Europe’s energy landscape is undergoing a profound transformation, driven by the surge in renewable power. Solar panels and wind turbines are reshaping the grid with clean, sustainable energy, but their inherent variability introduces a new challenge: maintaining stability in real time. When the sun dips or the wind calms, the delicate balance between supply and demand can become disrupted.
Demand Response offers a low-carbon, cost-effective solution to address this challenge, leveraging flexible consumption and generation to stabilise the grid without resorting to fossil-fuel backup.
For over two decades, Centrica Energy has delivered Demand Response solutions, and our Virtual Power Plant (VPP) operating in the Belgian market provides a compelling example of VPPs delivering real-time grid support. Acting as a Balancing Service Provider (BSP) to Transmission System Operators (TSOs) across Europe, we aggregate and steer distributed energy resources such as batteries, industrial loads, and renewable generation to help TSOs maintain grid balance in a cost- and carbon-efficient way.
Let’s turn to a few practical examples on how this works:
It’s a cold winter afternoon in Belgium. Just before market closing time, a forecast error hits: wind output drops sharply, whilst residential demand surges with people returning home. The timing couldn’t be worse. As the Transmission System Operator, Elia doesn’t have the tools required to directly adjust injection or offtake of power; they rely on flexibility from generators and consumers procured through Ancillary Services. That’s where we step in. Acting as a Balancing Service Provider, we send real-time dispatch signals to battery parks, industrial sites, flexible renewable assets, and even on-site assets at data center operators like Google, dynamically adjusting production and consumption to keep the grid stable.
Now picture the summer sun blazing over Belgium. Solar panels are working overtime, flooding the grid with excess generation. Instead of ramping up further, our Virtual Power Plant takes control, sending smart signals to curtail output or incentivise consumption. The surplus is absorbed, and the system stays balanced. These real-time interventions make Demand Response indispensable for integrating renewables. In effect, our VPP performs the role of a traditional peak power plant, delivering critical flexibility without burning a single drop of fossil fuel.
Google and Centrica: A Partnership for Grid Stability
One of the most innovative applications and examples of demand-side flexibility is our collaboration with Google in Belgium. Since 2020, Centrica Energy and Google have partnered to explore how Google’s data centres, among the country’s largest electricity consumers, can actively support grid stability via an on-site battery storage system.
As of this year, we’ve expanded our partnership to include Google’s IT load-based demand response capability. The concept is simple yet powerful: when the Belgian grid is under pressure, Google shifts non-urgent computing tasks from its local data centre to other times and locations. Google’s IT load-based demand response capability is dispatched by Centrica Energy’s proprietary optimisation algorithm, integrating both IT load demand response and battery storage capabilities hand in hand.
The result? Google’s flexible computing load reduces grid stress while maximising renewable energy use. Every activation is transparently shared with Google, reinforcing a partnership built on trust and shared sustainability goals.
Why Demand Response Is Critical for the Energy Transition
As renewable penetration grows, so does the need for flexibility. Even the best forecasts can’t fully predict wind and solar output, making imbalances inevitable. Demand Response is becoming a cornerstone of modern energy systems, absorbing volatility, reducing emissions, and unlocking new value for large energy consumers. And with Europe’s 2030 and 2050 climate targets fast approaching, Demand Response is no longer just a technical solution; it’s a strategic enabler of the green transition.
With deep expertise in asset optimisation and grid balancing, Centrica Energy is here to enable that shift, helping businesses transform their flexibility into a competitive edge. Whether optimising battery parks, industrial loads, renewable assets, or digital infrastructure, we deliver real-time, multi-market trading and optimisation that support both commercial goals and sustainability ambitions.
Only one question remains: Are you ready to unlock your flexibility?
