TURNING DATA CENTRES INTO GOOD GRID CITIZENS IS THE WAY FORWARD

The transition to renewables-based energy generation presents new challenges for both grid operators and consumers, explains Lucy Plant, Manager Strategic Partnerships, Energy Solutions at Enel X.

The intermittent nature of renewable energy generation, which is largely reliant on the weather, calls for flexibility in both demand and generation to balance the grid where the energy mix contains a greater proportion of renewables.

Large energy users like data centres are continuing to adapt to this energy transition. Data centre operators have already tackled energy efficiency savings by optimising servers and cooling equipment.

To become even better grid citizens and to achieve a low-carbon agenda they must work in partnership with the grid to help keep their systems running and the lights on for the rest of us.

There are many pathways to low-carbon energy and data centre operators must decide which strategy is right for them.

Options include participating in flexibility services like demand response, battery storage, and contractual agreements with green energy suppliers.

Each option helps data centres become good grid citizens, plus there’s an added bonus that participating in demand response presents revenue generating opportunities.

Demand Side Response services

While renewable energy sources are intermittent, they are largely predictable.

To modulate fluctuating generation and demand, grid operators need active participation from their largest energy users to increase grid security and stability of supply.

Demand Side Response (DSR) is a powerful and effective strategy that incentivises data centres to free up grid capacity when it is needed most.

For data centres, DSR participation can look like switching to their own backup generation and battery storage to reduce demand during peak period emergencies.

This might be on a cold, still winter evening when wind generation is low and demand is high.

Through DSR, data centre operators can offer flexibility to help balance the grid and accommodate more green energy on the system.

DSR also provides a safe way for data centres to test back-up systems while the grid is available, increasing their resilience should an unexpected grid outage happen.

Data centre operators that participate in DSR programmes see it as a way to mitigate interruptions to the power source, rather than a threat to uptime.

The reward for data centres is a revenue opportunity for simply being available. This valuable income can help offset energy costs or invest in further low-carbon measures. DSR has proven to be a successful, cost-effective strategy for grid operators for several years and, when managed effectively, doesn’t adversely impact data centre operations.

A highly versatile asset for any data centre is its battery energy storage system (BESS). It solves multiple challenges from operational needs, providing standby power for resilience and recovery during a power failure, improving the quality of power, or storing energy generated on site. If the stored energy is not required by the data centre or there is spare capacity, it can be used to support the grid. Microsoft has successfully used battery storage at one of its data centres in Ireland to support EirGrid. It has participated in a market for grid services that prioritises noncarbon-emitting solutions. Microsoft participates in this market through Enel X, which aggregates industrial and commercial energy consumers into virtual power plants.

Power purchase agreements

Data centre operators are also showing strong leadership on corporate renewable procurement with many looking to buy Power Purchase Agreements (PPAs). PPAs enable data centres to procure long-term contracts with operators of renewable assets. These contracts help data centres to move towards decarbonisation targets and enhance their corporate reputation. PPAs also directly support the development of renewables infrastructure and an increase in renewable generation on the grid system.

As large energy consumers, data centres have the potential to make a tremendous impact on grid innovation and sustainability.

Working with a skilled energy management partner ensures that appropriate plans and technology are in place to help data centres optimise their energy flexibility and become good grid citizens. Support can help to monetise the flexibility of energy assets, reduce costs, optimise revenue from onsite energy storage and generation and implement other efficiency measures like power purchase agreements.

www.enelx.com