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Enhancing Demand Side Units for Efficient Energy Management Below 10MW Export Capacity

This proposal outlines strategies for Demand Side Units (DSUs) with a maximum export capacity less than 10MW. It discusses the integration of load reduction, standby diesel generators, and inactive combined heat and power (CHP) systems for optimizing demand reduction at large heat load sites. The modification proposal emphasizes the importance of limiting maximum export capacity to align with regulatory thresholds while encouraging participation from large energy users in the wholesale market. The aim is to further market development, competition, and consumer interests, ultimately leading to a more efficient energy system.

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Enhancing Demand Side Units for Efficient Energy Management Below 10MW Export Capacity

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  1. 1st February 2010 Michael Peters Demand Side Units with a Maximum Export Capacity < 10MW

  2. Introduction • DSU sites which can offer demand reduction through a combination of: • Load Reduction (refrigeration, pumps etc.) • Standby diesel generators • Inactive CHP plant (possibly seasonal) • Sites with large heat load typically have export capacity – but profile still similar to demand only site

  3. Modification Proposal • The demand site shall have a Maximum Import Capacity and shall not have a Maximum Export Capacity greater than the De Minimis Threshold.

  4. DSU Import Only – Normal Operation Grid M 3 Maximum Export Capacity = 0 8 5 Load CHP

  5. DSU Import Only – Load Reduction Grid M 3 1 Maximum Export Capacity = 0 Load Reduction of 2 MW 8 6 5 Load CHP

  6. DSU with MEC – Normal Operation Grid M 1 Maximum Export Capacity 3MW 4 5 Load CHP

  7. DSU with MEC – Load Reduction Grid M 3 1 Maximum Export Capacity 3MW Load Reduction of 2 MW 4 5 2 Load CHP

  8. Load Reduction Profile 2MW Load Reduction has the same benefit to the system whether it is reducing demand or “negative demand”

  9. Why not participate as AGU? • Does not capture load reduction potential • Gross settlement results in excessive import costs • If generation capacity > MEC => Non-Firm Access

  10. Conclusion • The Modifcation Proposal: • Encourages greater participation of Large Energy Users in wholesale market through DSUs • Furthers Code Objectives through: • Development of SEM • Promotes competition • Promotes long-term interests of consumers

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