 [email protected] Document last updated May 2016 www.openenergi.com ASHDEN CASE STUDY / OPEN ENERGI, UK

What types of demand are flexible? National grid stability The first step for Open Energi when working with a new client is to identify which The UK electricity grid operates at a electrical equipment can be regarded as providing flexible demand. This requires a frequency of 50 Hz, meaning current full understanding of the client’s processes and obligations. For example, freezers flows first one way, and then the other, will have a maximum temperature that they must stay below, but no minimum 50 times per second. National Grid is temperature, while a waste water treatment plant has to maintain a minimum responsible for managing the frequency, and is required by law to oxygen content in the waste water at some stages of the treatment. keep it between 49.5 Hz and 50.5 Hz The next step is to rule out any equipment that must run at specific times, must run under normal conditions. If the continuously or does not use enough electricity for a Dynamic Demand installation frequency moves much beyond these to be economically viable. Processes that usually have sufficient flexibility and limits, or changes rapidly, some demand include air conditioning, space heating, industrial heating, commercial generators will automatically refrigeration, ventilation, water pumping and waste water treatment. disconnect from the grid for safety reasons. The end result can be How Dynamic Demand works unexpected power cuts – this Each installation is customised for the client, and is integrated into their control happened on 27 May 2008, when systems, so that it can take account of parameters that dictate whether the Longannet coal-fired power station equipment can be turned up or down at any particular point in time. Specialist and Sizewell B nuclear power station contractors are used for electrical and software work to ensure smooth both shut down unexpectedly within a operation, and a period of testing is carried out after installation to ensure the few minutes of each other. The grid client is convinced that their business processes will not be adversely affected. frequency dropped below 48.8 Hz, and The client also has a ‘cut-off switch’, to temporarily disable the system if about half a million customers lost power for up to an hour, causing required for operational reasons. significant inconvenience and Dynamic Demand is fully automatic, requiring no intervention from the client. economic impacts. It monitors the national grid frequency, turning equipment down when the frequency drops below 50 Hz, and turning it up when it is above 50 Hz. The Impact of frequency response exact point at which equipment is turned up or down is controlled by Open Frequency response and demand Energi remotely and varies from site to site, to provide a smooth response as response services do not generate energy, the frequency moves progressively away from 50 Hz. they change the timing of when electricity is used. Unlike renewable energy Open Energi works with clients to set limits on the operation of Dynamic generation, it is not the amount of energy Demand, such as the maximum duration of a frequency response event, the time-shifted that counts, it is theavailable minimum time between events, and taking account of existing strategies to capacity, as it is this that increases the minimise costs, such as switching equipment off entirely during peak hours in stability of the grid. When frequency the early evening. In practice, the electrical demand which can be turned up or response capacity is higher, the capacity of fossil fuel plants required to be kept down is less than the total demand signed up, due to clients’ restrictions and running below full power is lower, saving also because equipment that is already off can’t be turned down, and vice versa. CO2 and making more room on the grid for Achievements renewable energy generation. Open Energi has signed up 41 clients with 382 sites and 60 MW of flexible demand, enabling it to typically turn up by 12 MW and turn down by 5 MW – the exact capacity available varies over time. By reducing the need for fossil fuel power stations to run below full power, Open Energi is building a ‘virtual power plant’ and cutting CO2 emissions by an estimated 38,700 tonnes/year at the time of writing.

Future plans Open Energi has 56 employees, had revenue of £596,000 in 2014-15, and is on course to double this in 2015-16. Its goal is to continue increasing the electrical demand it is managing, by adding new clients and installing at more sites with existing clients. For example, after piloting Dynamic Demand at three sites, United Utilities has rolled the system out to ten further sites and has dozens more planned. In the longer term, Open Energi expects to work with energy storage providers, and Dynamic Demand tracks a sudden change in the those using batteries may even be able to provide frequency response in under one national grid frequency (top), and delivers a reduction followed by an increase in demand second – a market National Grid is currently developing. (bottom) to help keep the grid stable.

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