Industrial & Commercial demand-side response in GB: barriers and potential
Reports, plans and updates
- Publication date
- Industry sector
- Supply and Retail Market
- Distribution Network
- Transmission Network
- Generation and Wholesale Market
As Great Britain decarbonises, industrial and commercial (I&C) consumers should be able to offer their flexibility with no barriers in the way. This flexibility that I&C consumers can provide typically is a process called demand-side response (DSR), where customers respond to a signal to alter, or shift, the amount of energy they draw from the grid, at a specific time, in order to make savings on their electricity costs (through direct payments or reduced bills).
Using DSR can support security of supply, contribute to sustainable development and make electricity more affordable. Many I&C customers engage in DSR via aggregators – organisations that coordinate consumers’ flexibility (demand or generation) to offer it where it is needed.
As part of our flexibility programme, we are finding out which areas might benefit from flexibility and how we can support this transition. Two of the programme’s current areas of focus are:
- exploring whether there is a rationale for regulatory involvement to support more large I&C consumers to provide DSR; and
- clarifying the role of aggregators and their relationship with other electricity industry parties.
This report presents our initial analysis of the responses, which we are keen to share with stakeholders in advance of the CfE. Alongside this report, we have published the quantitative I&C consumer survey responses in an aggregated and anonymised form to allow stakeholders to perform their own analysis to better understand the state of I&C DSR.
We will conduct further analysis of the surveys alongside responses to the forthcoming Call for Evidence (CfE) on a smart, flexible energy system. The CfE will seek a greater diversity of respondents and on a wider range of topics, giving us a fuller understanding of the issues and in a broader context. The evidence gathered from the surveys and CfE will help inform our subsequent route map with BEIS.
In the meantime, we will use the survey results to inform our ongoing work in this area, including our involvement on the Power Responsive Steering Group.
If you would like to discuss any aspect of this report please contact Flexibility@ofgem.gov.uk.