Polish Transmission System Operator (PSE) and PGE Mining and Conventional Energy (PGE GiEK) have signed on 22 March 2013 the first on the Polish electricity market agreement regarding Demand Side Services (DSR). Further analogous actions covering even 500 MW with another contractors are announced by PSE.
PGE GiEK is the subsidiary of PGE which, in turn, possess the position of the Polish largest utility taking in account the electricity generation fleet.
A new service i.e. "negawats" consists in a customer's load reduction on transmission system operator's (TSO) demand. The service represents an important element of the electricity system defence, however of an extraordinary character. It may be also used for electricity system optimistation.
The agreement was executed in effect of the open public tender carried out by the PSE according to the public procurements procedures. It was directed to most significant electricity customers offering the greatest demand reduction capability within relatively urgent time-limits.
The tender was split in 8 separate parts and the PGE GiEK's bid related to 2 of them. Both bids offered 750 PLN for each MWh of reduced load.
In effect of tender PGE GiEK became the first in the Polish market service provider for DSR. The service will involve PGE GiEK's mining activity in the Belchatow lignite mine. DSR will be performed by switching off PGE GiEK's appliances, in such a way, however, the supplies of lignite to the Belchatow power plant were not disturbed.
Given current levels of demand, it is possible for PGE GiEK to reduce load in this manner in the range of 25-30 MW.