EDR – Electricity Reduction Pilot Update
In June, we looked at the introduction of theÂ government led initiative where organisations could receive financial support for the implementation of energy efficient projects through the Electricity Demand Reduction Pilot (EDR). This was all part of trialing and assessing the viability of energy efficiency as a player in the capacity industry, thus competing with alternatives of generation and demand response.
We have now entered Phase II of the scheme and it has brought up several updates from Phase I. These updates have been implemented in order to open up the EDR scheme to a wider number of applicants; to increase participation and the potential for more demand savings. The Phase II changes include a reduced minimum demand savings threshold of 50 kW over the peak period, reduced evidence requirements and a greater flexibility around the dates for providing baseline data and the period for delivering kW demand savings.
Central toÂ EDR pilot is the ability to accurately quantify the demand savings delivered by each applicant. i.e. How are these Energy Savings measured? This is very important because of the need to to assess what payments each applicant should receive but also as a means of understanding the total savings that have been achieved via the pilot and whether Electricity Demand Reduction can indeed form a viable means of freeing up capacity in the national grid.
What Has Happened So Far
All organisations who wanted to join the scheme did so on the 3rd September. M&V plans with supporting evidence have also been submitted by organisations who wish to get early feedback on the applications. Closing date was 17th September 2015.
Remaining Time Structure of the Pilot Scheme
- Full applications need to be submitted by 15 October 2015.
- The auction will take place on 21 January 2016 (OrganisationsÂ that submit qualifying applications will then compete for funding with other organisations in an auction – with winners determined by those who offer peak savings at the lowest price (Â£/kW). Payments to successful bidders will be made once delivery targets have been met).
- Winners who have signed a participant agreement will need to install measures within 8 months (by 30 September 2016) or 20 months (30 September 2017), delivering contracted savings during the Winter Peak period 2016/2017 or 2017/2018. Winter peak period is the four month period from the start of November to the end of February, between 4pm and 8pm each working day.
For more information on this great pilot that theÂ Department of Energy & Climate Change are introducing please visit the following link: