Energy Bill and Electricity Demand Reduction Consultation provide new opportunities for demand response
Energy analysts predict a 32-35% annual rise in demand response participation in the UK
It’s very encouraging that the Government has today recognised that non-generation technologies, such as demand response and energy reduction, should play a key role in achieving a robust and sustainable long-term solution for the UK energy industry.
London, 29 November, 2012 – Following the UK Government’s publication of the Energy Bill, the importance of new measures designed to reduce peak demand for expensive electricity, while ensuring a secure, low carbon and affordable electricity supply for future generations, has been highlighted by Energy and Climate Change Secretary Edward Davey in parliament today.
The UK Government recognises the need to reduce electricity demand while lowering carbon emissions. Today it has issued a consultation on electricity demand reduction, which will examine the options to encourage permanent reductions in electricity usage as part of a new Capacity Market.
The Department of Energy and Climate Change (DECC) has set out a range of options as part of its Electricity Demand Reduction Consultation that are likely to be far more cost-effective than building additional generating capacity. Final details will be published early next year after the consultation deadline closes on 31 January 2013.
“The demand side response industry has taken an active role in helping to shape the design of the capacity market,” said Yoav Zingher, director and co-founder of KiWi Power, “We look forward to a new capacity mechanism that will ensure demand response has a place, not only in the short-term transitional arrangements, but also in a mechanism that will allow demand side response to compete in an enduring market.”
He continued: “Demand response is already active in providing balancing services for the National Grid. It’s very encouraging that the Government has today recognised that non-generation technologies, such as demand response and energy reduction, should play a key role in achieving a robust and sustainable long-term solution for the UK energy industry.”
Demand response growth in the UK
While the demand response market in the UK is relatively immature compared to that of the US, energy analysts from Pike Research are predicting a 32-35% annual rise in DR participation in the UK over the next six years.
“Our expanding portfolios of customers that currently participate in demand response come from a diverse range of industry sectors, including water treatment, hospitals, retail distribution sites, mining and manufacturing. This certainly reflects the growth potential in the UK for commercial and industrial businesses looking to reduce energy costs, lower their carbon footprint and generate an entirely new risk-free revenue stream.” commented Zingher.