Shifting consumption from expensive to cheap hours
The gap between the cheapest and the most expensive hour of the day is rarely small — see
the spread in the table above. On an hourly settled contract you pay the price that applies
in the hour the power is used. And a large share of an ordinary home's consumption genuinely
does not care when it happens.
The physics is what makes it possible
Flexible consumption is consumption that can be moved in time without compromising what the
device is there for. Three examples from ordinary Danish homes:
- Water heater and heating element. A tank of hot water does not care
whether it was heated at 3 in the morning or at 5 in the afternoon. The water is equally
hot when you shower.
- Heat pump. The house itself is a large thermal store — walls, floors and
furniture hold the heat long after a short pause. Heating can therefore be shifted without
a noticeable change in temperature.
- Home battery. It can charge when power is cheap and cover the household's
consumption when it is expensive. A battery has no comfort task to protect.
Two things have to be in place before it pays: an hourly settled contract,
so your price follows the market, and control that does it automatically.
Nobody wants to look up spot prices every evening — and good flexibility should not be
noticeable. The water stays hot and the house keeps the temperature you chose. NM1 is working on
exactly that kind of price-based control — it is coming soon.
The same devices can earn on top of that
Shifting consumption by spot price is a saving on your own bill. But the same
devices can do more: Energinet pays to have fast flexibility available so the grid frequency
can be held at 50 Hz. That is an income rather than a saving, and the two do not
exclude each other.
NM1 aggregates household devices into one virtual power plant and sells the combined
flexibility as FCR-D to Energinet in daily auctions. The revenue is shared with the household — see what your device can earn under calculate your earnings. See how it works, or read the background in our
guide to ancillary services.