Electricity demand during the winter peak will be cut by 1,855,548kWh, following the completion of the UK’s first electricity demand reduction (EDR) pilot auction.
In total, 22 individual projects successfully bidded in the auction, with the weighted average price bid in the auction coming out at £229/kW. Successful organisations include, Network Rail, Leicestershire County Council, Tata Steel and David Lloyd Leisure Group among others. In total, £1.28 million was allocated during the auction.
Every single one of the successful projects committed to reducing its lighting demand in order to cut its consumption, most likely through upgrading existing lighting to LED.
Commenting on the completion of the pilot auction, energy and climate change secretary, Ed Davey said: “We want to see if reducing demand on the electricity grid can be a cost-effective solution that will work alongside building new power stations – guaranteeing our energy security, cutting emissions and lowering energy bills.
“This auction is the first of its kind in Britain. If this goes well, demand reduction could compete alongside new generation in future capacity auctions, to help keep costs to consumers as low as possible.”
The Department of Energy and Climate Change (DECC) states that companies could compete in the Capacity Market auctions in the future. The department intends to hold another auction round next year when new funding will be available.
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