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UK Power Networks (UKPN) is trialling demand response contracts with commercial customers in a London “test bed”.
The distribution network operator has signed up seven customers, including ExCeL exhibition centre, a high street retailer and a tourist attraction, to reduce demand when required in return for payments.
The trial is part of Low Carbon London (LCL), a £30 million scheme funded through Ofgem’s Low Carbon Networks Fund. It currently has 13MW under contract and UKPN said it was confident it would exceed its 24MW target before the trial ends in 2014.
Liam O’Sullivan, project director for LCL, said: “We are pleased that major organisations in our London test bed have welcomed the opportunity to generate revenue in return for helping us make better use of our network.”
Longer term, it is hoped demand response contracts will reduce the necessity of installing new cables and transformers to meet growing electricity demand.
This article first appeared in Utility Week’s print edition of 19th October 2012.
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