Low Carbon Accelerator's portfolio company RLtec works with major energy provider
Low Carbon Accelerator Limited, (“LCA” or the “Company”), the AIM-quoted investment fund specialising in low carbon products and services has announced that RLtec, one of its portfolio companies, has signed a major contract with the energy company, npower, for an initial customer roll-out in the UK of “Dynamic Demand”. Dynamic Demand is RLtec's new technology, developed to help maintain the balance between supply and demand across the UK's National Grid.
After extensive technical due diligence by Ofgem and npower this project, to be implemented over the next two years, is the first 'Demonstration Action' to be approved under the Carbon Emissions Reduction Target (CERT) legislation and will contribute towards npower's carbon reduction obligations.
RLtec has developed grid-management technology to increase the energy efficiency of the whole electricity supply chain, from white goods and appliances through to large scale power generators. The technology has also been examined in detail in a new report published this week by the Department of Energy and Climate Change called: “The Potential of Dynamic Demand.”
Andrew Howe, CEO of RLtec said: “Appliances such as fridges that are fitted with our Dynamic Demand technology automatically modify their power consumption in response to second-by-second changes in the balance between supply and demand on the grid – without affecting performance. The technology has the potential to create a 'virtual' power station and if widely used in the UK could eliminate the need for carbon emitting coal-fired balancing stations and save up to 2 million tonnes of carbon dioxide per year.”
Dr Stephen Mahon, Chief Investment Officer at Low Carbon Investors (“LCI”), the Fund's Investment Manager, who sits on the board of RLtec, said: “The first major revenue generating contract is a significant milestone for any technology company and is a genuine vindication for RLtec's product. The global market for demand response products is estimated at approximately $15 billion per annum and last year the National Grid spent £770 million on balancing services in the UK alone. We believe large scale roll out of RLtec's technology would enable electricity companies to make optimal use of existing assets and reduce the need for new power generation.”
He added: “LCI's investment model is to deliver shareholder value and make real carbon savings. This, in part, is made possible by working closely with management teams to support them in delivering their breakthrough products or services. LCI, via the investments by LCA, has supported RLtec since seed stage and we congratulate the team on this success in an exciting market.”
Bob Jackson, Carbon Savings Manager at npower said: “Dynamic demand has the potential to significantly reduce the amount of carbon emissions – so these trials with domestic customers are very important and we hope they will show the impact that this technology could have in the UK and around the world.”
It is estimated that by 2015 Britain will face an increased risk of blackouts due to the growing demand for electricity. This coupled with the need to operate grids more efficiently and with greater stability and meet strict EU targets to reduce UK carbon emissions all highlight the need to incorporate demand response technology into the power system.