Energy: Prices

(asked on 12th June 2014) - View Source

Question

To ask the Secretary of State for Energy and Climate Change, what assessment he has made of the proportion of the Demand Side Balancing Reserve that will comprise of active demand reduction rather than switching on generation assets.


Answered by
Michael Fallon Portrait
Michael Fallon
This question was answered on 18th June 2014

The Demand Side Balancing Reserve is operated by National Grid independently from Government. Once National Grid has concluded the procurement of the reserve in the autumn it will be possible to identify the proportion of the reserve that comprises ‘load reduction' rather than the export of additional generation onto the grid (though initial expressions of interest to National Grid suggest that around 75% of the reserve may be provided by load reduction). However, it will not be possible to determine whether this load reduction is achieved through a reduction in demand, or by turning on local back up generation to meet local needs.

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