Task XIX Micro Demand Response & Energy Saving. Linda Hull September 2010

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1 Task XIX Micro Demand Response & Energy Saving Linda Hull September 2010

2 Task XIX some background Scope of project What have we done? What have we learnt?

3 Background Task XIX was established as part of the International Energy Agency Implementing Agreement on Demand Side Management IEA DSM Implementing Agreement was established in 1993 Its aim is 'Promoting Energy Efficiency and Demand-Side Management for global sustainable development and for business opportunities' More information available on its activities is available at

4 Project Structure Operating Agent Netherlands Finland France Greece India Spain UK VTT Ademe PPC BEE NL Agency REE Other Sources Govt Energy Suppliers System Operator DECC Centrica EDF Energy E.ON SSE National Grid

5 Scope Demand response and energy saving products via provision of information & remote / automatic switching End-use monitoring and feedback Time of use pricing Remote/automatic switching Customer types Residential Small and medium enterprises Commercial and / or industrial sites Sites with a maximum demand < 100kW generally without interval metering Fuel type Electricity only

6 Demand Side Management Load level (amount of energy consumed) Load shape (pattern of energy consumption) Appliance measures Insulation Sustained (long term) Flexible (short term) Demand response Behaviour (information to influence energy use) Remote / Automatic Switching TOU Pricing

7 Two International Reports Produced Micro Demand Response and Energy Saving Products: Definition of the Requirements and the Options for Effective Delivery Evaluating the Business Case for Micro Demand Response and Energy Saving

8 Micro Demand Response and Energy Saving Products: Requirements & Options for Effective Delivery Overview of electricity system and trading arrangements Demand Response Requirements Review of Case Studies and Pilots End Use Demand Changes Delivery Mechanisms Technical Architecture Components

9 Residential Loads in Participating Countries UK Spain Netherlands Greece France Finland 0% 20% 40% 60% 80% 100% Heating Hot Water A/C Lighting Cold Appliances Wet Appliances Consumer Electronics ICT Cooking Saunas Car Heating Fans Other % of Residential Consumption 60% 50% 40% 30% 20% 10% interruptible schedulable hybrid convenience 0% Finland France Greece Netherlands Spain UK

10 Evaluating the Business Case for Micro Demand Response and Energy Saving Five Country Specific Case Studies Dynamic control of electric heater loads, Finland Dynamic response of residential heating loads, France Energy efficient air-conditioning equipment, Greece Mass installation of energy efficient lighting, India Direct load control of commercial air conditioning, UK

11 Direct load control of commercial a/c, UK NPV to aggregator ( /customer) Annual Benefit ( /customer/year) Control, Monitoring & Communication Technology costs (per customer) 50 Upfront, 5/year ongoing 100 Upfront, 10/year ongoing 200 Upfront, 20/year ongoing 300 Upfront, 30/year ongoing

12 What have we learnt? GB electricity market is complex, with a diverse range of stakeholders that is likely to increase There are information gaps Lack of information on the consumption habits of commercial, particularly SME, consumers Lack of information on when different end uses occur, for both domestic and SME consumers Technologies are rapidly evolving in this area but few are mass market

13 What have we learnt? (2) Tariff-based interventions are likely to be the easiest to implement in current market arrangements, particularly for domestic consumers New and evolving loads, especially Air Conditioning, Electric Vehicles and Heat Pumps, present interesting opportunities for load shifting The degree to which consumers will be willing to engage with programmes is currently unknown