The Government Procurement Service (GPS) has signed up service providers to provide demand response services to central government and public sector facilities, including NHS trusts and hospitals, Ministry of Defence, Department for Transport, universities and local councils across the UK for the next four years.
The public sector and central government estate is vast and diverse, using an estimated 10 percent of total UK electricity demand. The framework will benefit public sector organisations who wish to optimise their assets by creating revenue from existing electricity generating or consuming equipment whilst also assisting the UK electricity network with its demand and sustainability targets.
Scott Buckleton, head of business development at GPS, said:
“As energy costs climb for everyone, not only will demand response programmes help curtail electricity usage, these programmes do it in a way that does not interfere with the critical infrastructure of our nation’s government sites and help maintain budgets for doing the real work of supporting the UK.”
One of the companies GPS has entered into framework agreements with is KiWi Power. As part of the contract, the smart grid and energy demand firm will expedite the demand response development process for participating facilities, which includes initial analysis and turndown assessment, smart meter installation, programme management, ongoing performance testing and energy optimisation. Ziko Abram, director and co-founder of KiWi Power, said:
“Not only will participants benefit from a new, recurring revenue stream for committing to reduce energy consumption when called to do so, but they will help alleviate supply constraints throughout the country, enhance transmission system reliability and generate a new source of funding for additional energy and site initiatives.”
Another company on the framework us Flexitricity. It explains the financial benefits of the scheme:
“National Grid and the distribution network operators (DNOs) remunerate Flexitricity to hold reserve. In addition, further payments are made when this reserve is accessed. Flexitricity shares these payments with participating energy partners which can reach £100,000 per annum on a medium sized site.”
Ron Ramage, Chief Executive Officer, Flexitricity, said:
“This Framework Agreement provides an excellent vehicle for public sector organisations’ across the country to access services appropriate to their operations and unlock revenue.”