Energy Live 2016
Flexibility = Consumer Control
David Hill, Open Energi
Steffan Eldred, Tarmac
@openenergi
Introduction | Gartner Hype Cycle
Trends | The Need for Flexibility
*Source: National Audit Office
Trends | Cost of Balancing
£0
£100,000,000
£200,000,000
£300,000,000
£400,000,000
£500,000,000
£600,000,000
£700,000,000
£800,000,000
£900,000,000
£1,000,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Reactive Power Commercial Freq Resp
Mandatory Freq Resp Non-Tendered Fast Reserve
Tendered Fast Reserve STOR
Other Black Start
Non-BM Constraint BM Constraints
*Source: BSouS Cost Breakdown
Trends | Peak Prices
Peak prices to increase by 48% over the next 5 years
Market | Complex
Assets | Where to start?
CHPBatteries Back-up Diesel
RefrigerationWater Pumps
Bitumen Tanks
HVAC
Sewage Aeration
Anaerobic digestionSmelting Pots
EV Charging
Technology Simplifies
Market | Market Diagram
Capacity Markets
Dynamic
Frequency Markets
Capacity Market
Demand Charges
TRIAD
DUoS
CM Levy
Arbitrage
N2EX/Nordpool
Imbalance Market
Assets | Merit Order of Flexibility
Assets | Merit Order of Flexibility
Building Value | Flexibility Optimisation
Building Value | Flexibility Optimisation
TOTAL COST = £162.35
Building Value | Flexibility Optimisation
Low Availability
High Availability
TOTAL COST = £137.04
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Optimised Hot Water Demand
Total Cost of Power Pre Optimised Demand Optimised Demand
Building Value | Flexibility Optimisation
TOTAL COST = £76.88
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Optimised Hot Water Demand
Total Cost of Power Imbalance Prices Pre Optimised Demand Optimised Demand
Building Value | Flexibility Optimisation
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Optimised Hot Water Demand
Total Cost of Power Imbalance Prices Pre Optimised Demand Optimised Demand Full Optimisation
Building Value | Flexibility Optimisation
TOTAL COST = £64.07
Our DSR journey
Tarmac involved with Demand Side Response for a number of
years on some larger assets.
Open Energi’s Dynamic Demand technology offered energy and
cost saving opportunities, but:
• was it too good to be true?
• what impact would it have on our operations?
• how much did it cost to install?
We trialled the technology on 3 sites before embarking on a full roll
out to demonstrate it:
• would help us to manage our energy demand more smartly
• would support our delivery of carbon reduction targets
• could be safely installed with minimal disruption to our
operations
Our strategy and approach
Where are we up to now?
• Rollout programme ran through out 2015
and was completed in Spring 2016
• Around 70 asphalt plants across our
portfolio now have Dynamic Demand
installations
• Over 200 individual tank installations
• Delivering significant high availability
• Additional opportunities around tank
control and maintenance
• Minimal operational impact once
installed
What is the future looking like?
• Identifying other equipment
• Aiming to release more
capacity for the grid
• Increase its support for our
carbon and energy targets
• Enabling others to follow suit
and showing proof of market
appetite for demand-side
management via Living Grid
.
UK Head Office
Lincoln House
300 High Holborn
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+44 (0)20 3051 0600
www.openenergi.com