Unlocking Demand Contribution to Distribution Network Management Dr Chris Horne, CEng, MIEEE, FIET Head of Energy Infrastructure and End Use E.ON New Build and Technology

Impact on Distribution TODAY 2020+ Decarbonisation Smart grids Electric vehicles Electric heating Demand led Generation led Unabated fossil fuel Ageing plant Small nuclear LCPD Renewable generation CCS Large nuclear Distributed generation Impact on Distribution Policy support Concern over climate change is prompting a major policy change We are moving from demand led to generation led “We currently flex generation to meet demand; we now need to also flex demand to meet generation.“ (National Grid, 2009)

Demand Side Management energy efficiency Demand Side Management energy conservation Demand Response Flexible Demand DSM comprises 3 elements: energy efficiency: using less energy to achieve the same objective (e.g. efficient appliances, insulation) energy conservation: reducing energy consumption by electing not to perform some energy consuming tasks (e.g. behavioural change) demand response: shifting energy time-of-use to increase system efficiency FD is a subset of DR DR does not affect the absolute load level It affects load shape and only over the short term (mins to hours) DR does not require smart grids or smart homes, BUT it does complement them FD is a complement to other technologies

E.ON - Networks of the Future Significant installation of PV in LV/MV distribution network E.ON Bayern>3500MW peak on a sunny day Continued future growth of PV and mCHP Issues with reverse power flows and voltage profiles R&D Focus on Demand Response Distributed battery energy storage Active load management Part of a “tool box” of smart grid activities

Demonstrating Flexible Demand UK Government Funded Investigating complexities of distributed / aggregated demand response Systems with inherent energy storage – GSHP / HVAC Delivering response with no discernible impact on end user Significant potential flexible response – focus on short term response Challenge is delivering value across different parts of the value chain and finding market mechanisms to reward participation

Conclusions Demand contribution has a significant role to play in future distribution networks Issues are already being experienced by DNO’s There is a difference between load shifting and ancillary service response Market mechanisms need to be developed to deliver full potential of demand side participation