1. Director of Sales – Pearlstone Energy Ltd
Demand Side Response
An Overview
Mark Cooke
Director of Sales – Pearlstone Energy Ltd

2. Demand Side Response ?
Demand Response: relates to any program which encourages 
shift of (demand) of energy by consumers.
The participation of the end customers is a response to factors 
such as  incentive pricing, new tariff schemes, greater awareness and an increased sense of  responsibility.  
The end consumers agree to involvement, but their participation may involve  either active behavioural changes or passive 
responses, through the use of automation.

3. Why DSR? – Its All About Balancing The Grid

5. Dirty generation being Phased Out
11.5GW closed as at
end of 2015
Expect at least another
8GW over next ten years.
Without emergency measures, 2016 coal plant closures will plunge the UK’s capacity margin to -5% !! 

6. Solutions needed to manage volatility

7. Keep The Lights On
The key Challenge for Governments, Regulators & Electrical Utilities

8. The Energy Landscape For Organisations is Changing
Businesses are becoming active participants in the energy system as opposed to passive consumers
Fundamental structural change away from linear networks to a distributed system where energy is decentralised, more variable and complex
Source: The Major Energy Users’ Council in association with National Grid

9. Why Consider DSR – Where Does it Fit?
Price
Pay Less
Volume Use Less
Energy Strategy
Time Shift usage
Strategy
Procure
Control
Optimise
Perform
Strategic
Practical
Functional

10. DSR in Operation Frequency Response Limited to electrical plant which
can be turned on/off for short periods,
quickly. Up to 30 mins, with notice period ranging from 0.5 seconds to thirty seconds.
Reserves
Suitable for a broad range of electrical
plant devices – turn on/off, up/down.
Up to 120 mins, with notice periods as low as 10 minutes.
Frequency response and reserve services
such as STOR co-exist on a daily basis
to balance the grid

11. DSR In Operation 49.5 49.2 Frequency (Hz) 10 s 60 s 50.0 Time 49.8
50.2
Dynamic - Continuous Service
Occasional Service
30 s
Primary
Secondary (to 30 mins)
Reserve

12. Demand Side Response – Revenue & Savings
Balancing Services
FREQUENCY RESPONSE
Earning extra income from your assets by automatically adjusting consumption in real-time to help balance the grid. Response time within seconds.
Firm Frequency Response FFR
Dynamic or Static
FCDM
Frequency Cntrl Demand Management
Enhanced Frequency Response
Peak Avoidance
TRIAD & DUoS
Shifting consumption away from times of peak demand to avoid high energy costs
TRIAD avoidance avoids high TNUoS periods
Red zone management avoids high DUoS costs
Balancing Services
RESERVE
Earning extra income from your assets by reducing, increasing or shifting electricity consumption. Response time within minutes
STOR
Short Term Operating Reserve
Demand Turn Up
Fast Reserve
DSBR
Demand Side Balancing Reserve
Enhanced
Frequency
Response
Dynamic or
Static
Freq Control Demand Management
FCDM

13. Levels of Return – Illustrative maximums
Overly simplistic to demand one type of service based on an understanding of
Per MW/h rates. Buildings need to be optimized for sustainable returns.
Optimization is Key
Type of building, the processes
within it, the plant installed, the
comfort conditions of occupants
and appetite for risk.
By season
By service, balanced against the type,
function and availability of plant.
Hour by Hour optimisation, matching
Service and plant suitability to the
needs of the organisation.
Max Returns Per Service
D FFR
EFR
S FFR
STOR
DUOS
Triad
£/MW 18 8 7
119 40
42,000
Max Hrs/day 24 16 2 4
Max £/Day
432
128
168
238
160
Days / Yr
365
240 3
Max Rev/ pa
£157,680
£46,720
£61,320
£57,120
£38,400
£42,000
Max Returns Per Optimised Building
Days
215 25
Hrs/pa
5840
430
960 50
18.00
8.00
7.00
119.00
40.00
Total £
£105,120 £0
£51,170
Optimised
£236,690
Figures are illustrative and not based on actual building

14. A new, unique resource – ‘Flexible Load’
Manufacturing
Automated, co-ordinated reduction in electric load of devices across buildings
Educational
Cold Stores
Commercial
Up, Down, On, Off, Cycle, Pre-cool, Pre-heat

15. Buildings and Equipment
Decrease or increase all zone temperature set point by 2°C
Reduce the fan speed on water cooled condenser units and reduce the speed of the Versatemp water pump
Switch off one of the Triplex lifts and one of the Duplex lifts
Switch off all split units serving areas not occupied
Switch off the HVAC primary boiler and associated circulating pumps
Switch perimeter heating pumps

16. ADR Event Results - Example
Commercial Office Building
265 kW normal building load on 18 September
Phased increase: 10%, 15%, 25%, 36%
97 kW shed for 2 hours: 4pm – 6pm (36% reduction)
97 kW reduction
Chilled water pumps
Heating pumps
Conference rooms AHU
Boilers
Chillers
Main AHU reduced to 20Hz
700 kW reduction
None of the occupants noticed!
120kw reduction

17. Commercial Building Case Study
Bradford Head Office & Main Call Centre
Customer owns building
13,600m2
1000 staff
£300k annual electricity bill
>1 MW peak electrical capacity
Primarily HVAC load
Modern BMS (Honeywell EBI), controlling most electrical loads
Not currently managing Triad or DUoS charges
Not currently participating in DSR
DSR Strategy
Turn down supply & extract fans on 15 x AHUs by 66%
Duty cycle Air Compressor: 7.5 mins On/22.5 mins Off
Adjust set points by 30 C on 2 x chillers
High and Low shed options + FFR potential
Opportunity
318kW load shed potential: £18,000
Additionally with FFR, £30,000 pa
No cost to customer

18. Automated, Secure, Open Standard Solution
Fiscal
Electricity Meter with Modbus gateway
Electrical Plant Devices
DR Automation Server (DRAS)
Gateway
Gateway Polls out
Every minute
Internet
Connection to 99+%
BMS /SCADA systems
Demand Response
Aggregator FW
Wholesale Trader
DNO
Demand Charge Management
BMS with load adjustment strategies pre-loaded
Customer’s Building

19. Customer Common Concerns
Why use an Aggregator?
How much will I make, the financial rewards don’t seem compelling?
What is the impact on my processes, building and occupants?
The technology is complicated
What is the risk to our IT network

20. The significance of demand charges
Energy Cost Stack for a Typical Customer
Transmission Network
Use of System Charge
Measured retrospectively between November and February
Calculated by multiplying average kW consumption in the three annual Triad half hours by a regional tariff charge
- Can be 300 x normal electricity rate
Demand Use of System Charge
Charges made on a 24/7 basis by DNO
Green, Amber, Red charging periods
Red period in London adds £43/MWh to bill
Demand Charges are responsible for ~25% of the total electricity bill

21. Triad Charges Triad demand is measured between November and February
Calculated by multiplying your average kW consumption in the three annual Triad half hours by your regional tariff charge
Have increased 378% since 2009
Normal £0.10 kWh increases to £51.25 kWh (London)

22. £25/MWh every day from 5pm-7pm
DUoS Charges
£25/MWh every day from 5pm-7pm

23. Thank You
Any Questions

24. Notes
The system operator last week procured 201MW of sub-second enhanced frequency response (EFR), the vast majority of which will be delivered by batteries. By 2040, National Grid has predicted that up to 18GW of energy storage will be online (although its scenarios range from 3.6GW to 18.3GW).
Meanwhile, it predicts that battery storage costs will halve over the next three years.
However, more than 1.3GW of energy storage prequalified for the EFR tender, leaving a gigawatt of project potential without a contract. Smartest Energy has called on National Grid to maintain the momentum and signpost its intentions to the sector in terms of procurement.
Almost 70% of the battery innovators indicated that the biggest revenue opportunity they were looking to employ would come from grid services such as EFR contracts. However, more than half of the survey's respondents stated that these contracts are limited and at a maximum of four years, fall short of the 5-10 year payback timeline expected.