DSR: Being Power Responsive, 18th June - Full Slidepack
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The Demand Side Response Conference held on June 18th in London focused on the role of electricity demand side markets, opportunities for businesses, and the implementation of demand side response (DSR) strategies. Key discussions highlighted the potential for increased flexibility in managing electricity demand, addressing peak load challenges, and the necessity for collaboration among stakeholders. Various sessions included insights from experts across the energy sector, emphasizing the importance of leveraging DSR to achieve cost-effectiveness and support low carbon energy systems.
![ 2015. UK Power Networks. All rights reserved
Case study: the use of I&C DSR
• Reliability: Out of 185 unique events called during our Low Carbon London
trials, only 19 events received a null response
• Shifting peaks: Payback after achieving load reduction is not as large as
the reduction itself
• Procurement: there is a need to account for availability risk
• Technology F-factors
𝐷𝑆𝑅 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑡𝑜 𝑏𝑒 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑑 [𝑀𝑊] =
𝐷𝑆𝑅 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑡𝑜 𝑀𝑒𝑒𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝑎𝑡 𝑅𝑖𝑠𝑘 [𝑀𝑊]
𝐹 𝐹𝑎𝑐𝑡𝑜𝑟 [%]
Number of DSR facilities
DSR technology type 1 2… 5… 9 10
Diesel 70% 72% 78% 80% 81%
Demand Reduction 54% 58% 62% 63% 64%](https://image.slidesharecdn.com/dsrconference18thjunefullslidepack-150623104213-lva1-app6892/85/DSR-Being-Power-Responsive-18th-June-Full-Slidepack-30-320.jpg)
DSR: Being Power Responsive, 18th June - Full Slidepack
- 1. Demand Side Response Conference Being Power Responsive 18th June London
- 2. Agenda Opening Address Steve Holliday, National Grid Session 1: Electricity Demand Side Markets Today Chair: Professor Dieter Helm CBE, University of Oxford Speakers: David Capper, DECC John Pettigrew, National Grid Gab Barbaro, British Gas Martin Wilcox, UK Power Networks Coffee break Session 2: Opportunities for Your Business Chair: Professor Jim Skea CBE, Imperial College, London Speakers: Maxine Frerk, Ofgem Paul Crewe, J Sainsbury plc Dr Alastair Martin, Flexitricity Neil Gillespie, United Utilities 13:00 Lunch
- 3. Agenda 14:00 Session 3: Incentives & Barriers for Businesses Roundtable Chairs: Judith Ward, Sustainability First Eddie Proffitt, Major Energy Users Council Dan Roberts, Frontier Economics Tea break Session 4: Delivering Flexibility at Scale Chair: Cordi O’Hara, National Grid Interview panel: Sara Vaughan, E.ON UK John Barnett, Northern Power Grid Maxine Frerk, Ofgem Duncan Burt, National Grid Closing Address John Pettigrew, National Grid 16:45 to 18:30 Networking Drinks Reception
- 4. Session 1: Electricity Demand Side Markets Today
- 5. David Capper Deputy Director & Head of Future Electricity Networks
- 6. Electricity system capacity is driven by peak demand 0 10 20 30 40 50 60 00:00 02:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 Non dom. demand Total Demand Projected increase in peak electricity demand from increasing electrification of heat and transport (EA Technology 2012) 24hr business day demand profile (DDM reference case) Domestic demand Demand – GW Peak Demand – GW 120 100 80 60 40 120 0 2012 2030 2050 Cumulative Total Assumed base load (load growth and energy efficiency) Heat Pump Load EV Load DSR: a perspective from Government
- 7. Can we reduce the costs of a conventional response to this challenge? Reduce the cost of our future low carbon energy system and ensure the system remains stable so that customers’ bills are lower and their supply is secure Maximise the use of low carbon, inflexible generation to get value for money Reduce the need for conventional generation, including peaking plant Optimise short term balancing of the system Defer or avoid investment in network reinforcement expenditure DSR: a perspective from Government
- 8. There are alternatives which could balance the system more efficiently… Supply via interconnector Export of excess supply via interconnector Intermittent renewable generation Excess electricity stored & used when demand exceeds supply Intermittent renewable generation Demand decrease Interconnection Energy Efficiency DSR and Storage (i.e. Smart Energy) DSR: a perspective from Government
- 9. So how much DSR potential is there? • Current DSR restricted to large industry & embedded generation (c.2 GW) and Economy 7 tariffs (c. 2.4 GW) • Study has estimated total technical potential of up to c.18GW of shiftable load on a winter weekday evening, increasing over time • Report has assessed the technical potential for load shifting in the commercial sector at 1.2 - 4.4GW • Extrapolating from UK trials, the present domestic potential could be in the region of 1.3 – 2.5 GW • Longer term potential likely to be higher DSR: a perspective from Government
- 10. DSR in the Capacity Market • Capacity market aims to deliver: • Security of electricity supply • Cost-effectiveness • Specific features for DSR participation • Transitional arrangements DSR: a perspective from Government
- 11. DECC has launched Phase II pf the EDR Pilot • £6million available to projects which improve energy efficiency at peak times • Wide range of projects eligible to take part, including replacement of old pumps, motors, refrigerators and light fittings with new high efficiency equivalents • Improvements made from Phase I • Register by 3 September and submit your full application by 15 October 2015. The auction will take place in January 2016 • Guidance, forms and information about workshops and other events can be found on www.gov.uk/electricity-demand-reduction-pilot Electricity Demand Reduction Pilot DSR: a perspective from Government
- 12. John Pettigrew UK Executive Director National Grid
- 13. Commercial and Domestic Customers Electricity Distribution Networks National Grid Gas Distribution UK Other Gas Distribution Networks National Grid Transmission UK (Electricity & Gas) Electricity Generators Gas Producers and Importers SystemOperator Our Core Role in UK
- 14. Wind Installed Onshore & Offshore Capacity (MW) Fossil Reduction in Generation Capacity (GW) Solar Installed Capacity (MW) Demand Weather Corrected Annual Electricity (TWh) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 360 340 320 300 280 2008 2010 2012 2014 Changing Energy Landscape 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2009 2010 2011 2012 2013 2014 3 1 -1 -3 -5 -7
- 15. System Operation Changes Replacement Energy Sources Lower Minimum Demands Future Supply & Capacity
- 16. Demand Side Response Transmission Charging EMR Delivery Body Balancing Services Industry Facilitation
- 17. Summary
- 18. Gab Barbaro Managing Director, British Gas Business Services
- 24. Martin Wilcox Head of Future Networks
- 25. 2015. UK Power Networks. All rights reserved Agenda • Why UK Power Networks and other DNOs are exploring DSR • Our experience – Low Carbon London • Our view on the current markets • Next steps in UK Power Networks’ engagement with the demand side
- 26. 2015. UK Power Networks. All rights reserved Why are we considering DSR? 0 500 1,000 1,500 2,000 2,500 3,000 + HIGH HEAT PUMP UPTAKE + HIGH ELECTRIC VECHICLE UPTAKE + HIGH RESIDENTIAL SOLAR UPTAKE UKPN CORE SCENARIO: £1545m Costofreinforcement, includingSmart(£m) Source: UK Power Networks analysis using the Transform model configured for its own licence areas
- 27. 2015. UK Power Networks. All rights reserved Why are we considering DSR? Smart solutions can help manage future networks peaks Source: Forecast household demands in 2025 taken from P. Djapic, M. Kairudeen, M. Aunedi, J. Dragovic, D. Papadaskalopoulos, I. Konstantelos, G. Strbac, “Design and real-time control of smart distribution networks”, Low Carbon London Report D3, Imperial College London, 2014. Business as Usual Smart Time of day Time of day Diversifieddemandper household(kW) Diversifieddemandper household(kW) Baseline Appliances Electric Vehicles Heat pumps
- 28. 2015. UK Power Networks. All rights reserved Attractiveness of DSR to address the challenges • Established contractual arrangements led historically by the GB System Operator (National Grid) • It re-utilises standby generation assets • Leverages increasing sophistication in building controls and building automation • In the case of some I&C customers, DNOs currently retain some direct interaction with them We started our initiative “Low Carbon London” in 2011 to trial I&C and residential DSR at scale and build confidence of this service
- 29. 2015. UK Power Networks. All rights reserved Low Carbon London What did we trial? £/Mw/hr £0 £20 £40 £60 £80 £100 £120 0 1 2 3 4 5 6 Trial Period Low Carbon London DSR Trials Winter 2012-13 Summer 2013 Winter 2013-14 Winter 2014-15Summer 2012Winter 2011-12 Size 6MW Site 200kW Site Diesel CHP Load Reduction Gas Type Source: Analysis of Low Carbon London trial data AvailabilityPayment(£/MW/hr)
- 30. 2015. UK Power Networks. All rights reserved Case study: the use of I&C DSR • Reliability: Out of 185 unique events called during our Low Carbon London trials, only 19 events received a null response • Shifting peaks: Payback after achieving load reduction is not as large as the reduction itself • Procurement: there is a need to account for availability risk • Technology F-factors 𝐷𝑆𝑅 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑡𝑜 𝑏𝑒 𝑃𝑟𝑜𝑐𝑢𝑟𝑒𝑑 [𝑀𝑊] = 𝐷𝑆𝑅 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑡𝑜 𝑀𝑒𝑒𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝑎𝑡 𝑅𝑖𝑠𝑘 [𝑀𝑊] 𝐹 𝐹𝑎𝑐𝑡𝑜𝑟 [%] Number of DSR facilities DSR technology type 1 2… 5… 9 10 Diesel 70% 72% 78% 80% 81% Demand Reduction 54% 58% 62% 63% 64%
- 31. 2015. UK Power Networks. All rights reserved What is our view of the current market? • The use of DSR by DNOs, and residential DSR in general, are still in their early stages • DNO use of DSR – I&C DSR contracted by DNOs require process and procedures for mass roll out; – However, I&C DSR can have real benefits for DNOs: – Addressing network constraint issues – Deferring and/or avoiding network investment – Supporting difficult construction outages • Residential DSR (excluding Economy 7) is not yet attractive to DNOs – Residential customers do indeed respond to price signals – However, it must be linked to other value propositions from suppliers and the GB System Operator in order to provide a net saving
- 32. 2015. UK Power Networks. All rights reserved Unlocking DSR Next Steps for UK Power Networks • ED1 Business Plan: – £3.3m budget provisioned in our submission to Ofgem for DSR • Based on a high utilisation price • Based on an availability price in excess of National Grid’s given that we operate in a niche market – Expected total 64MW of DSR – Allocated to 20 schemes which are under review thoughout the period as load growth develops • DSR aggregators and suppliers engagement was held in Q1 2015 to inform our strategy • Market engagement will follow in Q3 2015 following our annual load growth review
- 33. Session 2: Opportunities for Your Business •
- 34. Maxine Frerk Interim Senior Partner for Smarter Grids & Governance
- 35. • GB has seen a growth in intermittent generation. • Flexibility is now important at both the peaks and at times of low demand. The demand side can play an important role in providing this. The GB energy system is changing …
- 36. Price peaks And this is being reflected in prices … 0 50 100 150 200 250 300 00:00 04:00 08:00 12:00 16:00 20:00 Intraday Prices - 17th October 2014 (£/MWh)
- 37. Negative prices And this is being reflected in prices … -20 -10 0 10 20 30 40 50 Apr May Jun Daily Min. Intraday Price (half-hourly), Q2 2014 vs. Q2 2015 (£/MWh) 2014 2015
- 38. Balancing. The SO uses flexibility for reserve and frequency purposes. And suppliers and generators want to manage cash-out risks Flexibility across the value chain Capacity. The system needs to have enough capacity to ensure security of supply at any time of the day Networks. Flexibility can enable the deferral or avoidance of network investments, and support the management of faults Flexibility is an essential feature of energy markets
- 39. 29,800 30,000 30,200 30,400 30,600 30,800 31,000 31,200 31,400 31,600 31,800 15:0014:00 16:00 17:00 18:00 19:00 Typical day Men’s Final Wimbledon Men’s Final Murray vs Djokovic, 7 July 2013 Match begins End of 2nd set Murray breaks for match drop End of broadcast Murray wins End of 1st set
- 40. How flexibility can help Demand Time Demand Time Demand Time Demand Time Demand Time Time-shift load Time-critical reduction ‘Smooth’ general load shape A net load turn-down Load turn- up Source: Adapted from ENA & Energy UK. Discussion paper on Demand Response. 2012.
- 41. There are some ways in which demand can already provide flexibility …. National Grid Demand Balancing Services - STOR (Short – Term Operating Reserve) - Fast Reserve - Frequency Response Cost Avoidance - Triad - General demand reduction/ participation in wholesale market Aggregators Act as intermediaries between I&C customers & National Grid/ electricity market
- 42. And more are on the way …. • Demand Side Balancing Reserve (DSBR) • Capacity Market Participation • DNO – assistance with constraint management
- 43. Ofgem’s work on flexibility •Identifying the barriers to provision and uptake •Looking to capture value of DSR across the value chain : - “Stack” of benefits - Coordination important •Recognise complexity a challenge for I & C customers not core business: - Building understanding - Need for tailored contracts - Role of aggregators? •Storage prices falling – need clarity over the regulatory position •See non-domestic as where the immediate opportunity lies for DSR
- 44. Summary • The GB electricity market is changing and price volatility is increasing, incentivising more flexibility. • Ofgem has sharpened these price signals to reward flexibility through our EBSCR reform, half-hourly settlement. • Ofgem working to remove barriers and facilitate flexibility. • DSR already plays an important role in providing flexibility, and has the potential to develop further in the future. We are keen to hear from DSR providers on how we can facilitate their participation in the market.
- 45. Session 4: Delivering Flexibility at Scale
- 46. Delivering Flexibility at Scale Education and engagement • Simplification of information • Clarity of value proposition • More promotion of opportunities • Greater understanding of schemes Customer led products • Clear packages for customers • Examine product specification • Longer term product opportunities • Flexibility of product design Certainty and stability • Investigate longer term incentives • Address longevity problem • Elimination of uncertainties Coordinated approach • Use collaborative pilots • Customer focussed forums • Collectively agreed targets for DSR
- 47. Demand Side Response Conference Being Power Responsive