Unlock value with demand side response energy management

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Did you know that cost savings and sustainability initiatives often go hand-in-hand? Below, JLL’s Usama Sapru explores the benefits that demand side response energy management can bring to your business – impacting both the bottom line and helping you to achieve your sustainability objectives in the process.

It’s no secret that today’s building owners, occupiers and managers are under pressure to keep operating costs low – but they’re also tasked with achieving increasingly aggressive sustainability objectives.

The good news? Striking a balance between the bottom line and social responsibility is possible – and in some cases, even profitable. When it comes to energy management, adopting a Demand Side Response (DSR) policy provides one such opportunity.

What is Demand Side Response?Demand side response energy management

In the UK, the Department of Energy and Climate Change (DECC) estimates that electricity demand in the region will double by 2050. At the same time, there is a growing need to source cleaner electricity – especially given that conventional power stations are highly polluting and expensive to run (yet still required to meet peak demand and avoid blackouts).

Consequently, the National Grid System (NGS) is continuously changing the electricity supply to balance consumer demand and total generation requirements.

To alleviate the pressure on the NGS, consumers can change the amount of electricity they take from the grid at particular times in accordance with market pricing structure. This practice of regulating demand to match supply is called Demand Side Response.

How can a DSR approach benefit my organization’s bottom line?

By reducing energy consumption at peak times, organizations have the opportunity to sell this unused capacity back to the electrical grid at market prices– creating an opportunity to not only achieve cost savings, but to also generate revenue. This opens the door for assets to earn a fixed sum for each kilowatt (unit of power) of electricity that is regulated.

What other benefits can a DSR policy bring to my business?

In addition to offering a new asset revenue stream, leveraging DSR delivers the following benefits:

  • Reduced operating costs, driven by greater energy efficiency
  • Reduced CO2 emissions
  • Greater resilience for emergency contingency planning
  • Free up capital to invest in energy efficiency initiatives
  • Enhanced “green” credentials and improved brand image

Interested in learning more about how your business can take advantage of DSR? Check back for next week’s post for strategies that your organization can use to capitalize on your DSR approach.

For more sustainability thought leadership from JLL, follow JLL Sustainability on LinkedIn.

Usama Sapru is an Energy Consultant with JLL’s Upstream Sustainability Services team. The multi-disciplinary Upstream team helps you to define your sustainability vision and implement your strategy, through transparent sustainability reporting, stakeholder consultation, and assurance. To learn more about the value that the Upstream team can bring to your business,click here.

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