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Development of a Demand Side Response Methodology

Development of a Demand Side Response Methodology. DSR WG5. 11 November 2014. Agenda. DSR Product Design DSR Trial The DSR Methodology Initial Survey feedback. The D SR Product Design. DSR Product Design .

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Development of a Demand Side Response Methodology

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  1. Development of a Demand Side Response Methodology DSR WG5 11 November 2014

  2. Agenda DSR Product Design DSR Trial The DSR Methodology Initial Survey feedback

  3. The DSR Product Design

  4. DSR Product Design The following slides outline the DSR product which has been developed and agreed during the course of the DSR workgroups

  5. DSR Mechanism Process Flow:Daily or Multi-day Offers GDE Stage 3 Declared GDE Stage 2 Declared GDE Stage 1 Declared GDW Declared Site Firm Load Shed Shipper/Supplier & End User agree contract to post DSR offer DSR offer posted by Shipper/Supplier Can submit offers stack order lowest price accepted first DSR offer MAY BE accepted by NG on the Locational Market Settlement period M+23 Settlement period M+4M Accepted DSR offer exercised DAILY Accepted offer DSR volumes settled @ 30 day av SAP YES 30 days average SAP NO YES YES Accepted DSR offer exercised MULTI –DAY Post multi day DSR volume paid @ 30 D av SAP 3 day multi day Offer 3 day multi day Offer Paid upto zone isolation YES YES Settled on offer price Involuntary DSR settled @ 30 day av SAP DSR offer not accepted & involuntary DSR Day 2 Day 3 Day 1 Day 4 Day 5

  6. DSR Product Design

  7. Locational Platform favoured DSR Mechanism • Removes the need for additional markets to be created and monitored: • Likely to be less development cost and governed under existing UNC provisions

  8. The DSR Trial

  9. DSR Trial Overview Timeline of paper based DSR trial mechanism Option Development Consultation Authority Decision Key Stage Gate

  10. Pre-Trial Go Live Requirements Engage with Ofgem and Industry to determine objectives and define success criteria for the DSR trial Trial scenario to be developed that is likely to follow similar structure as the Network Gas Supply Emergency exercise scenarios Timeline to be developed providing details of the incident(s), responses, instructions and actions that will take place within the trial Industry and Ofgem engagement will be sought to register interest in participation in the trial Await Ofgem confirmation that trial can commence

  11. Pre-Trial Timeline Option Development Consultation Authority Decision

  12. Next Steps

  13. DSR Methodology and Mechanism Timescales 2016 2014 2015 ? SC 8I Licence changes Implemented Nov 14 12/02/2014 09/04/2014 01/10/2016 01/03/2015 ? ? ? ? May 2014 – Jan 2015 May – Jul Sep - Dec Feb - Sep Run Trial (subject to Authority Direction) Industry Development of a draft DSR Methodology & DSR Mechanism System Design, Build, Test & Implementation Final Modification and consult Consultation closes SC8I draft published Implement methodology & mechanism Submit a draft Methodology to Ofgem Submit report on trial to Ofgem Ofgem decision We are here and on track

  14. DSR Methodology Consultation Timescales Feb 15 Nov 14 Dec 14 Jan 15 Finalise Methodology, Proposal & Consultation Paper 01/03/2015 Prepare Methodology and consultation report 19 Jan – 19 Feb 19 Dec – 18 Jan DSR Methodology Consultation 10 Dec WG6 Submit a draft proposed DSR Methodology and consultation report to Ofgem 18 Dec UNC Panel Early Feb Workgroup meet to discuss consultation report 20/02/14 Report to UNC Panel 11 Nov WG5 Seek agreement of draft DSR Methodology and draft Consultation Proposal Workgroup to prepare Workgroup report Based on proposal

  15. Next Steps

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