London, 29 September 2014 – Reactive Technologies has launched an ultra-responsive smarter demand-side management (DSM) service called Tradenergy® which it describes as one of the most significant innovations to the energy market in decades.
As ministers and the UK government deliberate on exactly how DSM should be offered as a cheaper and greener alternative to building new generating capacity, Reactive Technologies has created a way of offering help to the many thousands of commercial and industrial electricity customers who want to manage their energy consumption in a smarter, more flexible and profitable way.
Smarter DSM technology
By controlling high volumes of small assets found in many businesses, such as lighting, air conditioning, refrigeration and pumping equipment, the Tradenergy DSM service offers a highly sophisticated and scalable solution.
A patented, secure cloud-based platform allows Tradenergy to provide customers across numerous industry sectors, such as manufacturing, health, hospitality, office, education and utilities, with a far greater choice of recurring risk-free revenue streams, which, for operational or technical reasons, most DSM companies are unable to offer.
The service achieves this by avoiding the traditional approach taken by DSM aggregators, which often requires long-term, locked-in contracts and high CAPEX investment in new hardware.
Marc Borrett, CEO and co-founder of Reactive Technologies explained: “We recognise the energy industry is facing a flexibility challenge. Rather than building expensive new generation assets, we believe the only cost effective way of preventing the UK’s lights going off due to shrinking capacity margins is to focus on allowing end customers to be better prepared for the future by enabling flexibility of how and when energy is used. Not just when the grid operator calls for it during times of grid stress or peak demand for example, but at any time throughout the day.
“We’ve discovered a way to increase responsiveness and reduce operational impact by remotely optimising how and when individual electrical assets consume power. Our unique, secure and sustainable approach to energy management represents one of the most significant and exciting changes to the energy market for many years.”
Reactive Technologies partners with third-party energy consultants and controls manufacturers. By doing so it can ensure that its customers are provided with an unrivalled DSM service that offers flexibility, control and optimisation of unlimited numbers of existing energy consuming devices.
Next generation DSM
The traditional approach to demand-side response (DSR) in the UK is to wait for a request from the grid operator to turn down or turn off non-essential equipment during times of grid stress or peak demand. These ‘events’ happen sporadically and the revenue earned from existing aggregators participating in DSR programs like Short Term Operating Reserve (STOR) can be unpredictable.
Reactive Technologies’ Tradenergy service enables businesses to dynamically manage their energy demand patterns to suit their own business needs. By using software control to shift their energy demands, businesses can minimise their spend on electricity and benefit from other revenue sources.
Although relatively immature compared to the US, the UK’s DSM sector, along with investor confidence is growing fast. Annual spending within Europe alone on DSM services is predicted to grow from $139m in 2013 to $777m in 2020. (Navigant Research)
In March 2014, Reactive Technologies announced it had completed a B-series fundraising round for commercialising its innovative Tradenergy service, with lead investor RES Group.
Gordon MacDougall, managing director for RES in Western Europe, commented: “As a leading global renewable energy company we clearly recognise the potential DSM services can offer to help meet the challenges of expanding the low carbon economy now, and in years to come. Tradenergy represents a ground-breaking step towards the development and expansion of next generation DSM services. This technology is particularly essential in the UK, RES’s home market, where it can mitigate the growing concerns surrounding the predicted energy shortfall the UK could be facing as early as next winter.”
Eric Bloom, principal research analyst for Navigant Research commented: “We forecast that demand management services are poised to transform many energy markets as a solution to electric grid instability. Growing integration of intermittent renewable energy generation into the grid, and problems arising from ageing infrastructure, make a perfect niche for demand management programmes in almost every electricity market.
“Navigant estimates that demand response load curtailment will grow from 30.8 GW in 2014 to 196.7 GW in 2023.”
High-res images are available to download here.
About Reactive Technologies
Founded in 2010 by Dr Heikki Huomo and Marc Borrett, both technology veterans and entrepreneurs, Reactive Technologies Limited is a leading UK smart grid company focused on delivering innovative technology solutions in zero carbon demand-side management (DSM), network efficiency, reactive power management and the integration of renewable and intermittent generation into the grid.
Reactive Technologies’ expertise in mass communications brings a new approach to the challenges of managing electrical energy at scale without disrupting customer operations. Working with end customers and partner organisations, Reactive Technologies delivers an unrivalled, cloud-based DSM service (Tradenergy®) that enables flexibility and control in energy management and allows access to a broader range of demand management revenue streams.
About Tradenergy DSM service
Tradenergy redefines traditional demand-side management (DSM). The Tradenergy service combines powerful communications technology with innovative cloud-based software to remotely adjust the power usage of commercial and industrial customers’ electronic assets – from heating, ventilation and air conditioning units, to refrigeration and freezer systems.
Tradenergy provides an integrated and unrivalled DSM service that offers flexibility, control and optimisation of unlimited numbers of existing energy consuming devices. It allows customers to optimise energy consumption; reduce energy costs; and increase revenues by using electrical energy more efficiently – 24/7 and 365 days a year.