Industry in southern Germany could curb peak demand by up to 1.2 GW if demand-side management (DSM) mechanisms are implemented, according to study presented by energy think thank Agora.
Agora, in conjunction with the Fraunhofer institute and FFE research group, found heavy industries across the states of Bavaria and Baden Württemberg have a potential demand response capacity of delaying 850MW of power consumption in the course of two hours or even 1.2GW over half an hour, according to Gas to Power Journal.
The states' energy-intensive industries could reduce demand by almost 1 GW for a period of five minutes using existing technology compatible across industries, the study finds. Demand response can be achieved by temporarily powering down pumps, air conditioning, cooling, lighting and pressure devices.
After surveying 280 companies and interviewing industry associations, the authors found 47 percent of respondents were able to reduce power consumption at peak times.
A fully functioning market for demand-side mechanisms is, however, hampered by current regulation and a lack of incentives for industry and power producers, it adds.
The study focused on the German energy-intensive industry, such as the chemical, cement, paper and steel industries, which is mainly located in the south of the country.