Demand Side Response and how it can work for you

Brian Lonn

Leader of Sales and Origination UK for Virtual Power Plant and Flexibility

Yasmin Ali

Control Room Manager for Community Energy

Agenda

What is Demand Side Response (DSR), how does it work and why is it important?

What is E.ON doing with DSR? The benefits of DSR to participants. Case study – Citigen. Next steps for you.

What is DSR?

DSR stands for Demand Side Response

Demand side can be broadly defined as any flexible load or generation

connected to the distribution network.

Response is a deliberate modification in electricity consumption or generation in

response to an external signal.

How does DSR support the electricity system?

50 Hz

49.5 Hz 50.5 Hz

Balanced grid

Generation Demand

Supply = Demand

DSR helps control costs

of balancing the system.

New sources of revenue

and potential to reduce

certain third party

charges for customers to

offset increasing energy

costs.

Security of

supply Affordability Lower carbon

Reduces our reliance

on fossil power

stations.

With 4GW of DSR in

the Capacity Market,

the UK would avoid

building 10 new

400MW power

plants.

DSR contributes to

grid stability.

Demand side

flexibility supports

the integration of

intermittent

renewables.

Why is DSR important?

What is E.ON doing with DSR?

E.ON is reinventing itself and is striving to be your partner of choice for

integrated energy solutions.

Demand Side Response can be delivered as a stand-alone service, or along with

supply or other energy solutions as an integrated solution.

E.ON works with customers to create a bespoke flexibility optimisation strategy,

then implements it to maximise the value of flexibility for our customers.

E.ON has over 350 customer flexible assets plus 2GW of renewable generation

connected to its in-house developed Virtual Power Plant platform across the UK

and Germany.

TRIAD Regional

Products

Grid con-

straints

Imbalance

mgmt. Day-

ahead

Flexibility and Value-Pool Manager

Central Energy Markets Local Energy Markets

Marke

t V

alu

e P

oo

l A

ssets

Residential Commercial Municipalities Industrial SME Local Energy

Systems

Backup

Generator

Industrial

Loads

Wind

and PV Pumps

Electrical

Heating CHP HVAC Batteries E-Car

Current E.ON VPP UK

Cu

stom

ers

FFR* FCDM STOR Intra-

day P2P

National Grid

CM

Demand

Turn

Up*

Under

Development Future Ongoing

E.ON’s Flexibility and Value Pool Manager Vision

*Not currently products available to E.ON customers.

The benefits to customers of participating in DSR

Reducing net energy spend savings from new revenues

DSR may maximise additional revenue and savings from existing infrastructure,

giving you more control over energy spend.

Future proofing and innovation

Proactively benefit from savings today, and by being more flexible you may

avoid extreme peaks future in energy prices.

Improve your Corporate Social Responsibility and help keep the lights on

Help to reduce the need for traditional power plants and enable more

renewable generation, while supporting security of supply.

Efficient use of capital

Little or no investment required from your side into non-core energy

infrastructure projects.

Case Study: Citigen

What is Citigen?

Planned business as usual for Citigen.

How DSR will be implemented to benefit Citigen’s stakeholders.

Citigen Business Plan 2015

Glenn Harrison

The Citigen Network

Heat and chill loads are fairly similar through most of the day – heat peak higher

than chill but at around 3pm demands are roughly equal.

Dispatch of at least one CHP to provide chill and heat.

Electric chillers used infrequently when export price drops markedly.

Citigen’s previous run regime was heat led

Now Citigen’s run regime will be value led

CHP 1 Weekday Weekend

Morning On On

Afternoon On On, available for DTU

Overnight On, available for DTU On, available for DTU

CHP 2 Weekday Weekend

Morning Off, available for STOR Off, available for STOR

Afternoon Off, available for STOR Off, available for STOR

Overnight Off Off

When activated for Demand Turn Up (DTU) then Combined Heat and Power (CHP) will ramp

down, and backup boilers deliver heat.

When activated for Short Term Operating Reserve (STOR) then CHP will ramp up, and heat will

be stored for later.

Citigen is also participating in the Capacity Market.

Different seasons will require a different DSR strategy

Benefits to Citigen, customers and electricity system

Revenue from DSR schemes help Citigen to serve its heat and chill customers at a

lower net cost.

Citigen’s customers can benefit from lower heat prices, and efficient district

heating schemes can grow.

Using the flexibility from Citigen will provide a system benefit by adding power to

the system when it is stressed, or taking power out of the system when there is

excess.

As next steps, Citigen is now investigating opportunities for thermal store

optimisation, grid-scale batteries and engine tuning to further increase the

benefits from flexibility.

Citigen is a complex example, but every customer has flexibility in how they

consume or produce power, with an associated cost to activate.

For Citigen we worked with the operations teams to identify their flexibility, and

agree a strategy to optimise it.

Citigen remains in control of their availability and we regularly revisit the strategy

to ensure it is still the best fit for them.

How can the Citigen example apply to your facility?

Next steps – how can you get involved in DSR?

Understand flexibility and provide

indicative value assessment

Agree commercial and technical

concept

Prepare to deliver DSR services

DSR service commences

As a large energy user there is to be a DSR opportunity which works for you and

which may help you to reduce net energy cost.

A solutions provider can help you identify your flexibility, and agree the right

strategy with you to optimise it.

A couple of key takeaways

Any questions?

Thank you for your time and interest

To learn more come see us at our stand