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Winter Peak Demand Reduction Scheme (WPDRS)

Winter Peak Demand Reduction Scheme (WPDRS). Michael Walsh ESB National Grid Sustainable Energy Ireland – LIEN Workshop Kilkenny, 22 nd July 2004. Presentation Overview. Winter Demand Reduction Incentives How does WPDRS work? Results from 2003/04 Product Development Next Steps

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Winter Peak Demand Reduction Scheme (WPDRS)

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

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

  3. 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

  4. Effect on Peak 1999 – 2000

  5. Effect on Peak 1999 – 2000 2000 – 2001

  6. Effect on Peak 1999 – 2000 2000 – 2001 2001 – 2002

  7. Effect on Peak 1999 – 2000 2000 – 2001 2001 – 2002 2002 – 2003

  8. Effect on Peak 1999 – 2000 2000 – 2001 2001 – 2002 2002 – 2003 No noticeable effect on Peak in 2002/03!

  9. 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

  10. 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

  11. 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

  12. Payment examples – indicative (assuming 100% reliability)

  13. Results from 2003/04 • Customers signed up • Load reduction each day • Total paid out • Effect on Peak?

  14. 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

  15. 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

  16. 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

  17. 19MW 86MW 143MW 105MW 16MW 24MW 330MW 40MW 39MW 56MW 18MW Sum of baselines 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 Telecoms / Transport Manufacturing / Textile Office / Banking / Retail Mining offered little Food (not meat) / Beverage Chemical / Pharmaceutical Areas of possible improvement can be identified with suppliers on an individual basis Industry Sector

  18. 2003/04 Results – Peak down though Consumption overall up

  19. 2003/04 Results Summary • 186 Customers • ~ 80MW load reduction each day • Total paid out : • Customers: €2.4m • Suppliers: €120,000 • Effect on Peak…

  20. Effect on Peak? 1999 – 2000 2000 – 2001 2001 – 2002 2002 – 2003

  21. Effect on Peak 1999 – 2000 2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 Effect on Peak returns in 2003/04!

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

  23. 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

  24. Effect of protecting the Energy Payment

  25. 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

  26. Information - Proposed Workshops

  27. 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

  28. Information – Contacting ESBNG • Telephone queries to ESBNG Customer Relations • Telephone: 01 702 6642 • E-mails enquiries to wpdrs@eirgrid.com ALL APPLICATIONS MUST COME VIA SUPPLIER

  29. www.eirgrid.com

  30. www.eirgrid.com

  31. www.eirgrid.com

  32. 2003/04 Results – Effect on Peak 2002/03 Peak : 4400MW (7th January 2003)

  33. 2003/04 Results – Effect on Peak 2002/03 Peak : 4400MW (7th January 2003) 2003/04 Peak : 4329MW (27th January 2004)

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