A: ISO New England's Real Time Demand Response program reduces peak electrical demand by larger power users to help safeguard the electricity grid from failure during extremely high use periods. The intent is to encourage users to enroll in the program to curtail their electrical use when ISO-NE declares a grid emergency. Participants receive ongoing payments based upon the kilowatt load they have agreed to reduce, regardless of whether a curtailment is called. If an event is called, participants receive an additional payment based upon the actual energy reduced during the emergency.
A: The Independent System Operator of New England is a not-for-profit entity created in the late 1990s to manage the six state region's deregulated electric energy market. With headquarters in Holyoke, MA, ISO-NE has the responsibility for maintaining a reliable, safe and efficient electric system from bulk power generation to transmission. In addition, it manages the bulk power planning process and administers the region's wholesale electricity market.
A: Only ISO-NE can initiate procedures necessary to maintain the integrity of the utility grid during extremely high use periods. An integral part of this process is to call upon program participants to reduce their consumption, usually within 30 minutes after being notified. A site can only be called upon to reduce usage on weekdays (non-holidays) from 7am to 6pm. Each end user that is participating in the program will curtail his electric load when notified to do so, reducing kilowatt usage by the amount declared at enrollment. The site is equipped with metering equipment that allows the participant and ISO-NE to monitor the amount of electricity actually curtailed during the event. ISO-NE and DemandDirect notifies participants when the emergency condition is over and normal usage can be restored.
A: DemandDirect is registered with ISO-NE to enroll customers in the Real Time Demand Response program and manage every aspect of participation for the customer. A site visit is conducted to identify what electric loads are available for curtailment or what loads can be removed from the grid by activating an existing emergency generator. If required, measurements and testing can verify these loads. Following the load assessment, the curtailment strategy is agreed to. DemandDirect installs electric metering, data acquisition and communication equipment that will allow the customer, ISO-NE and DemandDirect to monitor the electric load. After a brief testing period of the monitoring system, the kilowatt capacity identified in the curtailment assessment will be enrolled with ISO-NE. The site is then ready to respond. Customers may find over time that the amount of capacity pledged should be adjusted upward or downward.
A: Equipment such as air conditioning and ventilating systems, specific manufacturing equipment, lighting and pumps are candidates for curtailment as well as any other non-essential loads. Emergency generator use is an excellent way to replace grid-supplied power. DemandDirect works closely with each customer to determine the curtailment specifics that are best for the specific site conditions.
A: There have been a total of four events or audits declared by ISO-NE since the beginning of 2003. There is at least one audit every 12-months if no actual emergency condition is declared. Each of the previous events and audits has occurred during the summer. Events can last for the entire 11-hour response period but have typically been less than 6 hours.
A: There is no out-of-pocket cost for the customer. The site assessment, monitoring equipment installation and enrollment is entirely the responsibility of DemandDirect. Should the cost of the of the monitoring equipment, exceed the incentives available, which may occur in more complex installations, these costs will be deducted from the customer's first capacity award. DemandDirect will also help customers identify and obtain grants that may be available for load conservation programs and distributed generation installations.
A: There are no penalties for DemandDirect customers not performing or partially performing during a demand response event. The customer will simply not receive payment for participating or receive partial payment based upon the kilowatt reduction actually achieved. In the case of partial performance, the kilowatt reduction target will be reduced for the next event. A higher kilowatt value can be restored after demonstrating the reduction in a subsequent event or audit.
A: DemandDirect will pay each customer based on the amount of kilowatt capacity that is enrolled in the Demand Response program. The exact dollars per kilowatt will be pre-determined in the agreement with DemandDirect. This capacity payment is made annually. If the actual load reduction achieved during an event is lower than the enrolled amount, the payment will be prorated accordingly. Each customer will also receive an annual energy payment based upon the load reduced and the duration of the specific curtailment event or audit. This is a relatively small amount compared with the capacity payment but generally exceeds the cost of fuel for operating an emergency generator during an event.
A: The economic benefits are a function of how much electricity your business or institution can reduce. The higher the reduction, the higher the payment.
The information available from the real-time metering and monitoring system is always available to the customer and can be displayed and reported in different custom formats. This will help manage the facility's electric usage and identify the reasons for high demand. Additional metering can be installed on specific circuits and/or equipment by DemandDirect to monitor usage more closely and initiate action when demand begins to peak. Alarm features can notify on-site staff to shut down specific machinery to keep the facility demand below a pre-determined point and save monthly utility costs. The site's electric usage profile, shown in real time, will show new opportunities to save additional energy dollars.
Real Time Demand Response participation gives advanced notice of potential grid outages. If you have identified mission critical systems that require protection from a blackout, this can be planned for and action initiated when you are notified of an event.
DemandDirect customers can react quickly during periods of high electricity pricing helping develop additional savings strategies in the energy market.
