Demand Side Response

Demand Side Response (DSR) is a key feature of our innovation strategy. DSR involves incentivising customers to change their energy usage in order to help the network operator. Through the LCNF and NIA innovation funding we have gained significant experience with various forms of DSR, this document summarises our key projects and learning to date in the area of domestic customer led DSR. Comprehensive reports for all the projects mentioned can be found on our website as well as information about our wider innovation works.

The Community Energy Action project investigated the potential for 10 local community groups to help avoid reinforcement of local distribution transformers and reduce general energy usage. This project proved that the cost of incentives and customer engagement significantly outweighed the costs of conventional reinforcement. No statistically significant drop in demand was seen and qualitative analysis showed that financial community incentives were not a strong driver. 

Our ECHO project looked to assess our customers’ willingness to shift domestic demand through the use of incentives and quantify the theoretical levels of demand shifting possible across the network together with an associated overall cost. Customer demand was controlled through the use of Smart Plugs.  After recruiting 190 customers, the project highlighted the difficulties of keeping customers engaged. It also emphasised the relatively high costs required to incentivise customers. Coupled with the high number of customers required, costs were an order of magnitude higher than conventional reinforcement.

The SoLa Bristol project installed solar PV and batteries in 26 homes and 5 schools and offices. These systems automatically responded to a time of use tariff aimed to reduce network constraints. This highlighted the large differences between individual customer usage and the various approaches to system control required. The project also identified the large scale of deployment (50-60% penetration) needed to make a significant impact on a DNO network.

The Sunshine Tariff project looked to link increases in local community demand to times of peak solar output. By incentivising customers to shift demand into the middle of the day through a supplier led time of use tariff, the trial investigated the feasibility of connecting additional community owned generation. This highlighted the importance of half hourly settlement in the delivery of customer benefits as well as the little demand shift possible. Despite most customers thinking they had shifted energy, only homes with automation systems showed significant changes.

These wide ranging projects have helped us to develop a good understanding of domestic DSR. These complement the learning from projects such as Low Carbon London by UK Power Networks and Customer Led Network Revolution by Northern Powergrid. In current market conditions, with the limited demand that can be shifted and the challenges of engaging and keeping customers, domestic DSR isn’t currently a feasible alternative to conventional reinforcement. We would expect this to be the case until certain key enablers such as half hourly settlement, widespread automation and the ability to gain value from multiple sources are common place. This would allow customers to access the full value of their flexibility with minimal intervention. As such, in order to continue delivering maximum value to the end customer, we will initially be focussing on transitioning the more mature, industrial and commercial DSR to business as usual. 

We strongly believe in equal access to all forms of DSR providers and is focussed on ensuring any DSR markets and products developed are accessible to all. This will allow third parties such as suppliers, aggregator and equipment manufacturers to provide domestic DSR as the area matures. Such organisations could utilise existing relationships with customers, coupled with technological improvements and market changes to make domestic DSR more attractive to customers and more valuable to providers.

We still see significant value in investigating the potential impacts of new low carbon technologies on our network, as well as understanding what level of flexibility customers would be willing to accept on these new loads to reduce connection costs. These will have a large impact on domestic customers and the way they need utilise energy. As such we are currently running several trials looking into future domestic LCTs. 

These include our Electric Nation Trial, the largest Electric Vehicle trial in the world. This is seeking to investigate the potential impacts of EVs on our network as well as potential smart charging options.

In partnership with Wales & West Utilities, the FREEDOM project is investigating the network, consumer and broader energy system implications of high volume deployment of hybrid heat pumps. The technology will create additional flexibility by allowing customers to switch between electric and gas depending largely on fuel pricing and network conditions at certain times

Finally our LV Connect & Manage project is looking to develop low cost active network management for domestic customers. These would autonomously throttle output when the network is constrained. This could allow us to connect more LCTs without overloading networks.

These projects should improve our understanding of new LCTs and the impacts they might have on our network. In addition they will help quantify the potential new flexibility that could be added to the network. 

For more information on any of these projects please check out our website: www.westernpowerinnovation.co.uk or email wpdinnovation@westernpower.co.uk.