Gateshead Council signs £1m demand response contract with Flexitricity

Gateshead council will earn £1m through demand-side response
Gateshead energy centre: £1m revenue for council through grid balancing

Demand-side response aggregator Flexitricity has added another significant site to its books. The firm says Gateshead Energy Company, operator of a 4MW combined heat and power scheme currently being commissioned, will earn £1m from grid balancing services over a 15 year contract. The energy company is owned by the local council.

Leader of the council, Martin Gannon, said: “Once we realised that we could bring more revenue into the project by providing capacity to the National Grid – without changing our day-to-day operations – the decision was made for us.

“It’s win-win for ourselves and our customers. Not only does it support our business model of providing low cost, low carbon energy to homes, organisations and businesses, but Flexitricity’s system works seamlessly with our own, meaning we can provide heat and power to our customers while supporting critical national infrastructure.”

Flexitricity is owned by Swiss energy company Alpiq. The aggregator manages in excess of 300MW of demand-side response and was awarded contracts for some 370MW of DSR in last month’s capacity auction.

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