Demand turn up
The demand turn up service encourages large energy users and generators to either increase demand or reduce generation at times of high renewable output and low national demand. This typically occurs overnight and during weekend afternoons in the summer. Find out about routes to market as a provider.
There are two forms of payment that we will make as part of the demand turn up service:
- availability payment – for being available to provide the service; and
- utilisation payment – for delivering the service when instructed.
Providers have the flexibility to submit their own prices for the service. These prices will inform the economic assessment to determine which parties are accepted.
For both the fixed and flexible service, no availability payment will be paid outside of the defined availability windows (i.e. if called upon during optional windows, providers will receive utilisation payments only).
For the fixed service, providers state at the tender stage the prices they wish to receive for availability and utilisation. These will then be fixed for the duration of the service term.
For the flexible service, providers can change their prices as frequently as twice a week, on a Friday and Tuesday, to reflect market conditions.
What can providers expect to be paid?
For the 2016 service period (May to September), we procured 309 MW of demand turn up. The service was used 323 times between May and September, for a total of 10,800 MWh and an average utilisation price of £61.41/MWh.