Generating a passive income from balancing services

The country’s electricity networks come under stress at times for a variety of reasons but most often due to the variability in the weather causing the output from wind turbines and solar panels to go up and down. The UK’s electricity system is very sensitive to imbalances in supply and demand and if it varies too much, the electricity system has to be shut down, resulting in blackouts.

If you use an Aggregator such as OakTree Power to adjust your facility’s electricity consumption a small amount for a short period of time when these fluctuations occur, you receive a payment from the grid operators. Your ability to offer this adjustment when called on is termed Demand Side Response (DSR) and the degree of adjustment to your facility’s electricity consumption is called its Flexible Load.

There are actually a range of different balancing programmes which grid operators use depending on such things as speed of response, duration, price, location, time of day and season.