1. D3 – Integrating the Demand Side KTN 2014 Annual Conference Localised Energy Systems: Challenges and Opportunities 27 March 2014 Dr Michael Jampel Deputy Director, Energy Efficiency Deployment Office

2. Great Britain’s electricity networks face a challenging future We need large scale generation Demand side and local measures also central to meeting UK’s future energy needs A decade of change

3. Evaluating Demand Side Energy DECC has commissioned a review of policy and technical models relating to D3: –Demand reduction –Demand response –Distributed energy How D3 is incorporated into DECC’s whole system energy models

4. Government has wide portfolio of energy efficiency policies in place EEDO co-ordinates – Products Policy recently added Forthcoming areas of activity: ESOS, Demand Reduction Pilot, Zero Carbon Homes Energy Efficiency Strategy Update December 2013 D3 – Demand Reduction

5. Short-term shifting or flexing of load by reducing demand, increasing export or taking excess energy from a network DSR eligible for Capacity Market E.g. winter peak: 3-7pm DECC Energy Entrepreneurs Fund D3 – Demand Side Response

6. Will play active role in meeting local energy demand FITs – 420,000+ since April 2010 – 87% PV RHI – domestic in spring 2014 Community Energy Strategy launched January 2014 DECC’s new Heat Networks Delivery Unit aims to transform UK district heating market D3 – Distributed Energy

7. New Smart Grid Vision & Routemap published Sets out need for investment in new smarter and low carbon technologies Can provide gateway to wider energy system integration – facilitating the ‘Smart City’ and community energy scheme initiatives Smart Grid Revolution

8. Demand Side/Consumer Focus ASHP Solar thermal Biomass BoilerCHPHeat Network MicroCHP New Distribution Network storage Insulation Solar PV Smart Meter DSR Behaviour change D38

9. Thank you