Energy regulator Ofgem yesterday (17 August) issued a call for input on how to engage domestic consumers in Demand Side Response (DSR).
By issuing a call for input, Ofgem hopes to ensure that the domestic DSR market does not become overly complex for consumers to engage in.
DSR is a mechanism used to reduce electricity consumption during periods of peak demand which often put stress on the national grid. This can often be during periods of extreme heat or cold with many turning to electrical appliances for heating or cooling.
With the UK targeting a decarbonised energy system by 2035, DSR will be required to become a more prominent tool as adoption increases in electrified heating and electric vehicles (EVs).
It can also be used to support many of the upcoming renewable generation technologies, which are often intermittent, such as wind and solar power. Use of these technologies is set to increase significantly with recent analysis showing that by 2025, renewables are predicted to be 61.4% cheaper than gas.
Ofgem has stated that there are various ways in which domestic consumers can become more engaged with DSR both manually and through automation. According to the energy regulator, automated DSR is expected to be the most prominent method and could involve DSR configuring smart devices such as EV chargepoints and heat pumps with default off-peak time settings, optimising consumption against Time of Use Tariffs and choosing to have a third party manage their participation in flexibility markets.
Ofgem has asked stakeholders to send responses by 29 September 2023. Workshops are expected to be held in the autumn on the call for inputs’ findings.
Marzia Zafar, deputy director of digitalisation and innovation at Ofgem, said: “Domestic DSR is about optimising the way we consume energy, so it works best for a decarbonised energy system and consumers. The key to unlocking high consumer uptake is making it both attractive and easy to participate in.
“It is not Ofgem’s role to specify what this domestic DSR journey should look like, but it is important that it is not left to chance. Therefore, as the regulator we are seeking input from a wide range of stakeholders including those working in industry, the providers of smart home and transport assets, consumer representatives and other parties interested in flexibility.
“This will help build a shared vision of what the emerging domestic DSR customer journey should look like and how to make that vision a reality.”
