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Overview of the Winter Peak Demand Reduction Scheme (WPDRS) by ESB National Grid

This presentation by Michael Walsh at the LIEN Workshop in Kilkenny discusses the Winter Peak Demand Reduction Scheme (WPDRS) introduced by ESB National Grid to incentivize customers to reduce energy consumption during peak demand periods. The presentation highlights the functioning of the WPDRS, participation results from the 2003/04 season, the payment structure, and future developments. It aims to ensure that all customers, including those supplied by independent suppliers, have access to these incentives, thus improving overall system security and efficiency.

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Overview of the Winter Peak Demand Reduction Scheme (WPDRS) by ESB National Grid

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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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