National Grid’s ‘power balancing’ schemes offer data centres significant recurring revenues – without causing disruption to business continuity

National Grid is fundamentally changing the way it manages and balances energy consumption. Its goal is to give our power infrastructure more ‘flexibility’; particularly as more renewable energy sources come on line. The result is that energy-intensive businesses such as data centres are being asked to play a much more active role in managing how much power they use and when they use it. This is in return for an additional, long-term income stream.

 

To support the decarbonisation of the UK and to help boost uptake in its broad suite of ‘power balancing’ schemes, National Grid is offering those that participate in its initiatives the potential to earn extra income by adjusting power consumption in real-time. As a result, it is able reduce its requirement for coal and gas-fired reserves to be ready to supply power at short notice.

 

Significant recurring revenues

 

For those thinking there must be a catch, there isn’t. The returns for participation are genuine and offer data centre owners and operators the chance to accrue significant financial rewards.

 

In the UK, very significant sums of recurring revenues are currently achievable for every megawatt (MW) of average onsite energy consumption turn down or turn up of generation from a DRUPS (diesel rotary uninterruptible power supply).

 

No disruption to service continuity

 

For sites interested in participation in National Grid’s schemes, there may be concern that involvement will have an adverse impact on critical power continuity. However, the reality offers a very different story.

 

In the first instance, the requirement is for ‘turn-down’ not ‘turn-off’ and load is immediately shifted to battery back-up and diesel generator sets when an ‘event’ occurs. At sites where DRUPS is available, data centre operators will not see any tangible difference in their plant or operations during a power balancing ‘events’.

 

Secondly, the sums stated are in return for around 10 (on average) ‘turn-down’ events per year, lasting for a maximum of just 30 minutes each. In total, this adds up to - on average - around 5 hours a year. All of this will be welcome news in a sector that is defined and judged by service up-time and continuity of data accessibility.

 

Critical power readiness

 

Real-time status readiness / health checks on the back-up generator sets – an aspect of day-to-day life for data centre operators – is also typically provided by the aggregator. This kind of centrally managed testing and real-time information on critical generators adds significant value at the operations level.

 

Risk of system downtime is managed with greater confidence thanks to live load testing and an automatic capture of the generator test data. This includes monitoring of performance parameters, battery levels and fuel supplies; all of which is essential to the delivery of a reliable power supply when an ‘event’ occurs.

 

 

Optimising returns

 

Of course, each data centre will have its own set of assets and requirements, and so understanding and selecting the right DSR scheme is essential. Here, partner companies known as aggregators  - such as Endeco Technologies - are required to help make the right choices and optimise returns.

 

At a technology level, the selected aggregator’s role is critical. They take care of the necessary hardware and software installation, as well as the online monitoring and reaction systems, and the day-to-day running of the system. In short, the aggregator’s job is to provide the critical elements that enable participating companies to implement the right strategies to optimise and maximise returns.

 

 

Future-proofed & system ready

 

Deciding on which aggregator to partner with should be a carefully considered decision for data centre operators. Consideration should be given to select an aggregator that offers a platform that is both innovative and future-proofed. This will give participating companies the confidence that they are ‘technology-ready’ to access more financially attractive tariffs as and when they come on line.

 

Ultimately, DSR schemes represent a no-risk route to generous additional income for those willing to help the UK better manage its challenging electricity requirements.