Organisations Benefit From UK’s First Ever Auction to Reduce Demand on Electricity

Organisations up and down the country have been awarded a total of £1.28m for capacity totalling 5,589kW as part of the UK’s first ever auction to reduce demand for electricity at peak times.

Overall, the pilot auction will help reduce demand by at least 1,855,548 kWh across the country during the winter peak. Organisations will reduce their demand in a number of ways, for example by changing their light bulbs to LED bulbs. A list of the successful organisations with the minimum amount of capacity they were offered contracts to save is provided below.

Energy and Climate Change Secretary, Ed Davey, said “We want to see if reducing demand on the electricity grid can be a cost-effective solution that will work alongside building new power stations – guaranteeing our energy security, cutting emissions and lowering energy bills.

“This auction is the first of its kind in Britain. If this goes well, demand reduction could compete alongside new generation in future capacity auctions, to help keep costs to consumers as low as possible.”

These organisations could compete in the Capacity Market in the future, reducing the need for extra electricity generation at peak times. This is typically during the winter when the evenings get darker quicker, so more electricity is being used as more lights are switched on in offices and at home.

The EDR Pilot Auction was held on Thursday 29 January 2015. The auction process was observed by an independent external monitor who verified the auction process and the results to be correct. A further auction is expected next year when more money will be available. 

Note:  The weighted average price bid in the auction £229/kW.

 

Lead organisation

Location(s)

Technology

kW savings offered

AnescoAggregator

Multiple sites across GB: Bridgend, Pyle, Telford

Lighting

104

Anesco - Aggregator

Multiple sites: Ponds Forge, Hillsborough

Lighting, pumps

107

AnescoAggregator

Multiple sites across GB

Lighting

137

AnescoAggregator

Multiple sites across GB: Cardiff, Thurrock, Brighton, Dudley,

Lighting

213

BAE Systems

Portsmouth

Lighting

110

British Heart Foundation

Multiple sites across GB

Lighting

531

Cheshire West and Chester Council

Cheshire West and Chester

Lighting

100

David Lloyd Leisure Group

Multiple sites across GB

Lighting

326

Dixons Retail PLC

Newark-on-Trent

Lighting

226

 

Halton Borough Council

Halton

Lighting

135

Hammerson UK Properties -

Multiple sites across GB: Birmingham

Lighting

823

London Borough of Havering

Havering

Lighting

214

Howarth Timber Group Ltd

Multiple sites across GB

Lighting

194

Leicestershire County Council

Leicestershire

Lighting

208

Network Rail

York Holgate; Multiple sites across GB

Lighting

365

North Tyneside Council

North Tyneside

Lighting

120

One Stop Stores Ltd

Multiple sites across GB

Lighting

198

Stadco Limited

Multiple sites across GB: Shrewsbury, Telford, Llanfyllin

Lighting

573

Tata Steel UK Ltd

Newport

Lighting

192

Tata Steel UK Ltd

Stocksbridge

Lighting

383

Winter Sports Network Ltd

Multiple sites across GB: Peterborough, Coventry,

Lighting

107

Wolseley UK Ltd

Leamington Spa

Lighting

223

TOTAL

5,589