National Grid has elected to cancel its Demand Side Balancing Reserve (DSBR) tender for this winter after determining that “minimal volume” would be available.
In a letter addressed to applicants in the tender – which closed on 9 June – National Grid confirmed that it would not be procuring any capacity for this winter, having determined that the system had not been a success after validating the data it received.
“DSBR was designed for those consumers that don’t already reduce/shift demand or run embedded generation during peak times in response to pricing signals and despite National Grid amending the DSBR service via a consultation in September 2015 to encourage participation over the peak, it is clear this has not been successful ,” the letter reads.
National Grid has stressed that the decision has been reached following a detailed analysis of volume over peak demand and considering the expected benefit of DSBR, however a possible reprieve has been alluded to with the grid operator intending to work with DSBR providers on “alternative delivery routes” for this winter.
“We understand from speaking with the DSBR providers that there are certain elements of the service that are particularly valued by the DSR community; we welcome this feedback and will ensure learning from previous DSBR procurement exercises is applied to future service development,” National Grid wrote.
This is a developing story and will be updated as more information is available.
