Dr. Paddy Finn:

Demand response is not capital-intensive. Our deployment costs for an equivalent MW to batteries is about 1% to 2% of the capital cost. However, we have higher operating costs because of the need to pay participating clients. For energy storage systems, they need longer term incentives to procure the capital needed; for demand response, we need the market to be procured close to delivery time. A prime example of this being done successfully is Australia, where the electricity market is procured on a five-minute basis. Effectively, it is procured five minutes out. That gives demand response the most accurate figure for what it will be able to contribute to that next period. Rather than a day-ahead market or longer term procurement, demand response needs near-time procurement to maximise what it can deliver, however that would differ from the key signal needed for storage.