It is about creating flexibility on the demand side of the UK energy market, so that the entire energy market becomes more resilient and agile in times of real distress. The NEM experiment, with peak energy consumption and demand, came to an abrupt halt in 2009. What was initially seen as a temporary response to the economic conditions that followed the financial crisis now appears to be a persistent – and perhaps secular – trend towards lower electricity demand. Many factors have contributed to the observed decline in consumption7: the capacity market The government (in particular BEIS) has introduced the capacity market to ensure that there is sufficient free energy capacity in times of emergency („systemic stress events“), for example. B in the event of a sudden increase in demand or a significant drop in the production of renewable energies. The capacity market is managed by National Grid, which provides an incentive for large electricity consumers to supply the grid. The highest-paid DSR systems require you to commit to reducing or shifting a minimum of energy consumption and demonstrating the amount of demand you have reduced when prompted to do so. As we are an aggregator, we can help you participate with relatively small amounts of electricity. But we need to be sure that you are able to react quickly. The bilateral agreement model allows independent aggregators to work with a low degree of complexity.
It ensures fairness for the relevant stakeholders, as they express their agreement in the agreement. The profitability of this model depends on the terms of the contracts. Independent aggregators may face competition concerns, as their participation depends on the goodwill of the supplier/BRP source, although this can be resolved by regulated and enforceable standard contracts. Re-dispatch services may be provided by other competing sources of flexibility, so they do not necessarily have to be provided exclusively by the response to demand. Regulation limited to demand response excludes other flexibility providers and, therefore, authorities opting for the adoption of MEASURES specific to the SCA should ensure that they can justify limited eligibility criteria. A justification for separate interruption regimes for forwarding purposes may be their potential to free up new capacity and create flexibility that could not otherwise have been made available to the TSO. The proper functioning of the wholesale and retail electricity markets will stimulate the response of demand through price signals, as prices will be low in times of abundant production and high in times of high demand and limited supply. Automated charge transfer by load measurements could be provided by a home energy management infrastructure (e.g. B smart energy gateways/boxes capable of coordinating supply and home equipment ready to meet demand with a smart meter). It is therefore appropriate not only to allow consumers who produce renewable energy themselves to adapt their consumption to the availability of their electricity production, but also to offer flexibility to the entire energy system, including through aggregators.
. . .