Frequently asked questions

The basics
  1. What is Flexitricity?
  2. How does it work?
  3. What’s in it for me?
  4. Will it disrupt my core business?
  5. How often is the service used?
  6. What will it cost?
  7. How can running standby generators be good for the environment?
  8. What’s the catch?
  9. Does Flexitricity generate, supply or trade electricity?
  10. What is an “Energy Partner”?
  11. Why is Flexitricity needed?
  12. What do my site operators have to do?
Standby diesel generators
  1. What happens if there is a power cut?
  2. Will there be a break in supply when the generators start?
  3. How can a generator be used by the site and by Flexitricity at the same time?
  4. I can’t afford to increase the risk of power failures. How is this avoided?
  5. What are G59, G75 and G83?
  6. Does my generator need to synchronise with the mains?
  7. Are my standby diesel generators reliable?
  8. What about local pollution?
  9. Will Flexitricity take over maintenance, operation or ownership of my generators?
  10. Who pays for fuel and maintenance?
Load management
  1. What is load management?
  2. Is load management another type of energy efficiency?
  3. What if I don’t want to give Flexitricity control of my process?
  4. What do “firm” and “non-firm” mean?
  5. How can you offer load management without disrupting core business?
CHP (Cogeneration) and small hydro
  1. What is “thermal inertia”?
  2. What are CHP, CCHP, cogeneration and trigeneration?
  3. My CHP generator has to follow heat demand. How can it be flexible?
  4. What types of hydro generator are suitable for Flexitricity operation?
  5. My economic model relies on ROCs, LECs and CHPQA. Does this affect flexibility?
  6. Can I turn my hydro site into a pumped storage generator?
Balancing electricity supply and demand
  1. Who or what is National Grid?
  2. Can you store electricity?
  3. How are electricity supply and demand kept in balance now?
  4. Aren’t industrial and commercial sites too small to make any difference?
  5. What are triads, and what is triad management?
  6. What is Short Term Operating Reserve (STOR)?
Environment
  1. How can diesel generators be “greener” than large power stations?
  2. What emissions are associated with “reserve” capacity?
  3. Can I claim carbon credits for Flexitricity operation?
  4. Can Flexitricity reduce the amount of carbon offsets I buy?
  5. What about the fuel I use in my standby generators?
  6. Can I use biodiesel or other biofuels in my standby generators?
  7. Don’t small generators just displace efficient, base load power stations?
  8. Why do we need Flexitricity if renewable and nuclear generators are the future?
  9. Do wind turbines do any good?
Economics
  1. Why does National Grid pay so much for Flexitricity’s services?
  2. How much will my site earn?
  3. How reliable is the income?
  4. What capital investment is required?
  5. Does Flexitricity charge for its equipment?
  6. What are Flexitricity’s management fees?
  7. Can I sell the electricity that is generated?
  8. What happens if my operating costs rise?
The basics

What is Flexitricity?

Flexitricity is a Scottish company which partners with businesses throughout the UK to provide a low carbon source of reserve electricity to the National Grid.

The word “Flexitricity” means “Flexible Electricity”.  We look for flexibility in electricity consumption and generation, and we create revenue for energy users and generators using the flexibility we find.

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How does it work?

Flexitricity communicates directly with standby generators and/or electricity consuming equipment on our partners’ sites via secure internet connections, aggregating them into a ‘virtual power station’.  This enables National Grid to start standby generators and turn down electricity consumption, at short notice and for short periods, right across the UK.  This is used to keep the national electricity supply stable in times of system stress.

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What’s in it for me?

  • New revenue from existing assets: National Grid pays us to keep this virtual power station available, and makes further payments when it is used. We share these payments with our Energy Partners, who own the assets we use. This turns assets which had previously been cost items into direct revenue earners.
  • Improved asset reliability: Standby generators need to be run regularly on load to ensure that they provide reliable emergency power.  Generators which are only tested off-load have a much higher likelihood of failure in service.  All assets connected to Flexitricity are continuously monitored, and we can inform you immediately of any concerns.
  • Helping to reduce CO2 in the electricity industry: Flexitricity is a low-carbon source of reserve electricity for the national electricity system. Every megawatt of capacity connected to Flexitricity’s virtual power station is a megawatt that does not have to be made available elsewhere. This reduces the need to keep coal and oil stations on hot standby or running inefficiently at part load, and makes it easier and more economical for the system to absorb the natural variations in renewable generation.

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Will it disrupt my core business?

No.  We understand that your equipment is there for your core business and this takes priority in all situations.  Each site has an “inhibit” switch, allowing your site operators to opt out of Flexitricity should the need arise.  Our equipment will automatically opt out if any process parameters stray beyond agreed limits.

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How often is the service used?

Utilisation hours are deliberately kept low.  For standby generators, the target utilisation hours are selected to minimise the impact on maintenance costs.

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What will it cost?

Flexitricity works with the assets that you already own.  Some work will always be required to connect our communications equipment to your controls.  For standby generators, there may also be a capital cost to allow the generator to run in parallel with the local distribution network.  We prefer to support your contractors, and will help you evaluate the return on investment.

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How can running standby generators be good for the environment?

In two ways.  First, no CO2 is released in keeping a standby diesel in reserve; the same is not true of large power stations.  Second, Flexitricity runs generators only when the oldest and most polluting power stations would otherwise be needed.  See our notes on environmental impact for more.

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What’s the catch?

There is no catch.  We don’t use penalty clauses. Instead, strong relationships and proven technology are our guarantee of performance.

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Does Flexitricity generate, supply or trade electricity?

No.  We don't buy electricity from you or sell it to you, and we do not trade electricity in the markets.

Flexitricity runs a “virtual power station” composed of industrial and commercial electricity users and generators, and we use it to reduce stress and pollution in the national electricity system.

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What is an “Energy Partner”?

An Energy Partner is a company or organisation which partners with Flexitricity to:

  • Connect some of its equipment to the Flexitricity virtual power station, and
  • Allow Flexitricity to reduce its electricity consumption, or run its generators, for short periods when the national electricity system is under stress.

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Why is Flexitricity needed?

It isn’t practical for National Grid or Electricity Suppliers to directly access the generation or flexible consumption capabilities of most industrial or commercial sites.  Flexitricity’s virtual power station concept aggregates typical sites into larger units which are directly useful in balancing electricity supply and demand.

Our Energy Partners are all organisations with critical core businesses to run; their staff are simply not available to run part of a power station.  The Flexitricity approach removes operational burdens while leaving ultimate control in the site’s hands.

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What do my site operators have to do?

Because Flexitricity is fully automated on most sites, your operators do not need to have any routine involvement in Flexitricity operation.  We won’t ask your team to operate a virtual power station on top of everything else they have to do.

If you prefer, you may choose to route Flexitricity calls through your control desk, giving your operators direct involvement in the process.

Either way, your staff will be able to inhibit Flexitricity operation at any time at the turn of a switch.  This gives your team the ability to opt out should they have any concerns about the plant.

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Standby diesel generators

What happens if there is a power cut?

Your contractors will connect your assets to Flexitricity ensuring that site power supply security has top priority at all times.

Most of the time, your generator will be stopped and in AMF (Auto Mains Failure) mode.  If the mains supply fails, the generator will start and supply power to the site.

If the mains fails while the generator is running, the mains circuit breaker will open and the load of the site will be carried by the generator without interruption.

The detailed implementation of this is site-specific.  Load sharing, load acceptance and site load profile must all be properly balanced and considered alongside G59/G75 protection requirements.

Flexitricity running should significantly reduce the risk that a standby generator fails to deliver during a power cut.  See our notes on generator reliability for more.

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Will there be a break in supply when the generators start?

No.  See synchronisation for standby generator starting and stopping options.  “Break” transfer is normally only considered on sites with full UPS coverage.

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How can a generator be used by the site and by Flexitricity at the same time?

When the site needs the generator, Flexitricity backs off.  Your staff also have the ability to lock out Flexitricity in the event of concerns.  However, for the vast majority of the time, generators are idle and can be providing a lucrative and environmentally positive service to the national electricity system.

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I can’t afford to increase the risk of power failures. How is this avoided?

None of our Energy Partners can afford power failures, and some would suffer very high impacts even from short duration interruptions.  The following steps will reduce the risk of generators failing to deliver in an emergency:

  • Commit to regular maintenance and testing, undertaken by a good quality contractor.
  • Operate generators regularly on load, exercise all circuit breakers, and turn over fuel stocks.  Flexitricity operation achieves all of these.
  • Carefully consider the matching of site load to available generation.

Please see our notes on generator reliability for more.

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What are G59, G75 and G83?

Engineering Recommendation G59/1 of the Energy Networks Association sets out the requirements for safely operating generators of capacity between 5kW and 5MW in parallel with the electricity distribution networks.  G59 protection will:

  • Prevent your generator from feeding into faults in the distribution network;
  • Disconnect your generator from the network if the mains fails;
  • Prevent your generator from keeping parts of the distribution network energised in a network fault.

Although G59 protection is relatively simple, different Distribution Network Operators implement it in very different ways.

The G75 standard is very similar to G59, but applies to embedded generators larger than 5MW.  The G83 standard is rather different and applies to microgenerators (which generate less than 16A per phase at 230V).

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Does my generator need to synchronise with the mains?

There are three options for running generators with Flexitricity:

  1. Full parallel running – generators start, synchronise with the mains, and ramp up to a fixed output power.  The mains remains connected while the generators are running.  The local Distribution Network Operator (DNO) must give permission for this type of operation.  It provides the maximum flexibility for Flexitricity operation, testing and maintenance, and generates the maximum revenue for you.
  2. Short term parallel (STP) running – this mode is also known as “soft load transfer” or “bumpless transfer”.  Generators start and synchronise with the mains, then ramp up power until the generator output equals the site load.  The mains circuit breaker is then opened, and the site runs as an “island”.  Stopping generators is the reverse process.  The local Distribution Network Operator (DNO) must give permission for this type of operation.  The DNO’s requirements may be simpler than for full parallel operation, but this mode does not exploit the full value of the generator and isn’t suitable for all sites.
  3. Changeover or “break transfer” – site load is transferred to generator power with a break in the mains supply.  This mode is only suitable for Flexitricity operation if the full site load is supported by a high integrity Uninterruptible Power Supply system.

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Are my standby diesel generators reliable?

If you run a purely reactive maintenance regime, or if you only test generators off-load or with load banks, then no, your generators are not reliable.  In fact, hidden failures are encountered on even the very best sites.  Typical problems include:

  • Failed starter or breaker tripping batteries, or failed battery chargers;
  • Corroded or seized contacts, relays and circuit breakers;
  • Blocked fuel filters, fuel line or tank corrosion, contaminated fuel, inoperative fuel level gauges and fuel theft;
  • Oil leaks, failed oil pumps or fuel-contaminated oil (which can result from off-load testing);
  • Failed engine block and alternator heaters;
  • Cooling water leaks and radiator fouling;
  • Coking, “slobber” and bore damage from off-load running;
  • Incomplete commissioning or acceptance testing, resulting in illogical and ineffective operating sequences;
  • Undocumented modifications, or changes elsewhere on the site which compromise generator operation;
  • Obsolete control equipment, often containing limited-life components, which cannot be quickly replaced in the event of failure.

The process of converting your generators for Flexitricity operation will flush out and remove the majority of these problems.  The risk of a subsequent failure remaining undetected until a mains failure occurs is greatly reduced.  Any threat to the generator’s ability to support the site (such as warning signals or low fuel levels) can be remotely detected and reported by Flexitricity.

Approximately two-thirds of in-service failures are removed by the type of running which Flexitricity operation involves.

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What about local pollution?

The main types of local pollution from standby diesel generators are:

  • Noise – modern acoustic enclosures have largely eliminated this problem.  Any remaining noise concerns at specific sites should be addressed early in the process.
  • Smoke and particulates – off-load testing should be eliminated as it creates stack emissions which are significantly worse than the type of on-load running which Flexitricity requires.
  • NOx and SOx – gasoil (“red diesel”) is now low sulphur.  Both NOx and SOx can be minimised on many engines using minor engine adjustments.  Manufacturers’ recommendations should be sought.

The amount of annual running is similar to a best-practice test regime, so net local emissions should be no higher as a result of Flexitricity operation.  Using standby generators for Flexitricity operation is a significant reducer of national CO2 emissions, which are global rather than local in effect.

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Will Flexitricity take over maintenance, operation or ownership of my generators?

No.  We do not supply, install, modify, upgrade, maintain or own generators.  Your standby generators remain your assets under your control.

If you have a strong, ongoing relationship with high quality contractors in generator maintenance, controls and systems integration, we will be delighted to work with them.  If you are in the market for these services, you may wish to contact some of the companies mentioned in our case studies.  However, we regularly engage with new contractors and always have several projects ongoing, so this list is not exhaustive.

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Who pays for fuel and maintenance?

You will continue to purchase the fuel and hire maintenance contractors.  Your generators remain under your control.  These costs are factored into our economic analysis, and the result is a substantial profit for you.

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Load management

What is load management?

“Load management” means reducing electricity consumption for short periods when the national electricity system is under stress.

To earn maximum revenue, load management needs to be triggered by National Grid or by the Electricity Supplier who sells the electricity used by the site.  This is what Flexitricity makes possible, by aggregating load management opportunities into a “virtual power station”.

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Is load management another type of energy efficiency?

No; load management is complementary to energy efficiency.

Energy efficiency reduces the total energy consumption of the site, and brings down the total bill.  Load management takes the electricity consumption that can’t be reduced, and dynamically moves it away from the highest stress and highest pollution time periods. 

The gross energy consumption of the site probably won’t be reduced by load management, but emissions and costs in the national system certainly will be.

Load management is a “de-stressing” service which creates incremental revenue for industrial and commercial energy consumers.

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What if I don’t want to give Flexitricity control of my process?

You retain control of your process at all times.  Flexitricity provides automatic and manual “opt-out” mechanisms, and will not issue a load management call if it would get in the way of your core business.

Flexitricity operation is best when it is fully automated, but other options may be appropriate for certain sites.

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What do “firm” and “non-firm” mean?

“Firm” load management means equipment which reliably consumes a certain amount of electricity, and can reliably be interrupted when required.  Flexitricity can create new revenue streams for firm load management capacity very easily.

“Non-firm” load management means equipment which can’t always be interrupted, either because it isn’t always consuming electricity, or because sometimes it absolutely must run in order to protect the core business activity of the site. 

In the past, non-firm load management couldn’t participate in helping the national electricity system.  Flexitricity has a unique approach which enables non-firm load management to earn revenue without changing the way the site operates.

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How can you offer load management without disrupting core business?

Flexitricity’s award-winning and patented “Demand Buyback System” (DBS) protects core business by monitoring, forecasting and automatically opting out of load management when necessary.

We monitor key process parameters continuously and work entirely within limits which you specify.  Only genuinely flexible loads are ever included in a load management call.

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CHP (Cogeneration) and small hydro

What is “thermal inertia”?

Thermal inertia means storage of heat or “coolth”.

For example, air conditioning keeps air temperatures down to a comfortable level.  If air conditioning is interrupted, it takes time for the temperature to drift close to an unacceptable level.  The time taken depends on outside temperature, occupancy, solar gain, equipment within the cooled space, and the volume of the space.  Load management of air conditioning must be limited by the ability of the thermal inertia to keep the space within acceptable limits during any interruption of electricity consumption, however brief.

Cooling water has thermal inertia of its own, but it only contributes to the total thermal inertia if water and air circulation continues when chillers are off.  This creates a choice maximising the duration of load management (by keeping the water circulating) or maximising the load reduced (by switching off pumps and fans along with chillers).

Additional thermal inertia can be created using stratified tanks, especially when used with Combined Heat and Power generators. 

Ice has additional thermal inertia in the form of latent heat.  Other such "phase change" materials are sometimes used in dedicated coolth stores.

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What are CHP, CCHP, cogeneration and trigeneration?

CHP stands for Combined Heat and Power, and is also known as cogeneration.

Power generators (engines, gas turbines, steam turbines and fuel cells) which consume fossil or biomass fuels produce waste heat alongside electricity.  CHP power stations capture most of that waste heat and use it to heat buildings or industrial processes. 

CCHP stands for Combined Cooling, Heat and Power, and is also known as trigeneration.  In CCHP, some or all of the heat captured is converted into cooling using absorption or adsorption chillers.

CHP and CCHP are often the environmentally optimal way to use any given fuel.  Flexitricity already works with CHP generators, allowing them to fully satisfy their heat customers while also exploiting the value in residual flexibility.

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My CHP generator has to follow heat demand. How can it be flexible?

It depends on the installation, and on the season.  Factors that affect flexibility include heat storage, thermal inertia in heat distribution systems, the number and type of prime movers, and the type of flexibility being exploited. 

For example, some sites are able to raise output above normal for up to two hours at a time; these sites may be suitable for providing Short Term Operating Reserve.  Other sites must generate at flat output for a certain number of hours each day (which may vary seasonally) but could in theory adjust the running hours to get the best price.  These sites work best in collaboration between the site, Flexitricity and the Electricity Supplier purchasing the generated energy.

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What types of hydro generator are suitable for Flexitricity operation?

You need a reservoir, and some means of measuring or calculating the water level in the reservoir.  The bigger the reservoir compared to the catchment’s size and runoff characteristics, and turbine output, the more revenue you can generate from flexible operation.  It must also be possible to install a phone line or pick up a mobile phone signal at the location from which the turbine is controlled.

The ability of your site to generate flexibly will vary with the seasons and the weather.  Flexitricity can help you appraise the suitability of your hydro site for different types of flexible operation.  The proposed operating regime should be checked against your SEPA or EA permits.

A good size for flexible operation is 250kW.  Smaller generators may also be suitable depending on the site.

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My economic model relies on ROCs, LECs and CHPQA. Does this affect flexibility?

At all times, it is essential that CHP generators take every opportunity to generate heat and cooling in the lowest carbon way, and maintain their “good quality CHP” status.  In short, this means always supplying heat and cooling from the CHP whenever possible, and operating the generators at high efficiency.

Hydro generators derive a large fraction of their revenue from Renewable Obligation Certificates.  This means that they must take every possible advantage of the available water, minimising loss through reservoir spill and evaporation.

Flexitricity works within these constraints.  The principles are very similar to those applied to load management.  See our notes on firm and non-firm capacity and preventing process disruption for more.

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Can I turn my hydro site into a pumped storage generator?

You will lose ROCs if you do.  Pump suction needs to be submerged, or you need a priming mechanism.  But if you don’t need ROCs and you’re not afraid of an engineering challenge, Flexitricity would love to hear from you.

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Balancing electricity supply and demand

Who or what is National Grid?

National Grid is a public limited company with operations in the UK and overseas.

National Grid has two major UK electricity businesses, both of which are monopolies regulated by the Office of the Gas and Electricity Markets (OFGEM).  These are:

GB Transmission System Operator (TSO)

National Grid is responsible for maintaining the balance of supply and demand in the national GB electricity system.  Flexitricity sells services such as Short Term Operating Reserve (STOR) to National Grid to help with this process, and provides revenue from STOR to the industrial and commercial electricity users and generators who participate.

Transmission System Owner, England and Wales

National Grid owns the electricity transmission infrastructure in England and Wales.  The transmission network in Scotland is owned by Scottish Power, and Scottish and Southern Energy.  The three transmission system owners are funded through triad charges.  Flexitricity operates triad management for industrial and commercial electricity users and generators.

The term “the national grid” is also often used to refer to all of the assets of the whole of the electricity system, including power stations, transmission and distribution.  In the UK, only transmission assets are actually owned by National Grid.

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Can you store electricity?

No.  Electricity cannot be stored any more than light can be stored.  It is generated in the same instant that it is used.  This means that balancing supply and demand is the critical process in any electrical system.

You can store what electricity does: pumped water, finished or intermediate product, fuel, heat, “coolth”, hydrogen and many of the other inputs and outputs of electricity consuming or generating equipment.  New energy storage technologies are also emerging.

Flexitricity exploits these different types of flexibility or “inertia” to help balance electricity systems in a low carbon way.

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How are electricity supply and demand kept in balance now?

In every electricity network, a “Transmission System Operator” (TSO) takes charge of this process, using different tools for different timescales.  There are three categories: response, reserve and contingency reserve.

  • Frequency response (seconds): the supply frequency tells you whether the electricity system is balanced or not.  If frequency is low, demand has exceeded supply.  If frequency is high, supply has exceeded demand.  Frequency response happens automatically, and can only hold the system stable for a few minutes if a large power station fails.  Two examples of frequency response are:
    • Governors on large thermal power stations open and close the steam or fuel valves as frequency rises and falls.  In order to do this, the power stations have to be running at part load.
    • If frequency falls too low, some large electricity consumers allow their processes to automatically trip.
  • Reserve (minutes): the TSO can instruct fast-acting generators to start or increase output when demand goes higher than forecast, or to make up for lost generation after frequency response runs out.  Reserve calls last until either the demand peak is over or slower power stations are ready to take over. The main type of reserve, by capacity, is Short Term Operating Reserve, or STOR.
  • Contingency Reserve (hours): the TSO can warm up large power stations and hold them in “hot standby” if there otherwise wouldn’t be enough STOR on the system.  This is very carbon intensive.

In longer timescales, balancing supply and demand is largely left to the free market.

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Aren’t industrial and commercial sites too small to make any difference?

On their own, they are too small.  Flexitricity aggregates them into a “virtual power station” which is large enough to make a real difference.

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What are triads, and what is triad management?

Download our triad information sheet from our resources page.

Triad management means reducing your electricity bill, or increasing your generation income, by changing the way you operate during winter peaks.  Flexitricity can help you gain maximum value from triad management.If you already practice triad management, you have already proven your capability to provide more lucrative electricity balancing services such as STOR.

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What is Short Term Operating Reserve (STOR)?

STOR is the most important category of fast-acting generation or demand-reduction capacity which National Grid always holds ready to keep the electricity system stable.

Flexitricity provides STOR by starting standby generators, reducing electricity consumption, and turning up CHP and hydro generators, on instruction from National Grid.

The generators and energy consumers are all owned by our “Energy Partners”, who earn revenue by allowing their equipment to be used in this way.

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Environment

How can diesel generators be “greener” than large power stations?

Flexitricity is called only when the national electricity system is under stress, when National Grid would otherwise call on the oldest and most polluting power stations. All of these emit more CO2 for the same generation than diesel engines.

Many older power stations require up to twelve hours’ notice before they can generate; in contrast, standby generators can reach full power in under a minute. No CO2 is released in keeping a standby diesel in reserve.

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What emissions are associated with “reserve” capacity?

Reserve generation capacity, used for balancing electricity supply and demand, produces between 300 and 750 tonnes of CO2 per annum for each megawatt of reserve required.

By working with Flexitricity, your sites will prevent these balancing emissions, whether you use generation or load reduction.

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Can I claim carbon credits for Flexitricity operation?

Not yet.  CO2 emissions from electricity generation varies continuously throughout the day, but for now DEFRA uses an annual average to calculate the carbon impact of electricity consumption. 

The emissions saved by Flexitricity are actually saved at large power stations, and double counting of carbon credits must be avoided.  However, the cost of the CO2 and fuel saved in large power stations is one of the factors that drives the value of flexible operation, and is included in the revenue you receive for working with Flexitricity.

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Can Flexitricity reduce the amount of carbon offsets I buy?

If you purchase carbon offsets to meet a Corporate Social Responsibility (CSR) objective, Flexitricity operation can reduce the cost of this.  However, the effect of Flexitricity operation must be calculated without double counting, and in an externally verifiable manner.  We would be delighted to work with those who report on and audit your CSR compliance, to ensure that only those carbon savings which can be robustly verified are included.

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What about the fuel I use in my standby generators?

Fuel consumed by standby diesel generators creates CO2 emissions at your site, and these are less than the corresponding emissions which would have occurred if National Grid had been forced to buy the reserve electricity elsewhere. 

The target annual run hours for Flexitricity operation are similar to those of a best-practice generator test programme.

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Can I use biodiesel or other biofuels in my standby generators?

In theory, yes.  Some factors to consider include:

  • Where would the biofuel you purchase create the biggest carbon and cost benefit: in your standby generators, your CHP generators or your vehicle fleet?
  • Can you use your chosen biofuel without trace heating in fuel lines or storage tanks?  If not, it may not be best suited to generators which run for limited hours each year.  
  • Is the sustainability of your chosen biofuel verifiable?  If not, you may be forced to switch back to fossil diesel in the future.

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Don’t small generators just displace efficient, base load power stations?

This isn’t generally true, and in fact the opposite is true of generators working with Flexitricity.  By giving National Grid the ability to choose when generators run, and by careful pricing, we ensure that your generators will displace the most polluting electricity – which would be National Grid’s next best option when the electricity system runs short.

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Why do we need Flexitricity if renewable and nuclear generators are the future?

Electricity from wind, wave, solar and tidal power stations is generated when the resource is available, not when consumers need electricity.  By allowing the electricity system to adjust both consumption and generation, Flexitricity makes it possible for a much larger volume of variable renewable generation to be absorbed.

Nuclear power stations can be designed to be moderately flexible, but for a number of technical and economic reasons, it is much better to operate them as “base load” stations.  Furthermore, nuclear generators are large, and getting larger.  A big generator needs a lot of reserve in place just in case it trips.

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Do wind turbines do any good?

Yes. 

Wind turbines are fuel savers.  They don’t generate continuously, but when they run, they directly reduce the fossil fuel burnt at large power stations.  You can see this live using the links in our resources pages. 

Wind turbines are already having a significant effect on carbon dioxide emissions worldwide. Wind turbines don’t remove the need to have generation capacity ready, and for this reason they are not entirely carbon-free.  This is why Flexitricity is developing reserve capacity that doesn’t produce CO2 when it is waiting to be needed. 

To access some of the detailed investigations on the emissions costs associated with wind, visit our resources pages.

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Economics

Why does National Grid pay so much for Flexitricity’s services?

National Grid has to keep the electricity system safe and stable at all times.  If National Grid were to rely wholly on the short term energy markets, the cost of system balancing would be very much higher, and there would be no guarantee that the capacity would be available when required.

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How much will my site earn?

Earnings from Flexitricity are many times greater than the operational costs.  Sites vary, so before you commit to anything, you will see an economic and technical appraisal tailored to your particular sites.

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How reliable is the income?

Some of the income is reliable, and some depends on how much you run:

  • Availability – this is a rent for the capacity which you make available.  This income is not dependent on the amount of running (or “utilisation”) you experience, and should be as reliable as your generator (or your electricity consuming equipment).
  • Utilisation – payments are made whenever you generate electricity or reduce your consumption in response to a call.  The more you are used, the more you will earn.
  • Triad management – see our triad information sheet on our resources page.  Savings or revenue from triad management can’t be guaranteed, but around 1,200MW of electricity consumers consider it reliable enough to build into operational practice.

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What capital investment is required?

Depending on your site, the following may be required:

  • Controls interfacing and modifications to PLC code;
  • For some generators, installation of synchronisation and G59 protection equipment;
  • Where controls are obsolete, replacements may be required.

It is very common to discover faults on standby generators, and these must be rectified before the site commences Flexitricity operation.  Most of the capital investment is either beneficial to, or vital for, the security of the power supply to your site.

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Does Flexitricity charge for its equipment?

No.  The only equipment we supply is an outstation, which we continue to own and maintain, and a telephone line, which we pay for.

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What are Flexitricity’s management fees?

Zero.  Our revenue is a percentage of payments received from National Grid.  Our philosophy is “win as a team, lose as a team”.  We have never lost.

Flexitricity charges a survey fee for site appraisal.  This is refunded if the site goes live within a reasonable timescale.  The first site survey is free.

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Can I sell the electricity that is generated?

You still own the electricity that you generate.  Electricity that you use on site reduces your site import, and any exported electricity can be sold.  Neither National Grid nor Flexitricity will register your meter or become your electricity supplier.

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What happens if my operating costs rise?

The market price for STOR has consistently been substantially higher than the cost of operating a standby diesel generator, even without considering the regular income which is paid regardless of how much you run.  Regular tender rounds ensure that changes in market conditions can be incorporated into future prices.

The value of triad management is dependent on the location of your site.  If you are in Scotland, high fuel prices make triad management using diesels less attractive.  However, if your site is in England or Wales, triad management can be very lucrative. Other flexible services can be dynamically priced to reflect the cost of provision, and guarantee that you are only called if there is profit in it for you.

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