The National Grid has announced that it has cancelled Demand Side Balancing Reserve (DSBR) for winter 2016.
The National Grid has decided to cancel Demand Side Balancing Reserve (DSBR) for the winter 2016 period as it was confirmed that minimal volume would be available at that time.
The DSBR service was amended last September to encourage participation but the Grid stated "it is clear this has not been successful."
This news is in stark contrast to the Grid's stance last year when the Head of Commercial Operations stated that demand measures would be used to meet over 50% of the nation's balancing requirements by 2030.
However, the National Grid has reiterated its commitment to developing demand side response and its Power Responsive campaign which aims to encourage innovation in the sector.
A statement on the National Grid website reads: "Our decision not to procure DSBR for 2016/17 has been made using all relevant information available to us at the time and following detailed analysis of volume over peak; giving appropriate consideration to the cost and expected benefit of DSBR and our licence requirement to procure services on an economic and efficient basis."
Under the Supplemental Balancing Reserve (SBR), the National Grid purchased a number of large-scale generation units which were intended to provide adequate backup power this winter. Instead, this back up power is likely to be sourced via the Capacity Market.