As electricity systems become increasingly dependent on renewable generation, the challenge is shifting from simply producing low carbon power to ensuring that supply and demand remain balanced at every moment. Drax believes this growing complexity is making optimisation an increasingly important part of the modern energy market, with greater emphasis on using existing assets more efficiently while maintaining reliability across the grid.
The company recently brought together Chief Executive Will Gardiner, Chief Commercial Officer Paul Sheffield and Flexitricity Chief Executive Andy Lowe for a discussion on the changing nature of electricity system management and the role optimisation is expected to play as renewable generation continues to expand.
The conversation focused on how the rapid growth of wind and solar power is changing the characteristics of electricity supply. Unlike conventional generation, renewable output is determined by weather conditions, creating greater variability throughout the day. At the same time, electricity demand is evolving as transport, heating and industry become increasingly electrified, making the balancing task more complex.
Rather than viewing these changes as a limitation of renewable energy, Drax argues that they highlight the need for more flexible and responsive systems capable of matching supply and demand in real time. Optimisation involves coordinating a broad range of energy assets, including generation, storage and flexible demand, allowing the electricity network to respond more efficiently as conditions change.
According to the discussion, optimisation is increasingly about extracting greater value from assets that are already connected to the grid. Instead of relying solely on building additional generating capacity, operators can improve performance by using advanced software, forecasting and automated decision making to determine when energy should be generated, stored or released.
The company also highlighted the growing importance of flexibility services in supporting system resilience. As renewable penetration rises, assets that can respond rapidly to changes in generation or demand become more valuable. Batteries, pumped storage, flexible generation and demand side response can all contribute to maintaining system stability, particularly during periods when renewable output changes unexpectedly.
Drax believes this approach can also help reduce costs by improving the overall efficiency of the electricity system. Better optimisation may reduce unnecessary constraints, minimise wasted renewable generation and make more effective use of available infrastructure, while supporting security of supply.
Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.
