Electricity Demand Reduction (EDR) Pilot hoping to help electricity demand at peak times

August 18, 2014 12:50 pm

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The EDR pilot allows organisations to bid for financial support to install more efficient equipment which reduces their electricity demand at peak times.

The EDR pilot scheme will provide organisations with financial support to install more efficient electrical equipment which reduces their peak electricity demand.  This scheme helps test whether projects that deliver lasting electricity savings at peak times (in kW) – for example by replacing old bulbs with LEDs or improving motors and pumps – could in future compete with generation, demand side response (DSR) and storage in the forthcoming GB Capacity Market.
Organisations that register, and whose projects qualify, will be invited to take part in a competitive auction. Participants can bid in kW savings from projects they plan. The winning bids will be those that represent best value for money (i.e. the lowest price for each kW offered) up to the total budget available in the auction. Successful bidders will receive payments once savings are delivered and evidence received.
The first EDR Pilot auction is for a total of £10 million and is being held in January 2015. Subject to the outcome a further auction may follow. The total budget for the EDR Pilot is at least £20 million.

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