Demand Side Units with a Maximum Export Capacity < 10MW

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