National Grid has cancelled its Demand Side Balancing Reserve (DSBR) tender for the coming winter.
In a letter, the grid operator said it made the decision following the results of the tender which closed in June and showed it was not successful, adding “minimal volume would be available across this period”.
It stated: “DSBR was designed for those consumers that don’t already reduce/shift demand or run embedded generation during peak times in response to pricing signals and despite National Grid amending the DSBR service via a consultation in September 2015 to encourage participation over the peak, it is clear this has not been successful.”
It added the decision was made using all relevant information available and following detailed analysis of volume over peak, giving appropriate consideration to the cost and expected benefit of DSBR and the licence requirement to procure services on an economic and efficient basis.
National Grid will work with DSBR providers capable of offering reserve across the peak in order to understand if “alternative delivery routes” can be developed for this winter.
The letter went on: “We understand from speaking with the DSBR providers that there are certain elements of the service that are particularly valued by the DSR community; we welcome this feedback and will ensure learning from previous DSBR procurement exercises is applied to future service development.”