U.K. plans payment for "negawatt" to curb power use

By Catherine Airlie - Dec 7, 2010 5:53

The U.K. will propose paying big power consumers to use less during peak demand periods as part of a plan to overhaul the electricity market due to be drafted by Christmas, Minister of State for Energy Charles Hendry said.

The government may pay major users for each “negawatt” of capacity they switch off, Hendry said in an interview in London yesterday. The proposals, which may form a draft bill for submission to parliament in spring, may also include so-called capacity payments for generators who supply the grid.

The payments both for keeping the grid supplied and switching off when use is high are meant to balance supply and demand as Britain seeks to attract investors and meet targets for reducing carbon emissions. The rules are part of measures that may bring about the biggest change in the market in 30 years, Hendry told delegates at an event hosted by the Major Energy Users Council.

“We’re looking at capacity payment to take demand out of the system,” Hendry said in the interview at the event. “What is the best way to manage demand? Either provide physical supply or shave demand.”

U.K. utilities need to spend 200 billion pounds this decade to upgrade infrastructure and replace stations to meet climate- change targets, according to U.K. regulator Ofgem. Electricity costs are set to rise as about a third of Britain’s power plants shut and are replaced by more costly nuclear and renewable generation.

“There has never been a better time for demand side participation to contribute to our energy policy goals” said Graham Meeks, director of the Combined Heat & Power Association, whose members include E.ON U.K., RWE npower, and British Sugar. “With the enormous cost of new generating capacity, the value of energy savings and flexible action by energy consumers is considerable.”

http://www.bloomberg.com/news/2010-12-07/u-k-plans-payment-for-negawatt-to-curb-power-use-update1-.html

ECMweb.com

In-Home Monitors Help Customers Save Energy

A pilot program by Seattle City Light, a Seattle-based publicly owned utility, found encouraging results on the effectiveness of in-home energy monitoring displays for helping people conserve energy, the company has reported. In a pilot program the 24 randomly selected participants reduced their electricity consumption by an average of 3%, or 340kWh, over the eight month test. That adds up to nearly $22 in savings. Some saved much more, with the biggest reduction of 4,174kWh, or nearly 20%, which cut the customer’s bills by about $267 during the test period.

“In-home energy-monitoring displays can be an effective tool for those motivated to get the most out of them,” says Lars Henrikson, the energy planning analyst who ran the pilot. “We’re continuing to monitor our test group and to see how their electricity use continues over time.”

City Light plans to expand the pilot through its Neighborhood Power Project in early fall. Annually, the utility focuses on a neighborhood area in its service territory to promote energy saving programs and services and to provide energy education. In-home monitors will provide additional energy-saving opportunities for residents who are looking for more ways to conserve.

The energy monitors read a customer’s electricity meter and display the usage in real time, including the cost of that usage. Recognizing how much energy they use and what it’s costing them can motivate people to be more energy efficient.

http://ecmweb.com/ezone/home-energy-usage-monitors-20090910/

CON EDISON SEEKING COMPANIES TO HELP CUSTOMERS REDUCE ELECTRIC USAGE

NEW YORK – Consolidated Edison Company of New York, Inc. (Con Edison) yesterday issued a Request For Proposal (RFP) soliciting applications from qualified parties to supply the company with new demand side management (DSM) resources to be delivered in targeted areas of New York City and Westchester County.

The company is forecasting increased power use throughout its service area. At the same time, energy use in certain neighborhoods is projected to increase at a faster pace than in others. This growth results in the need for electric-delivery-system upgrades in those communities. As part of Con Edison’s effort to effectively manage this growth, the RFP seeks savings of approximately 158 megawatts in 10 neighborhoods over a multi-year period beginning in 2010.

Customers could see savings by installing DSM resources such as energy-efficient lighting, air conditioning, refrigeration, motors, clean distributed generation, and steam air conditioning. Residential and commercial customers may qualify, and there may be financial incentives to customers to help offset installation costs.

Qualifying proposals will be evaluated based on the proposed price, technical and financial qualifications of the respondents, and proposed implementation program.

To obtain a copy of the RFP and the DSM Agreement visit:

http://www.coned.com/sales/business/targetedRFP2007.asp.

Con Edison is a subsidiary of Consolidated Edison Inc, [NYSE: ED], one of the nation's largest investor-owned energy companies, with approximately $12 billion in annual revenues and $27 billion in assets. The utility provides electric, gas and steam service to more than 3 million customers in New York City and Westchester County, New York. For additional financial, operations and customer service information, visit Con Edison's Web site at www.conEd.com.

http://www.coned.com/sales/forms/DSM%20RFP%20Targeted%202007.pdf