As part of its ambitious low-carbon plans, the UK government is
tackling both the supply of electricity (through its various
subsidy regimes that support low carbon generation) and the demand
for electricity.
The government's proposals for the Capacity Market include
(a) spare generation capacity that can be switched on during peak
periods (by far the biggest contributor to the Capacity Market),
and (b) initiatives that target the demand side. Perhaps the better
known of these initiatives is Demand Side Response, that
requirement of the Capacity Market that can be met by large-scale
consumers who can shift or switch demand to non-peak periods.
The other demand-side component of the Capacity Market is
Electricity Demand Reduction, where demand is reduced as a result
of the installation of more efficient kit. The government is
running an EDR Pilot programme, to examine the viability of
electricity demand reduction in the Capacity Market and to learn
lessons for
