NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid...

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NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July 2004

Transcript of NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid...

Page 1: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Winter Peak Demand Reduction Scheme

(WPDRS)

Michael Walsh ESB National Grid

Sustainable Energy Ireland – LIEN WorkshopKilkenny, 22nd July 2004

Page 2: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Presentation Overview

Winter Demand Reduction Incentives

How does WPDRS work?

Results from 2003/04

Product Development

Next Steps

Information

Page 3: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Winter Demand Reduction Incentives

An incentive to reduce load at peak

System security

Previously most Customers participated in WDRI

Many large Customers moved to Independent Suppliers

WPMP introduced, but not successful

By 2003/03 no real incentive available to independently supplied

Customers…and it showed

Page 4: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

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Page 5: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

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Page 6: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

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Page 7: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

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Page 8: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

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1999 – 20002000 – 20012001 – 20022002 – 2003

Effect on Peak

No noticeable effect on Peak in 2002/03!

Page 9: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Introduction of WPDRS

ESBNG introduced WPDRS in 2003/04

Ensured all Customers had access to incentive

Open to:

– Customers in the Eligible Market

– Supplied by Independent Supplier

– Appropriate metering etc. also required

Page 10: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

How does WPDRS work?

Reliable load reductions and reduced energy

consumption rewarded

– Rebate charged if Customer is unreliable

Customers reduce consumption or bring on

generation to replace demand from system

Incentives offered for Customers with generators who

can export load

Suppliers receive administration fee

Page 11: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Payment Structure - summary

ENERGY

RELIABILITY

€50/MWh •Paid for reduced energy consumption•Can vary day to day

€160/MW

•Paid for remaining below committed quantity

•Set for the month

•Rebate mechanism for breach (€3200/MW)

Total Available Payment:

€210/MW/h = 21c / unit

Page 12: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Payment examples – indicative (assuming 100% reliability)

Company A

Company B

Company C

Baseline Demand (MW) 0.5 3.5 15

Committed Level (MW) 0.2 2.5 3

Committed Quantity (MW) 0.3 1 12

Daily Reliability Payment €96.00 €320.00 €3,840.00

Expected Energy Consumption (Units) 1000 7000 30000

Actual Energy Consumption 400 5000 6000

Reduced Energy Consumption 600 2000 24000

Daily Energy Payment 30 100 1200

Total Daily Payment €126.00 €420.00 €5,040.00

Total Winter Payment €10,332.00 €34,440.00 €413,280.00

Page 13: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Results from 2003/04

Customers signed up

Load reduction each day

Total paid out

Effect on Peak?

Page 14: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

2003/04 Results: Customers Signed-up

Level of Participation

• Total of 639 Customers able to take part

• 29% signed up

• Increased Customer Base for 2004/05 season

186 participating

453 non-participating

Page 15: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

2003/04 Results: Monthly Peak Reduction

How much was delivered under the WPDRS in 2003/04?

82.5 MW 83.0 MW 84.4 MW 81.3 MW

Peak Reduction Delivered ~ 80 MW

0

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Nov Dec Jan FebMonth

Ave

rag

e M

W R

edu

ctio

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Page 16: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

WPDRS Results - Payments and Rebates

Overall Payments and Rebates by Month

Actual Payments

-200000-100000

0100000200000300000400000500000600000700000

Nov Dec Jan FebMonth

Energy

Reliability

Rebate

Total

Page 17: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

WPDRS Metrics and Results: Sign-up (3)

Sign-up breakdown by industry

Mining offered little

19MW

86MW

143MW

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Sum of baselines

Areas of possible improvement can be identified with suppliers on an individual basis

01020304050607080

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ltura

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t / P

aper

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ical /

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aceu

tical

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pital

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extile

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Teleco

ms /

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nspo

rt

Industry Sector

% % Number of Participants

% of Total Baseline LoadSubscribed

% of Participants’ TotalBaseline Load Subscribed

Page 18: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

2003/04 Results – Peak down though Consumption overall up

Total Consumption Winter Peak Demand

10000

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1995 1996 1997 1998 1999 2000 2001 2002 2003

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Page 19: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

2003/04 Results Summary

186 Customers

~ 80MW load reduction each day

Total paid out :• Customers: €2.4m

• Suppliers: €120,000

Effect on Peak…

Page 20: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

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Page 21: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

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Effect on Peak

Effect on Peak returns in 2003/04!

Page 22: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

WPDRS Development

Results published

Consultation Process

May – June 2004

Responses received from Suppliers, Customers and

others

Changes to Scheme proposed

Page 23: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Proposed Changes – Not finalised

CHANGES HAVE NOT BEEN CONFIRMED

Key Change:

Protect Energy Payment from Rebates (see example below)

Still require a minimum level of performance

Other Changes:

Extend Scheme into March

PES Customers will be allowed to participate

More Information

Optimal Committed Level to be calculated

Spreadsheet examples to be published

Page 24: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Effect of protecting the Energy Payment

  

2003/04

Customer A Customer B Customer C

Reliability 2000 5000 8000

Energy Payment (unprotected) 500 3000 5000

Reliability Rebate -800 -7500 -15000

Total Payment 1700 500 0 (Capped)

  2004/05

Reliability 2000 5000 8000

Reliability Rebate -800 -7500 -15000

Total Reliability Payment 1200 0 (Capped) 0 (Capped)

Energy Payment (protected) 500 3000 5000

Total Payment1700 3000 5000

Page 25: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Next Steps

ESBNG to finalise and publish updated Rules

Baselines and Benchmark Ratios available in August

Workshops in September

Application deadline 1st October 2004

All Applications must be made through Supplier

Scheme begins 1st November 2004

Page 26: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Information - Proposed Workshops

WATERFORD Dooley’s HotelTuesday 7th September1:30pm - 4:30pm

CORK Silver SpringsWednesday 8th September9:00am - 1:00pm

LIMERICK Jury’s Hotel Thursday, 9th September9:00am - 1:00pm

SLIGO Riverside Hotel Tuesday 14th September1:30pm - 4:30pm

DUNDALK Ballymascallon HotelWednesday 15th September1:30pm - 4:30pm

DUBLIN Citywest HotelThursday 16th September1:30pm - 4:30pm

Page 27: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Information - Available Documents

All information available on www.eirgrid.com

– Results of 2003/04 Season

– Consultation Document

– Summary of Responses to Consultation

– Final Rules published shortly

Page 28: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

Information – Contacting ESBNG

Telephone queries to ESBNG Customer Relations

– Telephone: 01 702 6642

E-mails enquiries to [email protected]

ALL APPLICATIONS MUST COME VIA SUPPLIER

Page 29: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

www.eirgrid.com

Page 30: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

www.eirgrid.com

Page 31: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

www.eirgrid.com

Page 32: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

2003/04 Results – Effect on Peak

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2002/03 Peak : 4400MW (7th January 2003)

Page 33: NATIONAL GRID Winter Peak Demand Reduction Scheme (WPDRS) Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July.

NATIONAL GRID

2003/04 Results – Effect on Peak

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2002/03 Peak : 4400MW (7th January 2003)

2003/04 Peak : 4329MW (27th January 2004)