Demand Side Integration An overview of initiatives promoted by RTE Gérald Vignal RTE/Market Design Department

Agenda Focus on 3 initiatives : Industrial customers load management Distributed load shedding Ecowatt A few words about french legislative evolutions

General position on Demand Response When promoting Demand Response, RTE focuses on power reduction (versus energy) As energy efficiency remains in the scope of suppliers As RTE mission is to balance the system in real time First experiments have been launched in 2008 To assess efficiency and potential development of DR The main issue (in the hands of RTE) to ease the development of Demand Response is to adapt the market design Through concertation with all shareholders, with the regulator and with the ministry.

Industrial load shedding (1/2) Principles : a fixed price to ensure the availability of demand response + the amount bidded on balancing mechanism are paid to industrial consumers Balancing perimeter is corrected of the shedded energy in order to not penalize the balance responsible of whom the industrial customer is linked Balancing perimeter Correction of load curve of the shedded consumer

Industrial load shedding (2/2) First experimentation launched in 2008 for one year : 100 MW for approx 1 M€ of fix price Cost covered by balance responsible account 6 customers participated A second experimentation in 2009 roughly the same volumes New players (agregators) Ongoing discussions with all the actors and the regulators to prepare the next contracting

Distributed load shedding Principles : a player aggregates a number of individual consumptions and activates load shedding through «  boxes » installed on consumers premices The aggregator proposes offers on the balancing mechanism (the minimum threshold is 10 MW). If the price of the offer is lower than the marginal price, the offer is actived by RTE and the aggegrator send a signal to the energy boxes to shed the load of residential customers. Tested in France with probationary rules, approved by French regulator Experimentation until june 30th 2010 Participants (in the CURTE) elaborate steady rules and they will then be submit to the regulator

Ecowatt (1/2) => Security of supply is theratened during peak loads A specific local context Generation in Brittany covers only 7 % of consumption Consumption still grows Network structure is fragile => Security of supply is theratened during peak loads (Similar situation on the riviera)

Ecowatt (2/2) Based on volontary reduction of consumption by domestic customers during peak loads Presented as complementary to network reinforcement and generation development Development of a web site providing day ahead alerts and advices to reduce consumption Possibility for people to subscribe and recieve alerts by SMS Partnership and media relays

Actual legislative evolutions The NOME Law is currently under discussion by the french parliament In particular, article 2 of actual law project : creation of capacity market in France - in the US, developpement of DR deeply linked with capacity markets - an economic space for curtailments