Demand response (DR)
In order to lower the electricity prices growth rate and improve energy infrastructure reliability, the Government of the Russian Federation issued a Decree No. 287 dated March 20, 2019 providing introduction of a new system service for the electric energy market – management of electricity (power) demand, which is provided by electricity consumers themselves through a specialized organization – Demand Response aggregator (see Fig. 1).
Fig. 1. Scheme of interaction between electric power market participants in terms of demand response services
This service consists of reducing the capacity consumed by customer's electrical installations by System Operator's (SO UES) command. The command arrives a day before the due date of its execution, including specific hours for unloading. In total, the number of SO UES commands does not exceed five times a month, and the time interval for reducing the load is 2 or 4 hours. Penalties for non-performance of services are currently not provided.
Based on the results of the competitive process, SO UES selects consumers ready to provide these services on a quarterly basis. On service completion, SO UES pays the Aggregator the cost of the service at a price established by the results of the competitive selection (up to RUB 800,000/MW of reduced capacity consumption per month (1)). Accordingly, the Aggregator pays the consumer for the service as per the price of the contract concluded between him and the consumer (2).
As a qualified Aggregator for SO UES, Atom Power IndustryTrade JSC offers companies to conclude profitable for them contracts aimed at reducing the electricity consumption load.
The companies not only receive additional income, but also contribute to the reduction of costs for the entire Russian power system by participating in the provision of demand response services in the electricity market.
Significant potential for reducing the load may lie both in process equipment capability to cut consumption for short time intervals (up to 4 hours) and in infrastructure processes at an enterprise, such as backup power generation facilities, industrial power storage systems, lighting, centralized compressed air supply systems, air conditioning, cooling, ventilation, water and heat supply, drying process technologies, electric heating and more.
The key condition for participating in the competitive selection for the provision of demand response service is the availability of interval commercial energy meters. To qualify, a company is required to present data on all commercial electric power meters at facilities claimed for participation in the provision of demand response services.
For additional information on this service and meeting arrangement please address the following contacts:
Head of Sales Department
Atom Power IndustryTrade JSC
+ 7 (495) 543 33 06 (ext. 2077)
(1) The maximum reduction price was approved by the Government Decree at the level of the forecast weighted average unregulated price on the Wholesale Electricity and Capacity Market (WECM). In 2020, this price is RUB 845,371/MW per month in WECM Pricing Zone 1, and RUB 672,294/MW per month in Pricing Zone 2.
(2) The Aggregator provides services of a qualified negotiator (Aggregator is an electric power engineering entity providing for the collection and transmission of data from metering devices, receiving/transmitting unloading commands from SO UES, conducting performance analysis, and generating recommendations on participation in demand response market events).