Centrica to sandbox trial storage heaters for demand side response

The trial using UK balancing and code administrator Elexon’s sandbox will involve up to 2.5MW of storage heating capacity.

The trial, the second to use Elexon’s Balancing and Settlement Code sandbox, will involve Centrica participating in the balancing mechanism as an independent aggregator.

In partnership with the electrical goods company Glen Dimplex, the trial will initially bring forward a maximum of 2.5MW of storage heater assets in social housing across sites which have non half-hourly boundary meters.

Boundary meters are used at boundary points where sites, including those that are complex and have multiple uses, connect to a distribution network. These meters measure electricity flows to and from assets on these sites.

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The balancing and settlement code rules currently require that a site is settled half-hourly in order for an aggregator to operate assets located there. However, the derogation from the rules the sandbox enables will allow Centrica to submit information into settlement stating when storage heaters have reduced their demand, as if the site had been settled half-hourly at the boundary meter.

They will do this by using data from meters in the storage heaters to provide half-hourly data in lieu of data from the boundary meter.

Elexon will ensure that the electricity volumes resulting from reduced demand from the heaters are properly validated.

“Our sandbox service is playing an important role in the move to a smarter energy system by giving innovators opportunities to test new concepts,” says Simon McCalla, Elexon’s Chief Executive.

“We believe that demand side response will play a big part in the transition to a cleaner, more efficient energy system and we are pleased that the balancing and settlement code can support a trial which offers new ways for customers to participate in the balancing market.”

From 2023, market-wide half hourly settlement implementation will require that electricity generation and use by customers with half-hourly capable boundary meters at their sites are settled using half-hourly readings.

The upgrading of boundary meters to achieve this will run through until 2025.

Centrica believes that it can deliver material benefits to consumers participating in the trial during this two-year window, according to a statement. These could include reduced tariffs or other benefits such as rent subsidies for customers who are in vulnerable circumstances and also living in social housing.

For its part, Elexon believes that the trial will benefit the energy system as a whole by reducing the costs of system balancing and creating more competition in the provision of services.