The New York Independent System Operator (NYISO) updated its list of demand response providers on February 9. With the snow piling up and average temperatures in the 20s, it may seem like an odd time for New Yorkers to think about air conditioning and peak summertime demand, but energy services provider ConEdison Solutions recommends that energy managers start planning now to participate in demand response (DR) programs. Companies that participate can earn significant financial incentives—about $300,000 for a 1.4 million-sq-foot office building. To maximize the financial benefits they receive from these programs, facility managers need to know what operational steps they will take in case of a DR event, how to implement or update relevant energy management infrastructure and they must sign up for the relevant program.
NYISO describes its four DR programs:
- Emergency Demand Response Program – During energy shortage situations, companies agree to reduce their power usage. These reductions are voluntary.
- ICAP Special Case Resource – During energy shortage situations, companies agree to reduce their power usage; however, when the company signs up, it is paid in advance and commits to a specific, mandatory reduction.
- Day-Ahead Demand Response Program – Participants bid demand reductions (negawatts) into the day-ahead energy market, just like power generators. Offers deemed economical through the auction process receive the market clearing price.
- Demand-Side Ancillary Services Program – Retail customers that can meet specific telemetry and other qualifications can bid load curtailments into the ancillary or real-time market. They receive the standard market clearing price for reserve or regulation service.
Earlier this month, NYISO released its 2014 annual report on its DR programs, which provides details about program participants and results.