Winter Peak Demand Reduction Scheme WPDRS

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Winter Peak Demand Reduction Scheme (WPDRS)

• Michael Walsh
• ESB National Grid
• Sustainable Energy Ireland LIEN Workshop
• Kilkenny, 22nd July 2004

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Presentation Overview

• Winter Demand Reduction Incentives
• How does WPDRS work?
• Results from 2003/04
• Product Development
• Next Steps
• Information

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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 Customersand it showed

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Effect on Peak
1999 2000
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Effect on Peak
1999 2000 2000 2001
6
Effect on Peak
1999 2000 2000 2001 2001 2002
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Effect on Peak
1999 2000 2000 2001 2001 2002 2002
2003
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Effect on Peak
1999 2000 2000 2001 2001 2002 2002
2003
No noticeable effect on Peak in 2002/03!
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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

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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

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Payment Structure - summary
RELIABILITY

• 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
ENERGY

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

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Payment examples indicative (assuming 100
reliability)
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Results from 2003/04

• Customers signed up
• Load reduction each day
• Total paid out
• Effect on Peak?

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2003/04 Results Customers Signed-up

• Level of Participation

186 participating

• Total of 639 Customers able to take part
• 29 signed up
• Increased Customer Base for 2004/05 season

453 non-participating
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2003/04 Results Monthly Peak Reduction

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

Peak Reduction Delivered 80 MW
82.5 MW
83.0 MW
84.4 MW
81.3 MW
90
80
70
60
50
Average MW Reductions
40
30
20
10
0
Nov
Dec
Jan
Feb
Month
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WPDRS Results - Payments and Rebates

• Overall Payments and Rebates by Month

Actual Payments
700000
600000
500000
Energy
400000
300000
Reliability

200000
Rebate
100000
Total
0
-100000
-200000
Nov
Dec
Jan
Feb
Month
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WPDRS Metrics and Results Sign-up (3)

• Sign-up breakdown by industry

80
70
60
50
40

Number of Participants
30
20
of Total Baseline Load
Subscribed
10
0
of Participants Total
Baseline Load Subscribed
Mining
Agricultural
Food Retail
Hotel / Hospital
Cement / Paper
Refrigeration / Meat
Manufacturing / Textile
Telecoms / Transport
Mining offered little
Office / Banking / Retail
Food (not meat) / Beverage
Chemical / Pharmaceutical
Areas of possible improvement can be identified
with suppliers on an individual basis
Industry Sector
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2003/04 Results Peak down though Consumption
overall up
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2003/04 Results Summary

• 186 Customers
• 80MW load reduction each day
• Total paid out
• Customers 2.4m
• Suppliers 120,000
• Effect on Peak

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Effect on Peak?
1999 2000 2000 2001 2001 2002 2002
2003
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Effect on Peak
1999 2000 2000 2001 2001 2002 2002
2003 2003 2004
Effect on Peak returns in 2003/04!
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WPDRS Development

• Results published
• Consultation Process
• May June 2004
• Responses received from Suppliers, Customers and
  others
• Changes to Scheme proposed

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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

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Effect of protecting the Energy Payment
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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

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Information - Proposed Workshops
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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

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Information Contacting ESBNG

• Telephone queries to ESBNG Customer Relations
• Telephone [phone]
• E-mails enquiries to wpdrs_at_eirgrid.com
• ALL APPLICATIONS MUST COME VIA SUPPLIER

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• www.eirgrid.com

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• www.eirgrid.com

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• www.eirgrid.com

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2003/04 Results Effect on Peak
2002/03 Peak 4400MW (7th January 2003)
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2003/04 Results Effect on Peak
2002/03 Peak 4400MW (7th January 2003) 2003/04
Peak 4329MW (27th January 2004)