(EnergyAsia, May 20 2013, Monday) — Two companies have launched a pilot project to help large companies reduce their electricity expenses by slashing or shifting their power consumption during peak demand periods in exchange for payments.

Germany’s Siemens and Diamond Energy, a local electricity wholesaler, expect to start their demand response (DR) service at the Siemens Centre in MacPherson Road in the third quarter.

“Demand Response is a further enhancement to the electricity market which allows consumers to reduce or shift their power usage during peak demand periods in exchange for payments. In this way consumers are rewarded for being flexible in their electricity consumption and are able to benefit from having lower electricity purchase costs,” said Siemens, which signed a memorandum of understanding with Diamond Energy to collaborate on the three-year multi-phased project.

Under the National Electricity Market of Singapore’s Interruptible load (IL) scheme for the commercial building sector, customer are paid for putting a portion of their electricity supply on standby for temporary interruption.

“Consumers are rewarded for being flexible in their electricity consumption and are able to benefit from having lower electricity purchase costs,” said Siemens.

The pilot project aims to demonstrate the feasibility of customised technology and solutions to deploy interruptible load solutions in commercial buildings.

Siemens will supply smart meters and other communication equipment, conduct site surveys for equipment installation, supervise installations while Diamond Energy will provide engineering services.

Diamond Energy, Singapore’s largest Interruptible load aggregator, will manage the project’s operations and demand response programme using its proprietary platform. It has been working with industrial and manufacturing companies to participate in the scheme since 2006.

The partners plan to showcase and present the technology and solutions under the pilot project to potential customers in Singapore upon completion of the pilot project.

“Our mission at Diamond Energy is to provide energy management solutions that can help our customers lower their operating costs through our revenue generating demand response services, while contributing to a sustainable environment,” said Zainul Abidin Rasheed, chairman of Diamond Energy Group.

“An effective demand response programme will bring about market-wide benefits in many areas, including pricing of electricity, resilience of the power system, and infrastructure planning and design.”

Lothar Herrmann, CEO of Siemens Pte Ltd, said:

“The future of energy is a key concern globally, especially in terms of sustainable generation, intelligent distribution, and efficient consumption. Through this pioneering pilot project with Diamond Energy, Siemens hopes to be able to present, together with Diamond Energy, an innovative and efficient smart energy solution for commercial properties in Singapore and beyond.”

Chee Hong Tat, chief executive of the Energy Market Authority of Singapore, said:

“The EMA is continuously seeking ways to enable consumers to manage their electricity consumption and enhance energy efficiency. One idea we are studying is the demand response initiative, which has also been implemented in some overseas jurisdictions. The project between Siemens and Diamond Energy can serve as a useful pilot on how businesses can benefit from demand side management initiatives. I hope it will encourage more companies to participate in such activities.”