What is DSR?

It is the ability of a consumer to reduce their electrical energy demand at a specific moment. The readiness to take such actions upon request is considered a service. As a result, companies providing this service receive appropriate compensation.

DSR stands for “Demand Side Response”. The demand side refers to energy consumers, and the response is their reduction in electrical energy demand during peak demand hours, upon the request of the transmission system operator (TSO), which in Poland is Polskie Sieci Elektroenergetyczne.

DSR is defined in the catalog of system services as the IRP Service, which is one of many remedial measures used by the TSO to maintain the stability of the National Energy System.

DSR programs have been operating worldwide since approximately the 1970s. In Poland, however, this is a new solution.

The demand response service can be implemented:

1. within the Guaranteed Program offered by Polskie Sieci Elektroenergetyczne S.A.,
2. indirectly through aggregators of this service.

How do DSR services work in practice?

Entities that meet the conditions for providing DSR services can join the program. To do this, they must enter into an appropriate agreement – either directly with the operator or with an aggregator. And what happens once all formalities are completed?

Then:

• the entity is placed on a list of those that have expressed readiness to reduce energy consumption in specific situations;
• when critical factors occur, Polskie Sieci Elektroenergetyczne sends a call to implement the DSR service – as a rule, this is done at least 7 hours before the planned reduction, and notifications can only be sent between 7:00 AM and 10:00 PM.
• the service provider should comply with the order; however, if for some reason they are unable to do so, they risk nothing other than their remuneration – in such a case, it will not be paid or its value will be reduced.

Benefits of joining the DSR program:

• it is completely safe and can bring a range of benefits to the entity,
• it supports the integration of renewable energy into the grid, which is crucial due to its unpredictability.
• for joining the DSR program, the entity receives remuneration. It is paid even if there was no need to reduce power consumption during the year.

Description of power aggregation operation

1. The service involves periodic (up to 4 hours) reduction of power demand during periods of threat to the transmission network’s operation, performed at the request of the network operator.
2. The reduction request is sent during nighttime hours, allowing for full charging of Energy Storage resources during the night valley.
3. The reduction in demand achieved at the connection point with the DSO network is compensated in the company’s installation by discharging the energy storage.
4. This way, the DSR service contract is fulfilled, under which we receive a fixed, annual remuneration for readiness to reduce during threat hours.
5. In the tender for this service conducted in the capacity market in 2022, the amount reached PLN 406.35/year for 1 MW of power. The amounts offered by aggregators range from PLN 250-350/year for 1 MWh.

dzień n	day n
obciążenie zasobów	load on resources
długość bloku redukcji	length of reduction block
produkt	product
godzina	time
Dostarczenie Produktu polega na wykonaniu redukcji o wielkości i jakości zgodnych z parametrami Produktu	The delivery of the Product involves performing a reduction of size and quality in accordance with the Product’s parameters
moc redukcji	reduction capacity

Below is a list of aggregators who have signed agreements to provide the Demand Response Service until March 31, 2024:

Item	Contractor	Address	Website
1.	Enel X Polska Sp. z o.o.	ul. Złota 59, 00-120 Warsaw	https://www.enelx.com/pl/pl
2.	Enspirion Sp. z o.o.	Al. Grunwaldzka 472 80-309 Gdańsk	https://enspirion.pl
3.	LERTA JRM Sp. z o.o.	Naramowicka 76 61-622 Poznań	https://lerta.energy
4.	Respect Energy S.A.	ul. Ludwika Rydygiera 8 01-793 Warszawa	https://respect.energy
5.	TAURON Sprzedaż Sp. z o.o.	ul. Łagiewnicka 60 30-417 Kraków	https://biznes.tauron.pl

Sources:

• https://www.enelx.com/content/dam/local-poland/Enel%20X%20-%20Podr%C4%99cznik%20u%C5%BCytkownika%20v1.1.pdf
• https://www.wnp.pl/energetyka/nowa-interpretacja-prawa-moze-namieszac-na-rynku-mocy,828284.html
• https://www.brewa.pl/strefa-wiedzy/dsr-co-to-jest.html

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If you have any questions or concerns regarding the above matter, please do not hesitate to contact our experts:

Piotr Włodawiec: wlodawiec[at]prokurent.com

Łukasz Moczydłowski: moczydlowski [at] prokurent.com

Paweł Wróblewski: 'p.wroblewski [at] elbudbis.pl

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Authors:

Piotr Włodawiec – Attorney-at-law / Senior Partner

Łukasz Moczydłowski – Attorney-at-law / Senior Partner

Paweł Wróblewski – CEO ElbudBis

Relkonds

Material prepared in collaboration with: