Leader: It’s time to step up the pace of change

It’s a year since National Grid launched its Power Responsive campaign, with the ambition to turn the growing debate about the value of demand-side response (DSR) into action. At the same time as it launched the initiative, the system operator set out its intention to use demand-side mechanisms to deliver 30-50 per cent of its balancing requirements by 2020.

Twelve months on, and the Power Responsive team has some positive news to share about the impact the campaign has had so far. It has brought together an inclusive steering group comprising aggregators, energy suppliers, distribution networks and more.

It has partnered with bodies such as the Major Energy Users’ Council to increase awareness and understanding about demand-side opportunities among industrial and commercial energy users. It has also launched two new DSR services – Enhanced Frequency Response, which will bring energy storage into play as a balancing mechanism, and Demand Turn-up, which will help avoid abatement of wind and solar energy at times of surplus generation.

But although these advances are welcome, and reflect real zeal in the Power Responsive team for proving the worth of DSR in future energy scenarios, it can’t be denied that some stubborn barriers to a more dynamic DSR market remain unmoved – or barely dented.

Despite some progress on awareness, many industrial and commercial customers are still ignorant or sceptical about DSR opportunities. To change this, market structures that offer truly attractive commercial propositions – and do not disrupt the day jobs of participating firms – should be devised for DSR.

The Power Responsive team is working on this, but even if it can come up with the magic formula (or formulas), applying it will be difficult without a more flexible and agile approach to market evolution in Decc and Ofgem. With a promised springtime call for evidence on both energy storage and DSR market reforms still pending, this is far from reality.

Utility Week is not the first and won’t be the last to say it, but until policymakers and regulators become more fleet of foot, the pace of change we need in the energy system – which technology and markets are naturally pushing towards – will not manifest itself.