Hundreds of homes and businesses in Cornwall have started selling electricity to their local energy network, as well as their national energy systems, in a pioneering move.
The trial is the first time that traditional energy users (such as homes, hotels and businesses) have acted as a supplier in a microcosm of a full energy system. It has harnessed together 100 Cornish homes, fitted them with both batteries and solar panels, so that they act as a mini virtual power plant, used for the local energy network, Western Power Distribution, as well as for the UK's energy system operator, National Grid.
During sunny weather, when homes generate more than enough electricity from solar panels, they can store the power for later use, or use it to supply the energy system with clean extra power.
The homes took part in the trial, along with 150 other businesses. These companies were prepared to adjust how much energy they used depending on the balance of energy supply and the demand on the grid. As an example, if the wind and solar power output dropped, then the companies could choose instead to use less electricity, in exchange for a payment from the National Grid.
Alternatively, if the local grid had more electricity than it needed, then the companies could ramp up their energy demand. Already, National Grid offers to pay firms that own utility-style batteries for them to provide a similar service, however, this trial is the first time that companies can take part in the same "local energy market" as the network operator.
The market was designed by the energy company, Centrica, and was modelled on the same system that is used to balance energy markets all throughout Europe. The energy companies believe that the trial could help to create a nationwide chain of flexible smart grids that are built around clean energy first and foremost.
Pieter-Jan Mermans, a director at Centrica Business Solutions, has described the trial as "a milestone moment for the energy network", following years of research.
He said "improving grid flexibility benefits everyone from generators to consumers, and these trials represent a major step forward. We are hugely grateful to the householders and businesses across Cornwall, who have embraced this trial with open arms".
One of the local businesses, The Cornish Ice Company, is using its industrial freezers to act as a battery for the grid. They can easily cut electricity to them for a short while before temperature is effected, this means that it can offer spare electricity to either the local grid, or the national system operator.
A senior manager at National Grid, Colm Murphy said "exploring the provision of flexibility through a local energy market is a first for us".
"The potential is really exciting as we look to unlock more flexible energy resources in the market, and greater cost benefits to consumers".
