Scenario Scoping for DSM Price Signals
National Grid Electricity System Operator
National Grid TO Innovation Team
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Innovation Funding Incentive
Originally Poyry provided a report to Electricity North West Ltd which gave an initial indication regarding the strength of price signal Electricity North West Ltd might be able to provide to a market
where the distribution network is at risk would be strong enough to over-ride
signals from Grid and suppliers. Subsequently Electricity North West Ltd approached National Grid
to participate in a joint study looking at the uses and interaction of DSR (Demand
Side Response) in general.
The analysis requires the definition of drivers by stakeholders and scenario
analysis in order to be able to begin to quantify the total value of the different
ways in which Demand Side Management (DSM) can be used by different parties. Understanding the drivers
and scenarios will allow beginning to see when uses of DSR by different
stakeholders may be in conflict and when they might be aligned. This is in turn
allows to investigate the value to different parties of DSR in particular
circumstances and hence the way in which it may be used. This will ultimately
feed into the analysis of commercial arrangements that need to be struck
There are five key dimensions of understanding the uses of DSR:
- Magnitude: How much DSR will be needed in MW terms
- Duration: How long will the DSR need to be used for, minutes, hours etc.
- Timing: When will DSR be dispatched, time of year, time of day etc and what is
the frequency associate with this and how often within season, within week
- Notice period: Over what period of time will DSR be utilised and how far in
advance will this be known i.e minutes, hours, days etc.
- Location: When will the use of DSR need to consider locations i.e. where and at
what level of the T&D network will DSR be used and how localised will this be.
To develop an understanding of when the stakeholders of DSM (TSO, DNO and supplier) are in tandem or in conflict and to
present an initial quantification of the value associated with various uses of DSM.
A detailed quantitative assessment can take place as an extension of this study
if it is deemed useful in light of this initial work.