Introduction to Demand ResponseBrendan Endicott, Senior Manager of Energy Markets at EnerNOC, Inc.

Q: What is Demand Response?

Introduction to Demand Response

Q: What is Demand Response?

A: Demand Response, or DR, is the ability of end-users (commercial, industrial, institutional, residential, etc.) to reduce electricity demand in response to system contingencies or high prices.

Introduction to Demand Response

50%

100%

Winter Spring Summer Fall

75%

25%

90%

Introduction to Demand Response

Approximately 10% of available generation is used to serve the top 1% of hours.

50%

25%

Introduction to Demand Response

End-users respond by curtailing non-critical loads or, if permitted, transferring load to emergency backup generators.

12:00 PM

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1:00 PM

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400

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1,000

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kW

Event Start Event End

Meter Demand

Notification

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25%

Introduction to Demand Response

When aggregated together, DR resources provide significant reductions that help maintain grid reliability.

Source: http://www.cvx.com/

ISO-NE Forecasted and Actual System Demand – 6/24/2010

50%

25%

Introduction to Demand Response

What are the benefits of DR vs. traditional generation?

1. Pinpoint location—no transmission constraints

2. Lower cost and shorter time to commercial operation

3. Environmental benefits of load curtailment

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25%

Introduction to Demand Response

Why do end-users participate in DR programs?

1. Payments (capacity, availability, energy)

2. Reduced energy costs

3. Wholesale electricity price transparency

4. Goodwill in community

Questions?