This 14th September Eversheds hosted jointly with EEVS (Energy Efficiency Verification Specialist) a breakfast seminar on the Phase II of DECC´s Electricity Demand Reduction Pilot.

The seminar included presentations from Gary Shanahan, Head of Electricity Demand Reduction Strategy, Engagement and Evaluation at the Department of Energy and Climate Change, Alex Rathmell, Managing Director, Hillary Wood, Operations Director, and Amy Hill, Energy Analyst from EEVS and Jean-Pascal Boutin, Partner at Eversheds.

The debate brought attendees up-to-speed on the Government’s Electricity Demand Reduction pilot which looks to trial and assess the viability of energy efficiency as a player in the capacity market – competing with alternatives of generation and demand response.

Phase II of the pilot has introduced several updates from Phase I to open up the EDR scheme to a wider number of applicants and to increase participation and the potential for demand savings. These include a reduced minimum demand savings threshold of 50 kW over the peak period, reduced evidence requirements and greater flexibility around the dates for providing baseline data and the period for delivering kW demand savings.

A critical focus of the discussion was the importance of Proof of Performance and identification of delivered savings using the robust process of Measurement and Verification (M&V). Crucial to the EDR pilot is the ability to accurately quantify the demand savings delivered by applicants, not only because of the need to assess what payments they should receive but as a means of understanding the total savings that have been delivered through the pilot and whether EDR can indeed form a viable means of freeing up capacity in the grid.