Ofgem has announced that National Grid will be allocated an extra £4.5m to implement Demand Side Balancing Reserve (DSBR) and Strategic Balancing Reserve (SBR) which are both schemes to alleviate pressure on the national grid and ensure sufficient capacity.
National Grid’s spending and return is governed by an eight year price control period signed off by Ofgem. The regulator has reviewed National Grid’s spending plans for the period 2013-21 and found that it needs less money in some areas and more in others.
While National Grid spent significant sums on SBR, which pays power stations to be available if needed, the demand-side response (DSR) market also gained some benefit from the DSBR service.
Ofgem also plans to allow the system operator an additional £2m to fund engagement programmes, such as the Power Responsive platform and simplification activities.