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KiWi Power Limited’s Revolutionary, Low Cost, Demand Response Platform (KDRP)

Periodic Reporting for period 1 - KDRP (KiWi Power Limited’s Revolutionary, Low Cost, Demand Response Platform (KDRP))

Reporting period: 2015-03-01 to 2015-06-30

CHALLENGE: Demand response (DR) is central to the successful evolution of a new low carbon electricity system in order to deliver grid flexibility & stability, however it is progressing slowly in the EU due to technological barriers which prevent widespread uptake, including: high hardware costs (€4.000 - €6.000); hardware not specifically designed for DR → lack critical functionality (e.g. wireless communication, integration of renewables); & not sufficiently open for wider industry participation.

PROPOSED SOLUTION: To address the need for innovations that overcome principal barriers to DR, this project seeks to advance Kiwi Power Limited’s (KPLs) Energy Management Platform, KEMP, from a prototype demonstrated in a relevant environment (TRL6) to complete & qualified commercial prototype (TRL8). KEMP is a low cost, automated ancillary services platform which consists of: [1] Unique hardware: multi-asset control; integration of renewable assets; wireless communication between assets → reduced installation cost; & second by second meter readings – requirement for Frequency Response programmes. [2] Innovative software: cloud based – for greater scalability; flexibility & remote monitoring, forecasting model - for integration of renewables; & optimisation engine - to maximise revenues.

ACTION OBJECTIVES: technology validation, market analysis, economic & business assessment, operational capacity analysis. Activities have been delivered within a 4 month period, & have resulted in a comprehensive feasibility report detailing the next steps towards development & commercialisation, forming the basis of the SME Phase II Business Plan.
WP1: Actions: research into optimisation and forecasting models, communication protocols and methods of simulating results. Results: technical specification for Phase 2 defined.
WP2: Actions: wide scale customer consultation via online survey – 45 stakeholders completed. Results: market need confirmed, 11 trial sites identified, market barriers & strategies proposed.
WP3: Actions: route to market & income model proposed based on market research/end user consultation. Phase 2 work plan drafted. Results: ROI calculated for both KPL & a range of end users. Phase 2 budget calculated.
WP4: Actions: analysis of legal, market conditions & regulatory framework, & freedom to operate study. Results: increased awareness of operational risks & full schedule of arising IP.
The KDRP project strongly aligns to the EU energy objectives as defined in EU’s 20-20-20, EC Energy Roadmap 2050 & EU Energy Security Strategies. Wide scale market adoption of the technology, which has been proven both technically and commercially feasibility during this study, will lead to the following social, environmental and economic benefits:
[1] Diverts demand away from unsustainable (coal & gas) power plants: once the 1592 MW market share has been achieved 443,000 – 900,000 tonnes of CO2 will be saved p.a. compared to if peaking power plant resource had been used.
[2] Increased renewable penetration of approximately 2% (not currently utilised in DR or FR programmes).
[3] Avoids investments for upgrading the EU transmission and distribution network e.g. UKPN will have to spend ~€2,25bn by 2015 to upgrade their distribution network with the conventional approach (replacing cables, transformers and substations), by utilising DR at the distribution level they can save ~30% of this cost.
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