UK auction secures 312 MW of demand-side response capacity

The UK‘s National Grid has secured over 312 MW of turndown demand-side response (DSR) in its Transitional Arrangements auction, which aims to support the nation’s capacity market.

The auction for capacity to be delivered in 2017-18 cleared at a price of à‚£45 ($56) per kW per year, with just 60 MW failing to win contracts.

Successful Capacity Agreement winners included aggregator Enernoc, which won contracts valued at à‚£3.9m for 87 MW; aggregator Kiwi Power, winning contracts worth à‚£2.7m for 60 MW; E.ON with 36 MW, Tata Steel with 35 MW, supplier Smartest Energy with 35 MW, industrial gases company BOC with 19 MW; aggregator/supplier Limejump with 17.5 MW; UK Power Reserve with 10 MW; EDF with 8.7 MW and Energy Pool UK with 4 MW. à‚ 

The winners contracted to reduce their energy use through turning down or time-shifting non-critical processes, particularly during peak demand times.

According to the Association for Decentralised Energy (ADE), the auction means businesses across the UK will earn around à‚£14m in revenue. But the group added that nearly 10 GW of business-led demand response capacity remain untapped, “including highly efficient combined heat and power“. à‚ 

Contract winner Smartest Energy said the high price was “good news for the contract winners and will help to build confidence for businesses to participate in DSR”.

The firm called the auction “a great incentive for businesses to make the initial investments to implement load-shifting, putting them in a strong position to also access other revenue streams from the wholesale and balancing markets.” à‚ à‚ 

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