National Grid is to cancel its Demand Side Balancing Reserve (DSBR) for Winter 2016 after confirming that minimal volume would be available across the period.
Despite amending the DSBR Service via a consultation last September to encourage participation over the peak, National Grid has stated “it is clear this has not been successful.”
This decision is a significant turnaround from National Grid’s stance last year, with the firm’s head of Commercial Operations stating that demand measures would be used to meet over 50% of balancing requirements by 2030.National Grid has said it remains committed to the development of demand side response and will continue to encourage innovation through its Power Responsive campaign.
A letter published on National Grid’s website read; “Our decision not to procure DSBR for 2016/17 has been made using all relevant information available to us at the time and following detailed analysis of volume over peak; giving appropriate consideration to the cost and expected benefit of DSBR and our licence requirement to procure services on an economic and efficient basis.”
National Grid has already procured a number of large generation units under the Supplemental Balancing Reserve (SBR) so it will be hoped that these offer sufficient back-up for this Winter. DSR providers may now need to focus on options available through the Capacity Market and National Grid’s other reserve products.