Demand Response

ERCOT Overview

Wholesale market sellback allows energy users to curtail or shift loads for brief periods of time to mitigate exposure to high locational marginal prices (LMP) and sell unused power back into the wholesale marketplace at the current LMP. This option is available to all ERCOT customers on a fixed price product or block and index product. If you're on a fixed price product, then selling energy back to the market at the real-time index value can represent significant income. If you are buying your energy on full index, then this program is your price spike protection system. As an important part of buying at index, you need the ability to respond to high price market times and avoid significant risk exposure. Your electric provider or hardware company will cover 100% of technology and installation costs.

The ERS program is an emergency load curtailment program sponsored by ERCOT to ensure grid stability. This program generates ongoing payments regardless if your sites are curtailed or not. We like to bid conservatively into this program and assume there could be calls each year. Note: enrollment in the ERS program  would occurs in September, January, and May of each calendar year.


California Overview

In CAISO's Capacity Bidding Program (CBP), customers nominate load to be reduced when called upon to help manage demand spikes or supply shortages. Although reductions are mandatory when called, you will receive guaranteed payments whether events occur or not. You will also have the ability to change your nominations on a monthly basis, meaning you can adjust your participation to fit your operational needs. Perhaps the most important aspect of using our ADR system for CBP participation is that utility funding will cover 100% of technology and installation costs, meaning you receive the system free of charge and there is no cost recovery required by any party.

The device will receive notice of pending CBP events several hours in advance. The system will automatically notify an employee list of your choosing and initiate any pre-cooling or other preparatory measures you desire. During an event, your facilities' energy consumption will automatically adjust to levels that you chose in advance, and you will receive reports and recaps detailing your performance , estimated revenue, and cost savings.


PJM Overview

Emergency Capacity Program
Structured to provide emergency grid relief. Customers paid based on amount of kW made available even if an event is never called. Incentives are zone-specific and paid based upon capacity clearing prices for that program year.

Economic Load Response (ELR)
Customers submit bids through a Curtailment Service Provider (CSP) into the day-ahead or hour-ahead market. Curtailments are voluntary, and customers are paid for reductions at the full hourly market price.
 
Synchronized Reserve
This reliability-focused programs incentivizes customers to provide short-notice, short term reduction to help maintain grid stability. Customers typically receive 10-30 minutes of notice prior to events, which last for up to 60 minutes. Customers determine on an hourly basis whether or not they would like to perform.

Financial Estimates:

Texas
100kW Load Reduction x 50 Facilities
Potential 5 year benefit - $2,062,500


California
100kW Load Reduction x 50 Facilities
Potential 5 year benefit - $1,400,000


PJM Market
 100kW Load Reduction x 50 Facilities
Potential 5 year benefit - $2,133,333


Georgia
 100kW Load Reduction x 50 Facilities
Potential 5 year benefit - $1,600,000


Nyiso
100kW Load Reduction x 50 Facilities
Potential 5 year benefit - $1,500,000