Aggregator Enernoc was awarded contracts worth £3.9m in the capacity market auction specifically for turn down demand-side response (DSR). The aggregator took 86.88MW of 312MW derated capacity procured at £45/kW, roughly 28% of the total.
Nine other firms were successful in their bids in the final Transitional Arrangements (TA) capacity auction for delivery next winter.
Fellow aggregator Kiwi Power took the next biggest share with 60MW, worth £2.7m. Eon took 36MW, worth £1.6m; Tata Steel won 35MW (£1.58M);Aggregator and licensed energy supplier Smartest Energy landed 34.752MW (£1.56m); industrial gases firm BOC took 19MW (£855k); Limejump, another aggregator with a supply licence, won 17.508MW (£788k); UK Power Reserve was awarded 10MW (£450k); EDF was successful with 8.687MW (£390k), and Energy Pool UK won contracts for 4.344MW, worth £195k.
Some 88% of the capacity (275MW) procured is for new capacity, classified as unproven DSR, with the remaining 37MW procured proven DSR.
In total 372.987MW derated capacity was prequalified for the auction, meaning that roughly 60MW failed to secure a contract. These were two capacity market units from Smartest Energy and one from Energy Pool UK.
See the full provisional results here.
Free demand-side response report
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Asking businesses to reduce consumption during peak demand is a far more cost-effective and cleaner solution than paying fossil fuel plant to switch on or generate more. Securing a strong price in this auction will send a strong message to the market that business’ participation is valued, bringing forward more volume from organisations and strengthening future DSR schemes.
UK Power Reserve’s 823MW portfolio includes new build fast ramping gas-fired generation and 120MW of battery storage. We are continuing to build our portfolio via the UK’s capacity mechanism and look forward to working with new clients to manage their demand turn down via our existing partnership with Total Gas & Power. We see DSR and storage as critical components of a smart and flexible future energy system. We urge policy makers to be consistent in their support for small players like UKPR which are providing healthy competition to the Big Six incumbents resisting the creation of a decentralised system which works for consumers.
UKPR Chief Executive Tim Emrich