3. 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.
4. 100% 90% 75% 50% 25% Introduction to Demand Response Approximately 10% of available generation is used to serve the top 1% of hours. Winter Spring Summer Fall
5. 50% 25% Introduction to Demand Response End-users respond by curtailing non-critical loads or, if permitted, transferring load to emergency backup generators. Event End Notification Event Start Meter Demand
6. 50% 25% Introduction to Demand Response When aggregated together, DR resources provide significant reductions that help maintain grid reliability. ISO-NE Forecasted and Actual System Demand – 6/24/2010 Source: http://www.cvx.com/
7. 50% 25% Introduction to Demand Response What are the benefits of DR vs. traditional generation? Pinpoint location—no transmission constraints Lower cost and shorter time to commercial operation Environmental benefits of load curtailment
8. 50% 25% Introduction to Demand Response Why do end-users participate in DR programs? Payments (capacity, availability, energy) Reduced energy costs Wholesale electricity price transparency Goodwill in community
