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GB Electricity Demand Project- realising the resource
Project and Smart Demand Forum
Since 2006, Sustainability First has undertaken a series of major
multi-sponsor studies on GB household smart energy meters, smart
energy tariffs and demand response (see publications page for outputs
of these projects).
The Sustainability First project on GB Electricity Demand
began in April 2011. It is supported in its first year under the
CE-Electric Low Carbon Network Fund project - and thereafter for
a further two years to April 2014 via a multi-sponsor group.
Sponsors include : BEAMA ; British Gas ; CE Electric UK ; EdF Energy
; Elexon; E-Meter Strategic Consulting; E.ON UK ; National Grid
; ScottishPower Networks ; UK Power Networks.
Work is coordinated through a Smart Demand Forum
whose participants also include a number of key consumer bodies
(Energy Intensive Users Group, Which?, Consumer Focus and National
Energy Action), DECC and Ofgem – plus the sponsor group members.
The project aims to identify the potential resource which the electricity
demand side could offer into the GB electricity market through demand
response and demand reduction. The project aims to:
- Evaluate and understand the potential GB electricity demand-side
resource across all economic sectors (including the role of distributed
and micro-generation)
- Develop a clearer understanding of the economic value of this
resource to different market actors and to different customers
over the next 10-15 years
- Evaluate the key customer, commercial, regulatory and policy
issues and interactions.
The project will develop a substantive knowledge-base, and provide
visibility and thought-leadership for GB electricity demand-side
issues. The project is undertaking work relevant to:
- GB smart meter deployment.
- Low Carbon Network Fund projects – emerging lessons and
insights from the LCNF projects will be fed into the project
- Proposals for Electricity Market Reform
The work programme is delivered through : the Smart Demand Forum;
annual wider stakeholder events; a series of published papers and
other materials. The Sustainability First team is Gill Owen, Judith
Ward and Maria Pooley.
Additional expertise and inputs are provided by Serena Hesmondhalgh
of Brattle Group who is developing a quantitative all-sector demand
model. Stephen Andrews is providing support on distributed generation
and micro-generation.
Key themes for the project include:
- Customer Response and Consumer Issues –
to understand successful and cost-efficient demand-side participation
from a customer and consumer perspective (household, industry,
commercial and public sectors). This will include experience provided
through the LCNF trials (e.g. tariffs, remote control of appliances,
technologies such as micro-generation, electric vehicles etc.)
and other similar initiatives in the UK and elsewhere. For households,
this will include any particular issues for the fuel poor and
potential distributional impacts.
- Commercial - Practical realisation of demand-side
services - given different roles and requirements in the value
chain. Issues likely to include : the nature of commercial agreements,
the role of third parties,(DNOs, ESCOs, aggregators) the kind
of information-sharing likely to be necessary between parties
etc. – drawing from practical experiences of the LCNF Trials
and other experience in the UK and elsewhere.
- Regulatory – near and longer term regulatory
factors that impact upon development of an active electricity
demand-side for Great Britain – including current agreements
between market actors, statutory codes, incentives in price controls,
settlement, and third-party requirements. This will include experiences
within the LCNF trials, and also feed into future considerations
for price controls, RIIO and other thinking on innovation incentives.
- Public Policy Issues – likely economic
value and potential contribution of the demand side to: cost-efficiency
across the electricity sector; security of supply; carbon-emission
reductions. Business models, approaches and incentives for integrating
the demand side into the electricity market, including its interactions
with Electricity Market Reform, smart meter roll-out and energy
efficiency schemes such as the CRC Energy Efficiency Mechanism,
Green Deal and Energy Company Obligation.
The project will also draw upon relevant information from demand
side developments in other countries (notably the EU and US) to
inform its work.
Papers to be published in the first year of the project will be:
Paper
1 - GB Electricity Demand - context and 2010 baseline data
Paper 2 - GB Electricity Demand 2010 and 2025 – scope for
flexible response
Paper 3 - What demand-side services could GB customers offer?
Paper 4 - What demand-side services can provide value to the electricity
sector?
Topics for papers in future years are likely to include:
- Alignment of commercial drivers and regulatory incentives
- Public policy and realisation of electricity demand-side
- Distributed generation
- Active industrial and commercial customers
- Active household and micro-business customers
- Consumer issues
- Longer-term demand-side realisation and innovation
GB Electricity Demand Project - Publications
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to view & download all related publications
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Sustainability First
Grosvenor Gardens House
35-37 Grosvenor Gardens
London
SW1W 0BS
info@sustainabilityfirst.org.uk
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to view & download all related publications
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