Winter is here.
You can feel it. Mornings are far brisker, and the evenings are downright chilly. Summer clothes are packed away and all the warm winter woollies are out. We’re all ready for another cold UK winter.
While there is a certain romance attached to winter—hot chocolate by the fire, snowball fights—it does come with its fair share of challenges, especially for electricity networks and the stability and security of our national grid.
The grid—a balancing act.
For the grid to function optimally, there must be a consistent balance between the outflow and inflow of energy. If there is an imbalance, you risk the occurrence of temporary, widespread outages. Not pleasant for anyone involved.
Electricity networks in the UK try to avoid this at all costs. So, when the demand on the grid exceeds generation capacity or supply is low due to intermittent availability of renewables—the sun doesn’t always shine and the wind doesn’t always blow—electricity networks, more often than not, switch on gas thermal plants to ensure grid stability. Definitely not ideal either for the environment or anyone’s pocket.
It’s a costly exercise.
Renewable energy is very cost-effective because, after paying for the initial setup, the sun and wind are free. Gas, however, is not only a polluting fossil fuel but also a very expensive resource and, no surprise, electricity networks typically reflect these high costs in the prices charged to consumers.
Electricity prices for households are based on the wholesale price, which is set every half hour depending on the most expensive energy source at that time. Gas has traditionally been the most expensive and UK citizens are feeling the pinch.
Why heating your home or business just got costlier
Surging wholesale gas prices, driven by the war in Ukraine, are largely influenced by disruptions in global gas supplies, especially from Russia, which have affected the whole of Europe, including the UK. This, paired with a fire that damaged the electricity interconnector at Sellindge in Kent, has led to significant energy price increases, leaving millions across the UK struggling to heat and power their homes.
To understand why this is happening, it’s important to know that energy sources are ranked based on something called the “Merit Order”— a system used to determine the priority of different energy sources for electricity generation based on their cost. This is how the merit order works: Renewables are prioritised in the ranking because they carry zero fuel costs. Gas is a lot further down on the Merit Order. The UK’s growing dependence on this pricier, polluting energy resource has intensified, leading to the unprecedented price hikes we’re now seeing.
Why the UK market is ready for Voltalis
Already well established in France with over 200 000 homes and businesses connected to the Voltalis network, we have a proven record in managing demand on the grid.
With the UK in the grips of an energy crisis and the onset of winter, set to exacerbate the situation, demand response is the solution. And companies like Voltalis, are the enablers that can make it happen effectively at scale.
In addition to the above, there are additional reasons why the UK power market has become increasingly open to Voltalis.
Let’s unpack these reasons a little.
- The UK is in need of greater grid flexibility
There is a push to integrate more renewable energy resources into the grid. Because these are intermittent by nature, the grid needs more flexibility. This is where we step in and step up. We can manage demand-side response to ensure stable grid operation.
- Regulatory support
Regulatory support for companies like Voltalis has strengthened, with the UK government and Ofgem (Office of Gas and Electricity Markets) introducing initiatives like the Capacity Market and the Balancing Mechanism. These regulations allow us to compete on a level playing field with traditional energy networks, opening up more opportunities for us to help stabilise the grid.
- The UK government has an ambitious net-zero emissions target.
The UK aims to be net-zero by 2050. While that may seem a long way off, it’s just around the corner when you consider the changes that need to happen. Reaching this goal will rely heavily on companies like Voltalis, who play a vital role in balancing energy demand.
Demand Response the Voltalis way
While our approach builds on traditional demand response, what we offer goes a bit further. We call it Automatic Demand Response. By using smart technology, we tap into real-time pricing signals to maximise cost savings and deliver a smoother, more user-friendly experience for electricity users. Our system adapts in real-time with high efficiency, responding to grid conditions as they change, optimising resource use to boost grid stability.
It’s as simple as installing a switch onto your heating and cooling systems. When demand on the grid spikes or energy supply dips, the switch optimises the electricity consumption of your systems for a short period. These minor adjustments are imperceptible and won’t impact your comfort at all.
You may ask, “If they are so small, how do they help ease demand on the grid?” The answer is, there is power in numbers. The more households and businesses that adopt the Voltalis system, the greater the collective energy savings. If, for example, 250,000 premises are each saving a small amount of energy, those savings are substantial enough to make a real impact.
Another question, or perhaps rather a concern you may have is, “What happens if I am particularly chilly and don’t want the temperature on my heating system optimised today?” Don’t worry—we’ve got you covered. Our MyVoltalis App—a full home energy management system— lets you control, monitor and optimise your electricity consumption remotely. Or, if desired, you can switch the Voltalis functionality off completely.
An added perk of the Voltalis system is that you, as the end user, don’t pay a cent for the installation or the service, making it not just a fabulous non-intrusive way to help manage demand on the grid but free too. Which, of course, may raise even more questions. Yes, it is absolutely free. No, there is no catch. Why? Because Voltalis is already paid by the electricity networks for its contribution to stability and security of the grid.
Future thinking
This is not just a solution for now, for this winter. It is a long-term solution that addresses many of the UK’s energy challenges.
Our solution is simple yet highly effective, and we are ready to go right now. And, interestingly enough, while we are able to solve the UK’s broader energy issues, we are also uniquely positioned for the UK market in other ways. For instance, one in six homes in the UK were built in the 19th century. Updating these older homes to make them more energy efficient can be quite a task. But with Voltalis, it’s easy and hassle-free: no renovation required. All that’s needed is the installation of the Voltalis switch. An elegant solution indeed and all together better.
Whether you’re a home or business owner, whether you’re a landlord or social housing associations, contact us today to learn how Voltalis can help you contribute to the stability of the grid, save money and reduce the UK’s reliance on fossil fuels now and in the future.
