Use of standby generation for reduction of transmission network charges for half-hourly metered customers

Abstract

Electricity customers on the GB network pay transmission network use of service (TNUoS) charges. For half-hourly metered (HHM) customers there are “Triad” demand charges which apply to three half-hour periods per year. The periods represent peak system demand and are not known in advance. These (HHM) customers can reduce their Triad charge by minimizing their demand during periods which have a high likelihood of being a Triad. Suppliers and energy service companies can provide warnings of these periods. Many commercial customers have on-site emergency generators to ensure the continuity of critical supplies in case of a supply failure which could be engaged to reduce Triad demand. This paper describes a model of the costs of transmission charges (Triad), distribution network use-of-service charges (DUoS) and energy charges for half-hourly (HH) metered customers. It models the effect of using a standby generator for reducing these costs and calculates the fuel cost and the quantity of CO2 emissions. The model is applied a case study of a building at Newcastle University in which the use of standby generation for Triad avoidance is compared against the existing costs. The cost of diesel fuel consumption is also considered so that the net benefit of using standby generation for Triad avoidance can be determined.