Honeywell and demand response aggregator Pearlstone Energy have announced plans to build a 200MW demand response portfolio within five years. The aggregator will deploy Honeywell’s automation software to offer a revenue stream to commercial and industrial firms via National Grid’s Short Term Operating Reserve (STOR) programme.
The STOR programme pays companies to shift load at periods of high demand on the national power system. Companies that take part in the programme get paid for agreeing to make their power consumption flexible and get paid again if they actually have to shift consumption when called upon by National Grid, in this case, via the aggregator.
They have to respond within four hours of instruction if contracted to do so under the STOR programme. Other demand-side response programmes pay much more per megawatt hour but require faster response times.
National Grid lists 18 such demand-side aggregators, which mitigate the risk of companies not shifting demand by building portfolios of participants. The minimum STOR portfolio size is 3MW.
Pearlstone claims it will have a 3MW portfolio by early 2016. It is currently touting for new customers in order to get there.
The company said it also intends to sell the aggregated customer energy load saved by the program on the wholesale energy markets at profitable trading times to drive additional potential revenue for participants.