National Grid is facing criticism over its decision to axe its demand-side balancing reserve (DSBR) scheme, with experts warning the move will push up greenhouse gas emissions and could lead to higher costs for consumers in the long run. the move has sparked criticism in some quarters, which is only set to increase if margins prove as tight as expected over the winter and fossil fuel plants are frequently called upon to provide back-up power. One senior industry source told BusinessGreen the DSBR had been hampered by limited funds caused by National Grid’s largesse with the accompanying Supplemental Balancing Reserve (SBR) scheme, which offers payments to power plants to provide back-up services. “The underlying issue with the DSBR is payments are capped at £17,000/MW,” he said. “It was undercapitalised from the start because National Grid was held to ransom by power stations that said they would shut down. It is a ridiculous situation where you have got coal plants being paid up to £88,000/MW, while more cost-effective demand-side services are being frozen out.”
Business Green 23rd Aug 2016 read more »
National Grid’s decision to cancel a tender financially incentivising companies to reduce electricity demand during peak times in winter months has been criticised as a “short-sighted” approach which will “undermine” business confidence in the UK energy strategy. The Demand Side Balancing Reserve (DSBR) tender was reportedly withdrawn by the Grid due to a lack of willing participants, following the application closure earlier this summer. The network operator confirmed yesterday (22 August) that it would not be procuring any capacity for this winter, stating “minimal volume would be available across this period”.
Edie 23rd Aug 2016 read more »