To satisfy daily electrical demand, the electricity grid previously relied entirely on huge power plants. However, technological developments have enabled the energy system to rely on a far larger spectrum of generating, consumption, and storage assets, resulting in a smarter grid that can be dynamically modified to meet demand throughout the day.
Power generation has the potential to transform the availability of sites and power producing assets into a lucrative income stream, fostering sustainable growth and enhancing business agility.
What is Power Generation?
This is when power generation equipment is utilized to supply electricity to the network during moments of high demand. You are then paid through the system operator reimbursing you for that electricity.
You won’t have to pay anything to have the generators installed, and the contract will cover all maintenance and operation costs as well. In order to ensure you get the most profit out of the process, we can also combine the various components of your project.
If you have energy production resources on site, such as combined heat and power (CHP) plants or battery storage, you could earn valuable extra income for your business by optimizing those assets in different ways.
How can power generation benefit your business?
- Earn money by assisting the grid during peak hours.
- Fast start-up for entry into response time-based markets
- Reducing your total energy costs and the payback time on your investment
- Earn an income from the excess electricity you generate
- 1-50MW capacity through multiple engines offer flexibility and scalability
- Single point of supply with end-to-end service – just add fuel
- Best value, most efficient engines on the market
Is Power Generation right for my business?
Businesses with vacant land and those with unused power-generating equipment are the two categories of companies that can profit from power generation.
Vacant Land
If your site is available and is 50m2 or larger, you could use that land to generate revenue for your business. For the land to export electricity to the grid, it only has to be adjacent to a grid link.
Unused Assets
If your company has power generating assets that aren’t used then these can also be used to make money.
We may take care of any necessary asset renovations before managing the whole operation, upkeep, and optimization of a power generating plan on your behalf.
Why is Power Generation important?
To reach the goals for combating climate change, the final coal-fired station in the UK will be shut down in 2025. The grid becomes unstable when there are fewer large, centrally located power plants like this, and the expansion of intermittent, more broadly dispersed renewable power adds to this effect.
The knock-on effect of this is a need for more flexible generation, which can be met through both management of supply or doing your own power generation with Energy Solutions.
Power Purchase Agreements (PPAs)
PPAs are long-term agreements for renewable energy. They are becoming more and more well-liked by large corporations, SMEs, and local governments. Why? They help with the energy transition by providing a dependable means of decarbonizing power use.
Advantages
A Power Purchase Agreement offers long-term price stability, the ability to finance investments in new power generation capacity, and the reduction of risks associated with electricity sales and purchases.
The contract’s open-ended design also allows for a great deal of flexibility in reflecting the preferences of individual plant operators and electricity consumers. This also applies to pricing: PPAs can be signed with fixed prices or with the ability to participate in market risks and opportunities.
Disadvantages
PPAs are complex contracts that frequently require extensive discussion and negotiation before being agreed upon. If price developments turn out to be unfavorable for one party, PPAs’ long duration may be a disadvantage. The actual production of electricity itself can fluctuate, particularly when it comes from photovoltaic and wind energy.
There are many different questions and queries you may have when considering the best PPA.
To read more about PPA’s & how they fit your business, visit:
Why choose Energy Solutions?
Since Energy Solutions has served as the go-to broker for so many businesses for more than 20 years, we are experienced in navigating the energy markets in a volatile environment.
Energy Solutions provides substantial gas, electricity and water savings for commercial clients including SMEs, large enterprises and national corporations. Organizations we’ve worked with include world-recognized brands such as The Football Association, Stringfellows, Harvey Nash, Pitney Bowes, JP Morgan to name but a few.
Using our knowledge of the wholesale markets, we can help you choose the right options for your business, at all times.
Our specialists can answer any questions about delivering Power Generation here.
Or alternatively:
Email us: nick@energybrokers.co.uk
Call us: 0131 610 1688
WhatsApp: 07757 400 788