National Grid awards “shutdown” contracts
11 Sep 2014
National Grid is in the process of awarding contracts to major energy users such as process facilities to shut down their operations at times of peak demand.
Throughout September the grid operator is awarding contracts to firms that responded to June’s tender inviting companies to take part in its Demand Side Balancing Reserve (DSBR) scheme.
DSBR offers firms capable of freeing up a minimum of 1MW capacity on the Grid the opportunity to be paid fees ranging between £1,000 per MWh and £15,000 per MWh.
We have had a very positive response to the DSBR pilot
National Grid UK Market Operation director Cordi O’Hara
The scheme will run between 4pm and 8pm every night during two winter periods, November 2014 to February 2015 and November 2015 to February 2016. June’s tender, from which contracts are now being awarded, covers the first of these periods this winter.
Up to 330MW of demand side capacity has been sought in this initial tender, and National Grid UK Market Operation director Cordi O’Hara said she was pleased with the initial response.
“We have had a very positive response to the DSBR pilot and plan to offer contracts to the successful parties in September,” she said.
DSBR is open to any plant with a half-hourly meter, and the only technology required will be a mobile phone to receive text message notifications of when National Grid want operators to turn down their electricity consumption from the grid.
The scheme is scheduled to be replaced in winter 2016/2017 by a demand side response (DSR) scheme that forms part of the government’s wider capacity payment regime, the first auction of which was announced by the government in June, approved by the European Commission in July and is set to take place in December.
