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Document Number CLNR-L160

Date Posted 19-Dec 2014

Application Guide: CLNR Demand Side Response Trials

Overview

This document outlines how Demand Side Response (DSR) should be procured and deployed by Northern Powergrid as part of Business as Usual activities.

DSR can offer significant advantages to the conventional “BaU solutions” currently deployed to overcome network constraints:

  • The DNO only needs to purchase the capacity it actually requires, rather than having to purchase the potentially higher discrete increments that traditional reinforcement delivers;
  • DSR can be contracted annually, allowing it to be discontinued if not required in future years;
  • DSR can be environmentally beneficial; and
  • DSR provides a financial benefit to the customers who deliver the DSR service, in the form of DSR payments, as well as to all other connected customers in the form of lower future DUoS charges due to the reduced reinforcement requirements.

Northern Powergrid’s policy is that DSR should always be considered when reviewing the possible options to manage a potential future network constraint and should be selected if:

  • Sufficient DSR resource is available to provide a reliable response; and
  • It is at least cost neutrail to the next most economical solution.

The approach for the use of demand side response at Northern Powergrid is as follows:

  • DSR services will be procured to maintain post-fault security of supply at 132kV and EHV constraint points (for instance a highly loaded primary substation) following a fault on the network that either occurs during, or cannot be fully restored before, the onset of a network peak load. This peak could be a winter evening peak or a summer lunchtime peak, etc. and the constraint will be managed by procuring DSR from customers downstream of the constraint.
  • DSR services will initially be procured from industrial and commercial (I&C) customers; and
  • Research and development will continue to be undertaken to assess the potential for DSR from residential customers to support the above use case and also address different types of network constraint.

This approach will defer investment in the network, therefore providing financial benefits to the DSR providers, the DNO and customers in general. It should be noted that this approach will be subject to annual review following the implementation of DSR services as part of BaU.

 

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