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Demand response (DR)

In order to reduce the growth rate of electricity prices and improve the reliability of energy infrastructure, the Decree of the Government of the Russian Federation dated March 20, 2019 No. 287 provides for the introduction of a new system service on the electricity market - electricity demand (capacity) management, which is provided by electricity consumers themselves through a specialized organization - Demand Management Service Aggregator (hereinafter - Aggregator) (see Fig. 1).

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Fig. 1. Scheme of interaction between electric power market participants in terms of demand response services

This service implies the reduction of power consumed by the consumer's electrical installations at the command of the System Operator (hereinafter referred to as the UES SO). The command is received a day before the required date of its fulfillment with indication of specific hours of load shedding. The total number of the UES SO's commands does not exceed 5 times per month, and the time interval for load reduction is 2 or 4 hours. No penalties for non-performance of the service are currently envisaged.

The UES SO selects the consumers willing to provide these services on a quarterly basis following the results of the bidding procedure. Based on the results of the service performance, the UES SO pays to the Aggregator the cost of the service at the price formed according to the results of the competitive selection. The Aggregator, accordingly, pays the service to the consumer at the price of the contract concluded by it and the consumer.

Atom Power Industry Trade JSC, as a qualified Aggregator for the UES SO, offers enterprises to conclude contracts for the provision of electricity consumption load reduction services that are profitable for them.

By participating in the provision of demand management services on the electricity market, enterprises not only receive additional income, but also contribute to reducing the cost of expenses for the entire Russian energy system. Significant load reduction potential may lie both in the capabilities of process equipment to reduce consumption for short time intervals (up to 4 hours) and in the infrastructural processes at the enterprise: backup power generation facilities, industrial electricity storage, lighting, centralized compressed air supply systems, air conditioning, cooling, ventilation, water and heat supply, processes of drying, electric heating, etc. The main condition for participation in the competitive selection for the provision of demand management service is the availability of interval commercial metering devices. In order for a facility to qualify, data is required on all commercial metering devices at the facilities applying to participate in the demand management service.