Demand Response

Demand Response has to be connected with indoor comfort, energy efficiency and technical condition!

Demand Response (DR, also known as Virtual Powerplant) provides an opportunity for electricity consumers to have a role in the operation of the electric grid by reducing or increasing their electricity usage during peak periods and earn extra money from this.

R8 Digital Operator takes electricity peaks into consideration and thus minimizes the electricity consumption during the periods of the highest electricity prices. Also important – we work with peaks that are known for a reasonable time before. This way we can still offer energy efficiency and indoor climate comfort and thus support you in achieving ESG goals as well!

R8 Demand Response is the most advanced DR service as it does not require any additional hardware installations or investments and is connected to the HVAC control by R8 Digital Operator!

How DR works?

Electricity provider sends a request to DR service provider to reduce (or increase) electricity consumption for x MW (usually 1 MW is the minimum) at a certain time. For motivation they offer, let’s say 3 times more money* than the regular electricity price. DR service provider with a big buildings’ portfolio decides where to “collect” this requested x MW to reduce and pays for this to the buildings’ owners.

Unlike some other DR service providers, R8tech has a very strong understanding that DR cannot be offered without the control over buildings’ HVAC system (indoor climate and energy efficiency) management, especially in buildings with high occupancy rates where indoor climate is the priority number 1.

Why?

Firstly, hectic decrease or increase of electricity usage breaks the efficiency in providing the required indoor climate and energy efficiency. Sure, there is some inertia in every building but still, to achieve the efficient energy consumption level again, it would take more electricity than without a DR. As a result, the total energy consumption will increase because of DR. CO2 emission – in most of cases the same (increasing) but in some cases it can be reduced still (i.e. no need to turn on an oil-fuelled electricity station for the higher peak and so the higher consumption of wind-electricity at a later stage brings still a lower CO2 balance).

Secondly, indoor climate comfort is the most crucial KPI in most of buildings, not too easy to achieve at all (in most of cases there is even no tool to measure it. But R8tech has!). DR degrades indoor climate without controlling it. In some cases, fluctuations in indoor climate to some extent are not too important (a la warehouses, cold stores, industry) but offices, hotels, malls – buildings with many people – need excellent indoor climate for health and wellbeing.

P.S. According to R8tech experience, financial profitability from energy savings is much higher than the potential revenue for DR. Still, DR in combination with energy & indoor climate management can give some additional financial value. We are ready to provide it.

*Financial profitability of the DR depends on every market regulation. In some countries there are clear financial benefits for DR, in some countries no.

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Interested in additional information?

Klaus Ek, CCO, R8 Technologies
Klaus Ek CCO
Interested in Demand Response?
Please contact me!

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