The document outlines the concept of Demand Side Response (DSR) as a crucial mechanism for balancing electricity supply and demand, highlighting its importance amidst changes in the energy system. E.ON's initiatives in DSR aim to match flexible energy users with the needs of the grid, offering benefits such as potential cost savings and increased reliability for participants. Customers can engage in DSR by adjusting their energy consumption and are projected to earn significant financial benefits over the coming years.

1. Optimise your energy use
with Demand Side
Response
John Walsh
Senior Strategic Account Manager

2. Agenda
1. What is Demand Side Response (DSR), how does it work and why is it important?
2. What is E.ON doing with DSR?
3. The benefits of DSR to participants
4. How can businesses get involved?
5. What can you expect to earn?
6. Next steps for you

3. Dramatic changes are happening in the
energy system

4. What is Demand Side
Response (DSR)?
“Demand side” can be broadly defined as any
flexible load or generation connected to the
distribution network.
“Response” is a deliberate modification in electricity
consumption or generation in response to an
external signal.
“As we stand at a critical crossroads, National Grid
believe that DSR has a vital role to play”
Cordi O’Hara, Director of National Grid
07.04.2017 4

5. Some in the electricity
system have flexibility
Small on-site power plants
Commercial HVAC demand
Batteries
Industrial process demand
Electric vehicles
Registration and heat pumps
Renewable assets

6. Some in the electricity system need
flexibility
National Grid need to keep the grid balanced at all
times.
Suppliers need to keep their portfolio balanced to
avoid paying imbalance prices.
End users need to make the most out of their
assets and lower net energy spend.
DNOs increasing looking to flexibility at the
distribution level.
Energy markets need additional volumes to
efficiently balance supply and demand.

7. Virtual Power Plant (VPP)
Matching
VPP
National
Grid
Suppliers
End-
users
DNOs
Energy
markets
E.ON’s VPP matches
providers of flexibility
with those who need it
to make the overall
system more efficient.

8. How does Demand
Side Response
work?

9. National Grid
Frequency 50 Hz
Supply Demand
Supply = Demand
Balanced grid
How does Demand Side
Response work?

10. How does Demand Side
Response work?
In an electricity system, the production of power (supply) must always exactly match the usage (demand)
Supply < Demand
Frequency falls below 50Hz
Supply > Demand
Frequency rises above 50Hz
Flexibility required
 Increase supply
 Decrease demand
Flexibility required
 Decrease supply
 Increase demand

11. How can customers deliver
DSR?
For a reliable electricity system, the supply must always match the demand.
Businesses and public sector organisations can change their electricity
demand in three ways:
Turning down the use of electricity
Changing when they use electricity
Turning on or increasing production from on-site generation
Businesses can also increase their electricity demand at certain times, for
example on windy or sunny days when demand is low but renewable output is
high.

12. Core markets available for a DSR solution

13. Reducing net energy spend and higher savings from new revenues
DSR may maximise additional revenue and savings from existing infrastructure, giving you more
control over energy spend.
Future proofing and innovation
Proactively benefit from savings today, and by being more flexible you may avoid extreme peaks
in future energy prices.
Improve your Corporate Social Responsibility and help keep the lights on
Help to reduce the need for traditional power plants and enable more renewable generation,
while supporting security of supply.
Efficient use of capital
Little or no investment required from your side into non-core energy infrastructure projects.
The benefits to customers of
participating in DSR

14. Bespoke Solution
We work with you to understand your technical requirements and find a bespoke flexibility
solution to maximise DSR value while respecting constraints
Improved Reliability
Customer feedback found that through period DSR activations, reliability of customer assets
improved
24/7 Monitoring
Monitoring and optimisation through E.ONs Virtual Power Plant
Monitor Anywhere
Keep track of what’s happening on a computer or mobile device at any time with our customer
platform.
The benefits to customers of
participating in DSR

15. 2MW back-up generator
£100,000 ~£50k/MW* net customer financial benefit
Assumptions
3 minute ramp rate (so not suitable for FFR)
Approximately 60 activations per year
£20k closing price for Capacity Market DSR
Benefits from TRIADs and STOR in scope
Fuel cost is largely offset by reduced import during peak periods
*These values are based on current market rates for the different
DSR Services and an assumed marketing strategy. The projection is
based on a fairly conservative base case.
What can you expect
to earn?

16. What have we helped
our customers save?
So far in 2017, E.ON have helped our customers to generate
additional revenue and savings of around £1.37m
This figure is expected to increase to £4.3m of revenue and
savings for our customers in 2018 and £8.1m in 2019

17. Would you be a suitable
customer for DSR?
Are you an energy intensive consumer?
Do you have generation on site?
If you answered yes to either of these then you would be
suitable.

18. Find out more at eonenergy.com/solutions or call 0330 400 1102
or find us on LinkedIn
Thank you