Discover how cold storage, logistics and warehouse companies can save on power costs with a demand response energy strategy from Flow Power.
Industrial refrigerators can maintain temperatures for hours while switched off. This makes cold storage and refrigerated warehouse businesses ideal candidates to reduce costs and open up new revenue streams by taking advantage of demand response.Demand response rewards businesses for reducing or changing their power demands in response to a specific trigger, like energy price spikes.
If you’re thinking about doing demand response or not sure how it works, read on.
It’s easier than it sounds
It’s natural to think your business operations aren’t flexible, especially if you have productivity-based or product-based KPIs to meet. While demand response requires some flexibility around operations, it’s often easier to implement than it sounds.
You might not need to power down in full to do demand response. It can be as straightforward as temporarily or partially reducing your operations during periods of high pricing, which often only last a few hours and occur only over a few days.
The refrigerators responsible for the majority of cold storage and warehousing businesses’ energy costs can also help them tap into the savings available. Some large refrigerators can maintain a freezing temperature for hours due to thermal mass, which allows cold storage businesses to do demand response with little to no impact to stored goods.
Do you know the real price of power?
If you’ve looked for alternatives to standard fixed-rate energy contracts, you might have come across the wholesale energy market.
The wholesale energy market is dynamic. Prices change throughout the day, month and year and can be much lower than standard fixed-rates.
While you don’t need to buy wholesale power to do demand response, the benefits are greater if you do. That’s because businesses that buy wholesale can avoid paying peak prices by maximising operations during low price periods and scale back operations when prices are higher.
For example, you could choose to schedule daily operations like pre-cooling refrigerators when prices are low and powering down during daily peaks, like between 4-7pm.
Responding means rewards
Demand response plays an important role in our energy system. It helps to balance the supply and demand equation to keep prices down and lights on.
To help businesses like cold stores and warehouses make a better business case for demand response, there are programs in place to incentivise you to reduce energy use when demand is high.
Some of these programs are state-based or national, like the Australian Energy Market Operator’s Reliability and Emergency Reserve Trader (RERT), which calls on businesses that can provide reserve energy on short and medium notice by powering down in return for financial rewards.
If you’re based in South Australia, you might also be eligible for Flow Power’s Building Intelligent Demand Response program, which is part of the South Australian Government’s Demand Management Trials Program. This program provides funding to manufacturers to cover set up costs and control systems to automate demand response processes.
To find out more about wholesale energy and how your business could benefit from demand response, visit the Flow Power website.