Market Participant Experiences with Demand Side Bidding and Future Direction Linda Roberts, EA Technology Richard Formby, EA Technology
Overview of Presentation l The role of the IEA l Definition of DSB l Description of DSB products l Experiences with DSB l Developing DSB
The Role of the International Energy Agency (IEA) l To improve the world's energy supply and demand structure by developing alternative energy sources and increasing the efficiency of energy use l Stimulates the development and deployment of new energy technologies through a vast network of Implementing Agreements
IEA Implementing Agreement on Demand Side Management and Technologies l ‘Promoting Energy Efficiency and Demand. Side Management for global sustainable development and for business opportunities' l Task II: Communications Technologies for Demand Side Management l Task VIII: Demand Side Bidding in a Competitive Electricity Market http: //dsm. iea. org
What is Demand Side Bidding? Is it different to Demand Side Management? DSB: Encouraging consumer flexibility for cost reduction DSM: Encouraging load reduction or other long term changes to consumption patterns
Demand Side Bidding Products
Time-Frame associated with Demand Side Bidding Categories Time of delivery Months / days ahead trading Day ahead trading Within day trading Balancing market Access to market prices Network constraints Price setting Quality of supply
DSB and the market place g Ba Balancing Market in nc a lan al B s ry illa Anc System Operator An cil lar y. S Co ns tr g er ain t generation ice Serv cin vic es t Constrain end-use Bilateral Contract transmission distribution Bilateral Contract Supplier Trader Broker Supply Contract ing ark Spot market trading Market Operator S m pot rad et t
Experiences with Demand Side Bidding
Frequency response in the UK l Technical Rules – – available load must be at least 3 MW control must be instantaneous load must be available for up to 30 minutes consumer can specify times that load is available
Frequency Response System Operator Aggregator Cement production
Frequency Response Arc Furnaces
Frequency Response Arc Furnaces Total arc furnace demand 100 MW of firm load
Standing Reserve l Technical Rules – – required within 20 minutes of receiving notification load control can be automatic or manual load must be available for up to 2 hours System Operator specifies ‘windows’ of service
Communications for Demand Side Bidding
DSB and energy efficiency? l Does DSB involve a short-term reduction or increase in demand (k. W)? l Is total energy(k. Wh) the same, increased or reduced? l What is effect on generating mix – does it avoid the use of inefficient generation?
Effect of generation mix on energy efficiency Weekday, December 1996
Conclusions l DSB enables consumers to become active participants in the electricity market l DSB has been successfully operating for a number of years l Need to explore ways of enabling more consumers to participate
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