Grid balancing

Grid balancing

The imbalance between electricity generation and consumption leads to grid instability

As the share of weather-dependent renewable energy sources, namely wind and solar power plants, increases in the energy mix, power generation becomes more volatile at the system level. This volatility not only causes power prices to fluctuate but also seriously affects grid stability. The frequency of the grid falls below the equilibrium point (50 Hertz in Europe, 60 Hertz in the US) when consumption is higher than what is generated, and it exceeds the optimum if electricity generation surpasses consumption.

Grid operators face an ever-growing challenge in maintaining stability 24/7, as there are only a limited number of tools available for grid balancing.

Grid balancing services: Demand response

Demand response, also known as demand-side response, places the responsibility of grid balancing into the hands of the consumer. If large consumers with a flexible load profile adjust their consumption during times of high demand and prices, they can help balance peak production times and restore the balance of the grid.

Demand response capacity is expected to increase globally by about tenfold by 2030. Being a first-mover will provide a competitive advantage in terms of efficiency and more favorable electricity prices.

What are the benefits of grid balancing?


Demand response reduces the likelihood and negative consequences of forced and unplanned power outages without requiring additional investment from the operator.


Operators may financially incentivize participation in demand response because it positively impacts grid reliability, allowing consumers to enjoy favorable prices.


Smart energy consumption helps reduce reliance on inefficient coal-fueled power plants.


With more flexibility added to the system, it becomes feasible to completely decarbonize and transition to a fully renewable energy supply for the power grid.

Controlled Demand response with Enerhash

We recognize that integrating a consumer with a flexible base load profile can help balance periodic overload and volatility, thus stabilizing the power grid. Depending on the grid frequency, Enerhash data centers can react within a second: their consumption can be decreased during peak demand, and they can be turned on to absorb excess capacity from the grid when supply surpasses demand.

Participating in Freqency Containment Reserve (FCR) becomes feasible

FCR, or primary containment reserve, is designed to quickly intervene and balance supply and demand in the power grid. This requires fast-reacting batteries and data centers. The Enerhash data center can decrease its consumption within a second to act as primary control reserve for frequency disturbances and power plant outages.

The quick response time of Enerhash data centers allows power plants to balance the grid as Frequency Containment Reserve contributors, resulting in much higher electricity prices.