The National Infrastructure Commission (NIC) has today published a report into how the UK can better balance the supply and demand of electricity. The Commission’s central finding is that “smart power” – principally built around interconnection, storage, and demand flexibility – could save UK consumers up to £8bn a year by 2030. This would help the UK meet its 2050 carbon targets, and improve its security of energy supply.
The NIC work draws on a recent Frontier Economics report for DECC which reviewed the wide variety of tools and techniques that can provide demand-side response (DSR). DSR refers to measures to adjust electricity demand at a particular point in time – for example, reducing peak demand to avoid costly investment in capacity.
Frontier’s latest bulletin provides a summary of the main issues in DSR, such as what the different types of DSR are, how these different types interact, and where some of the key uncertainties lie.
Frontier regularly advises clients on issues relating to the future development of the electricity markets.
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