Demand Side Balancing Reserve and Supplemental Balancing Reserve
Background
National Grid have been working with DECC and Ofgem to explore options that would provide consumers with additional safeguards against an uncertain security of supply outlook during the mid-decade period. All three organisations agreed it would be prudent to develop new tools that could provide additional reserves to support us in balancing the system if margins get tight.
Two new balancing services were developed during the latter half of 2013 through an industry consultation process, and these products were approved by Ofgem on 19th December 2013. Ofgem’s decision letter was published on their website.
The new balancing services are Demand Side Balancing Reserve (DSBR) and Supplemental Balancing Reserve (SBR). DSBR is targeted at large energy users willing to reduce their demand during winter weekday evenings between 4 and 8 pm in return for a payment. SBR is targeted at keeping power stations in reserve that would otherwise be closed or mothballed. These services will act as a safety net to protect consumers, only to be deployed in the unlikely and extreme circumstances of there being insufficient capacity available in the market to meet demand.
We identified a requirement for these services for the upcoming winters and recently tendered for a small volume of DSBR for winter 2014/15 as part of a pilot for the new service. The results of this tender will be published shortly.
There have been developments in recent weeks regarding this winter’s security of supply outlook. As a result, we are taking the precautionary measure of tendering for the SBR service for the 2014/15 winter to complement the DSBR procured under the pilot. The volume of SBR procured will depend on how this situation evolves and prices offered in the tender process.
The requirement for winter 2015/16 will be tendered to both DSBR and SBR in the autumn of this year, and early in 2015.
Documentation associated with these services is provided below:
SBR Tender 2014/15
23 September 2014
SBR Clarification Note #1
02 September 2014
SBR Open Letter
02 September 2014
SBR Invitation to Tender 2014/15
02 September 2014
SBR Service Description and Tender Process
02 September 2014
SBR Winter 2014 Tender Sheets
02 September 2014
SBR 2014 Tender Explanation and Guidance Document
02 September 2014
SBR Contract Terms
02 September 2014
SBR Frequently Asked Questions
Volume Requirements
10 June 2014
Industry Open Letter - Volume and Procurement
10 June 2014
Volume Requirements Methodology
DSBR Tender 2014/15
26 September 2014
DSBR 2014/15 Market Information
23 September 2014
DSBR 2014/15 Market Update
19 August 2014
DSBR 2014/15 Standard Contract Terms
10 June 2014
DSBR Invitation to Tender
Our tender process has now closed.
10 June 2014
DSBR Service Description and Tender Process
10 June 2014
DSBR Tender Guidance Document
10 June 2014
DSBR Frequently Asked Questions
DSBR Documentation
10 June 2014
DSBR Factsheet
10 June 2014
DSBR Overview V3.0
10 June 2014
DSBR Procurement Methodology
10 June 2014
DSBR Draft Guidance Note
SBR Documentation
02 September 2014
SBR Service Overview V4.0
10 June 2014
SBR Procurement Methodology
Expressions of Interest
04 April 2014
Expressions of Interest Results
10 March 2014
DSBR Questions
10 March 2014
SBR Questions
05 March 2014
Expressions of Interest Invitation
05 March 2014
DSBR Service Description
05 March 2014
SBR Service Description
05 March 2014
Operations Forum Slides (26th Feb 2014)
Reports submitted to Ofgem
29 November 2013
Demand side balancing reserve report
29 November 2013
Supplemental balancing reserve report
Final Proposals
14 November 2013
Update workshop slides
17 October 2013
DSBR SBR Workshop Details
15 October 2013
Final Proposals: Consultation on Demand-Side Balancing Reserve and Supplemental Balancing Reserve
Additional tools to support system balancing against a background of narrowing plant margins mid-decade.
11 October 2013
Factsheet: New tools to balance the network
Consultation Documents
22 July 2013
Supplemental Note 1
22 July 2013
Industry Workshop (17th July 2013) – Ofgem Slide Pack
22 July 2013
Industry Workshop (17th July 2013) – National Grid Slide Pack
09 July 2013
Industry workshop details
27 June 2013
Consultation on Demand Side Balancing Reserve and Supplemental Balancing Reserve
27 June 2013
Appendix C
Indicative Changes to C16 Statements
27 June 2013
Register for updates
SBR and DSBR Consultation Responses
29 November 2013
Barking Power
29 November 2013
Centrica
29 November 2013
Energy Pool
29 November 2013
Energy UK
29 November 2013
GDF Suez
29 November 2013
Intergen
29 November 2013
Salient Systems
29 November 2013
Scottish Power
29 November 2013
Scottish Water
29 November 2013
Smartest Energy
29 November 2013
UK Power Reserve
Consultation Responses
30 August 2013
Barking Power
30 August 2013
Centrica plc
30 August 2013
Chemical Industries Association
30 August 2013
Combined Heat and Power Association
30 August 2013
Confederation of Paper Industries
30 August 2013
Drax Power Limited
30 August 2013
E.ON UK plc
30 August 2013
Ecotricity
30 August 2013
EDF Energy
30 August 2013
Eggborough Power Ltd
30 August 2013
Energy Pool
30 August 2013
Honeywell Building Solutions
30 August 2013
Limejump Ltd
30 August 2013
Long Term STOR Providers
30 August 2013
Mainstream Renewable Power
30 August 2013
Matrix Control Solutions Ltd
30 August 2013
Micropower Ltd
30 August 2013
Negawatt Business Solutions Limited
30 August 2013
PassivSystems Limited
30 August 2013
RWE Supply & Trading GmbH
30 August 2013
Salient Systems Ltd
30 August 2013
Smart Grid Consultancy
30 August 2013
The Electricity Storage Network
30 August 2013
UK Demand Response Association
30 August 2013
Wärtsilä Power Plants
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