Gateshead Energy Company, owned by Gateshead Council, is to bolster its coffers by up to £1 million by entering into a demand response partnership with Flexitricity.
The company operates the Gateshead District Energy Scheme, which will provide heat and power to homes, public buildings and businesses throughout Gateshead when it becomes fully operational later this year.
The combined heat and power (CHP) system will have an electricity generation capacity of 4MW and will operate within Flexiticity’s portfolio of assets that participate within demand response programmes designed to smooth energy demand.
By partnering with Flexitricity Gateshead Energy Company will generate revenues whenever the asset’s capacity is in use.
Martin Gannon, leader of Gateshead Council, said the agreement was a “win-win” for the energy company and its customers.
“Not only does it support our business model of providing low cost, low carbon energy to homes, organisations and businesses, but Flexitricity’s system works seamlessly with our own, meaning we can provide heat and power to our customers while supporting critical national infrastructure,” Gannon added.
Meanwhile Alastair Martin, chief strategy officer at Flexitricity, paid testament to the “exciting” district heating projects that are currently in the pipeline.
“Agreeing this partnership with Gateshead Energy Company is another step towards improving the country’s energy security while helping deliver lower-cost energy and heat for its customers,” he added.