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Demand Side Response

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Demand Side Response (DSR) is any method of reducing electrical use, in response to Peaking demand on the National Grid

Allows system operators such as National Grid to avoid using expensive and polluting “peaking” power stations

What is Demand side Response (DSR) ?

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Where existing backup generators are on-site or planned, they can be used to offset site demand when needed, or used to export back on to the grid

Rescheduling production runs and temporary build up of inventory can dramatically cut consumption at peak times

Process optimisation Onsite generation

A typical DSR programme will also consider:

Building Management Systems (BMS) Existing systems used for intelligent and automated control

Air handling Short term change to temperature set point doesn’t affect comfort and can reduce a building’s consumption by up to 20% *

Lighting Shutting off or dimming certain lights for a short time can cut consumption by up to 15% *

What does a programme look like?

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* Based on trails with customers

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From simple manual turn-down or load shedding…

…to fully automated site load replacement and export back to grid using on-site generation

The level of participation is up to you?

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Short Term Operating Reserve (STOR)

Capacity Mechanism

DSBR

DNO Programmes

Frequency Response

Triad/DuoS Management

National Grid

DECC

National Grid

Individual DNOs

National Grid

Suppliers

Programme Operator

This creates a growing number of opportunities

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Assess site(s) and sign no risk DR Framework

Customer now operational, with SSE and KiWi Power managing events, payments and reporting

We carry out full site audits, designs customer programme, and installs smart meters and controls to execute DR, and train staff

Stage 2: Stage 1: Stage 1:

Engagement

Initial assessment

Sign-up

Stage 2:

Site audit

Programme design

Install, test and train

Stage 3:

Participation

Payments

Report and review

DSR programme journey

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Why do we need Demand Side Response?

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UK electricity demand continues to increase

Year

TW

h p

er

ye

ar

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Source: 2008 BRE Report Changing Energy Use

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e.g. Didcot Power Station closed March 2013 - 2000 MW

And 25% of capacity shutting down Nearly 30GW of capacity reductions already announced

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Source: DECC – Planning our Electric Future white paper: Affordable and Low Carbon Electricity

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More renewables are required to meet the UK’s growing Energy needs The impact is greater devolution, complexity and intermittency of supply…

renewables means less op Which places a greater emphasis on Demand Side measures.

US Electricity Generation UK electricity generation

Renewables would need to be the largest single source of UK electricity in 2020

More renewables are required to meet the UK’s growing energy needs. The impact is greater devolution, complexity and intermittency of supply….

All of which requires a smarter network and balancing. Greater uncertainty or intermittency in supply from renewables means less opportunity for Network balancing from an increasingly large proportion of generation capacity… Which places a greater emphasis on Demand Side measures.

The impact of renewables

32%

13% 6% 2% 1%

46%

2009

Coal NuclearRenewables Other sourcesOil Gas

22%

8%

31%

9%

1%

29%

2020

0

50

100

150

200

250

300

350

2008 2020

Other

Coal

Gas

Neuclear

Renewables

DECC

TWh

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Sources: http://news.bbc.co.uk/1/hi/sci/tech/8150919.stm and Key Issues for the New Parliament 2010 – Balancing the UK Energy Supply

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Benefits of Demand Side Response

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Financial Benefits: Participation can generate significant new revenue streams

No Cost: There is no cost to participants or any interruption to service (depending on the level of participation sought)

Hedging Against Increased Energy Costs: Offset increased energy costs through increased DR payments

Evaluate/Maintain Operational Readiness: Continued monitoring and activation of controls and generation assets ensures infrastructure is operationally sound

Reduce CO2, support renewable generation: Reduce costs through CRC, improve Green credentials as a result of reduced consumption at peak and support intermittent renewable generation

Real-Time Energy Monitoring: Real-time, multi-site smart metering is installed and access is provided through SSE powered by KiWi Powe’s Customer Portal, improving understanding of energy consumption up to asset level

Financial Benefits: Participation can generate significant new revenue streams

The benefits to you

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The benefits to the wider community

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Reduce CO2: Participants immediately help make the UK electricity network less carbon intensive and greener

UK’s Green Programme: Helps with integration of renewable energies such as wind and solar PV on to the GRID

Financial Benefits: OFGEM estimates* that DSR could save the UK £800m annually on transmission costs, and £266m on peak generation capacity –equivalent to £40 saving on every annual bill

Source: *Demand Side Response : A discussion paper - https://www.ofgem.gov.uk/ofgem-publications/57026/dsr-150710.pdf

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• Peaking Power is typically 5 x as polluting as baseload

• DSR saves 400 to 700 grammes of carbon per kWh

• Studies indicate DSR could save 1.2m tonne of CO2 emissions annually by 2030

• Renewable energy sources are intermittent and DSR balances the grid

• The information provided by SSE powered by KiWi Power’s platform provides real-time energy intelligence and technology to further reduce consumption

• Turning down demand at peak times is substantially cheaper than burning fossil fuels at peaking power stations

• OFGEM estimates that DSR could save the UK £800m annually on transmission costs, and £266m on peak generation capacity

DSR is cleaner than generation:

DSR is cheaper than generation:

DSR supports renewable energy and energy efficiency:

Wider benefits to DSR

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Source: Demand Side Response : A discussion paper - https://www.ofgem.gov.uk/ofgem-publications/57026/dsr-150710.pdf

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Case Studies

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• Customer since 2012

• Multiple standby generators

• Remote start/stop

• Declared volume: 1MW

(rising to 3MW in April 2014)

• Successful events: 21

• Average event length: 66 min

• Total delivered volume: 26559 kWh

Colchester Hospital

Our Customers

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• Customer since 2012

• Multiple standby generators

• Combined heat and power (CHP)

• Remote start/stop

• Declared volume: 4.5MW

• Successful events: 17

• Average event length: 80 min

• Total delivered volume: 80223 kWh

Lister Hospital

Our Customers

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Energy Monitoring Platform

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Our operations centre provides real-time monitoring of National Grid and all UK DNO’s We also manage real-time data collection from over 650 meter points, making information available to customers through our Customer Portal

Smart technology

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Log in to see all sites and select from screen menu

…drill further to view and compare historical consumption for each meter….

…drill down into live, minute-by-minute kW consumption for each site/meter point…

…receive reports for every DR event, with full details and payment reconciliation.

Customer Portal

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Managing market complexity

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The significant transformation in the UK energy market has brought about a large amount of new policy and regulatory developments, many of which are still on-going

Our expertise is in understanding and influencing these policy decisions to benefit it’s Demand Side Response clients to open participation to customers

Driving an evolving market

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From STOR, through DSBR and DNO Programmes, to Capacity Mechanism and beyond – more DSR is required to ‘keep the lights on’ , and we are best placed to guide and partner you on the journey

The market for Demand Side Response exists today, and is growing. There are many potential markets, each with their own operational criteria and more are coming

From niche and complex to critical

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Further information contact:

07917212193

[email protected]

www.sseenterprise.co.uk

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