Frequency Control by Demand Management (FCDM)

Transcription

1 Frequency Control by Demand Management (FCDM) Earn significant additional income by helping National Grid to balance supply and demand on the electricity network

2 Load management services from the specialists We currently manage 99% of the FCDM contracts on the market. Our expertise and experience can help you to maximise your income-earning potential through FCDM, with minimal impact on your business. Every business is unique, so at ENGIE we tailor our services to meet your individual requirements. We work closely with you to develop a strategy that optimises your earning potential from demand-side services, while minimising disruption to your business. We have been working with National Grid for more than ten years, so we are well placed to liaise with them on your behalf, and to manage the end-to-end process from tender submission and technical requirements training, through to payment validation and query resolution. Until recently, we were the sole supplier of FCDM services for National Grid, and we remain the largest provider of the service with a 99% market share and 120MW of FCDM load under management. In 2013/14, our customers collectively earned more than 1m by participating in the scheme. Participants have the potential to earn around 20,000 per MW per year. ENGIE is the leading specialist in the provision of demand-side load management services, and has been working closely with National Grid for more than ten years. 02

3 Benefits to your business Earn Significant income The principal benefit of FCDM participation is the significant income you can earn for your business. You will be paid a /MWh fee every time you make your load available for interruption. You will need to accurately forecast the load you can offer and ensure that this load is available for interruption at the stated times. You will be paid the availability fee whether or not your relays are tripped during the contracted period. The potential earnings are significant, and could be up to 20,000 per MW per year. Improve forecasting for greater efficiency It s important to forecast your loads accurately, to ensure you earn the full FCDM availability payment and avoid any penalties. ENGIE can help you to manage and predict your energy usage more effectively, to maximise your earning potential. Gaining a better understanding of your demand patterns can also help you to improve your energy management, operational efficiency and production output. Support renewable energy generation By taking part in FCDM you will be helping National Grid to keep supply and demand in balance. This essential service also helps to support the growth of renewable energy generation, such as wind power, by offering essential back-up at times when weather conditions cause output to drop. 03

4 What is FCDM? FCDM is a rapid-response service used by National Grid to help it maintain system frequency between 49.5Hz and 50.5Hz. Sudden and dramatic changes on the network, such as an unexpected increase in demand or a generation plant outage, can cause system frequency to fluctuate and drop below the desired 49.7Hz. FCDM providers are contracted to respond automatically in these situations to help restore the system frequency to within the acceptable range, by instantaneously shutting down part of their processes to reduce demand on the network. How does FCDM work? Low-frequency relays are installed on your site at agreed locations. These relays monitor second-by-second changes in system frequency and automatically trip if system frequency drops below an agreed threshold. When the relays are tripped, they shut down the part of your plant associated with that relay. FCDM participants agree the times during which their relays are armed and available for tripping, and are paid an availability fee for those periods. Businesses participating in the scheme can expect to have their supply interrupted between 12 and 20 times per year. 04 Frequency Control by Demand Management (FCDM)

5 Why is FCDM in demand now? Demand-side services are required by National Grid more than ever in today s energy marketplace. The reasons include: RETIRING CAPACITY The Large Combustion Plant Directive (LCPD) has seen a number of traditional generating units close. EU DIRECTIVES The EU 2020 Renewables target has encouraged growth in wind generation, with nearly 30GW expected online by FINITE NATURAL RESOURCES UK energy supply is currently reliant on diminishing fossil fuels. FORECASTING ABILITY Wind power plants (as with other renewable energy technologies) can stop generating suddenly when the wind stops blowing, or is too strong to operate turbines safely. POLITICAL CLIMATE Increasing capacity from interconnectors, which could be vulnerable to dramatic political changes. Businesses in the following sectors may be particularly suited to FCDM REFRIGERATION CEMENT & AGGREGATES WATER COMPANIES CHEMICAL MANUFACTURING RETAIL DATA CENTRES FOOD AND DRINK INDUSTRIAL GAS MANUFACTURING 05

6 Can you participate? Businesses that operate non-critical processes which can be interrupted instantaneously without significant impact on productivity or safety are ideal FCDM participants. During times when the FCDM relays are armed, your processes could be switched off without warning at any time. Your processes need to be able to cope with supply interruption for a minimum of 30 minutes. Businesses need to be able to offer a minimum of 3MW of load for interruption. Processes suitable for unexpected supply interruption include: INDUSTRIAL PROCESSES The production patterns of some industrial processes mean they are suitable for interruption. Examples include cement mills, crushers, liquefiers, compressors, industrial fans (e.g. cooling/extraction). HVAC Heating, ventilation and air-conditioning systems can be made smart to respond instantly to fluctuations in supply and demand. PUMPED LOADS Hydraulic inertia allows pumps to repond instantly to frequency signals. 06 Frequency Control by Demand Management (FCDM)

7 Eight simple steps to FCDM participation INITIAL CONVERSATION To discuss suitability and product options - get in touch with us on or by ing energyservices.team@engie.com SITE VISIT To determine technical requirements, installation and implementation strategy, and assess your site for viability. ARRANGE FRAMEWORK AGREEMENT Discuss terms and obligations. EQUIPMENT INSTALLATION AND TESTING Specialist engineers install all necessary equipment, provide training and thoroughly test equipment to confirm metering and communications are in place. CONTRACT NEGOTIATION We will manage your relationship with National Grid, providing market analysis, advice and monitoring to maximise potential revenue from FCDM. SERVICE DELIVERY Availability declarations submitted as necessary. ENGIE will monitor performance and liaise with you to ensure you maximise the benefits of FCDM. INVOICING AND SETTLEMENT ENGIE acts as intermediary between you and National Grid, ensuring all payments are in line with performance and delivery. QUERY RESOLUTION Any queries or disputes will be fully managed on your behalf by ENGIE. 07

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