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Demand Side Response

Contract ID: RM3792

Start Date: 21/06/2017

End Date: 20/06/2020

Description

Demand Side Response is the term used for a scheme where customers are incentivised financially to lower or shift their electricity use at peak times. This helps Transmission and Distribution Network Operators to manage or ‘balance’ the load or voltage on electricity networks to ensure supply meets demand and consequently that nationally we can continue to ‘keep the lights on’.

There are a variety of different schemes available for Demand Side Response which request either additional capacity to be generated to the grid to meet demand or for capacity to be reduced from the grid. This can be achieved from a variety of assets used widely across the public sector including:

• Combined Heat and Power systems (CHP)
• Back-up generators
• Buildings management systems which can vary the load requirement from non-essential equipment such as air conditioning, heating, chillers etc.

In addition to these network schemes there are opportunities for customers to derive savings from the reduction of electricity consumption from the grid during peak times which incur fixed transmission and distribution costs.

There are many public sector organisations including hospitals, universities, the Ministry of Defence and Local Authorities who already participate in Demand Side Response and are generating additional revenue whilst reducing energy bills. Please visit the case studies section of this web page for further information.

The Suppliers on this framework act as an ‘aggregator’ so that smaller sites can access DSR schemes. The suppliers will carry out a site assessment to determine if your site is suitable and advise on what schemes are appropriate for you to participate in.

A full description of Demand Side Response schemes can be found on the National Grid Power Response Campaign website. Visit the Next Steps page where you can download some useful guides:

http://powerresponsive.com/

A full description of the Capacity Market can be found here:

https://www.emrdeliverybody.com/cm/home.aspx
 

Benefits

Benefits of Demand Side Response

There are multiple benefits to customers participating in demand side response schemes:

(i) Offers a source of revenue from Network Operator schemes managed by the National Grid and Distribution Network Operators

(ii) Reduces overall energy bills by utilising less electricity from the grid during the most expensive times

(iii) Enhances asset reliability from regularly running back-up generators

(iv) Contributes to improving on-site resilience

(v) Contributes to lower national carbon emissions

And of using the framework:

• Reduced timescales: no need to run a full OJEU procurement, you simply need to identify your requirements, present these to the market and award a contract.

• Ease of use: the framework is simple to use, with expert procurement advice available where required.

• Easily identifiable revenue and cashable savings with an approved benefits methodology

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Access

Should you wish to access the agreement, please first read the customer guidance document and review the call-off terms and conditions for the framework.

Before selecting your supplier, you may wish to undertake fair and transparent pre-market engagement activity with the framework suppliers. This can be done via the eSourcing suite, or using the contact details provided on this page.

Direct ordering

You may place direct orders providing you establish a clear statement of requirement for the services required and apply the direct award criteria.

Further competition

You will be required to manage the process in accordance with your own requirements and processes. Information about running a further competition through our e-sourcing suite can be found in our customer guidance.

A more detailed process map and key steps can be found in our customer guidance document.

In summary, your further competition should:

• Specify a fixed time limit for submission of proposals (the time limit should be of sufficient duration to allow proposals to be submitted, taking into account factors such as the complexity of the services, the requirement and the time needed to compile and submit a proposal).

• Seek proposals for fulfilling the requirement, including agreement to any special terms proposed by you.

• Contain a copy of the order form, completed as if it were the order to be placed.

You should then evaluate the proposals received and notify all invited service providers of the outcome. Place the resulting order with the service provider who has submitted the most economically advantageous tender. The high-level evaluation criteria must match those used when tendering for the framework and be grouped under the following headings:

• Quality: 40% (+/- 10%)

• Price: 60 % (+/- 10%)

The total score must come to 100%. Sub-criteria can then be placed under these two headings, specific to your requirements. Schedule 6 of the framework agreement provides guidance on further competition award criteria.
 

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Savings

There is both revenue generated from participating in DSR and savings which arise from not using grid supplied electricity during the most expensive times. The network operator or distribution network operators pay the aggregator for capacity and the aggregator then passes on that revenue to you.

It should be noted that revenue and savings cannot be guaranteed as the schemes are only operated in response to system stress events.

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Background

The Framework Agreement replaces the previous framework reference number RM964.

This new framework agreement RM3792 runs for an initial framework period of 3 years from 21/06/2017 with the option to extend for a further 12 months.

This Framework Agreement is available for use by all UK public sector bodies including (but not limited to) central government departments and their agencies, non-departmental bodies, NHS bodies and Local Authorities. For absolute assurance of who can access the framework please check the OJEU notice.

All suppliers have been appointed onto our framework agreement following the successful completion of a rigorous EU compliant tendering exercise.

Lot details

This is a single lot framework agreement. The full description can be found in the Specification. This is available for download from the documents section of this web page. 

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Lot details

Lot Number Lot Name Lot Category Number of Suppliers Contract Expiry
1 Demand Side Response Energy 6 - click here to view suppliers 20/06/2020

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Framework Manager Contact Details

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