CEEIC Demand Response Webinar October 23, 2014 Who Is EnerNOC? • EnerNOC is transforming energy management through Energy Intelligence Software • DR, EE, Utility Bill Management, Carbon Reporting, Financial and Budgeting Information • Global company with over 6,000 companies and 30,000 sites streaming real-time energy data into our platform • Founded in 2001, Public in 2007 • Providing DR services in every open North American Market and through bilateral contracts with utilities. • In CA since 2004 • 100 employees • Variety of energy programs with all major utilities • San Francisco Western Regional HQ 2 Introduction • What is Demand Response? • History of DR in California • Demand Response Terminology • The Changing DR Landscape 3 What is Demand Response? Same Energy Language, Different Dialect Demand Response (DR) is a reduction in demand in response to price signals, system conditions or incentives. 100% 90% Winter 4 Spring Summer Fall PJM Screen Shot for BGE Zone 5 History of Demand Response in California DR Isn’t New to California • IOUs have had DR programs for decades in the form of interruptible tariffs and direct load control. • After the energy crisis, IOUs offered more DR options, including 3rd party aggregator contracts; Energy Action Plan places DR and EE at the top of the loading order. • To date, retail programs represent the majority of DR in the state (5%). • CPUC and CAISO want more DR participation in the wholesale market • CAISO would know when, where, and how much DR is available • DR participation in the wholesale market counts for resource adequacy • Current DR Rulemaking wants to explore how to expand DR and how to integrate it into CAISO’s market • Broadly supported settlement on the DR Rulemaking is being considered by the CPUC 6 Demand Response Terminology Same Energy Language, Different Dialect • Demand Response (DR) Rulemaking • Demand Response Provider (DRP) -the entity that bids supply-side DR resources into the wholesale market • Demand Response Auction Mechanism (DRAM)-CPUC’s Energy Division’s proposal to provide capacity payments to DRPs outside of CAISO. • Categories of DR Resources • Load Modifying Resources (LMR) • Utility tariff programs • Aggregator Managed Programs (AMP)-contracts with third-party aggregators • Supply-Side DR Resources • Proxy Demand Resource (PDR) -allows DRPs to submit offers to provide energy and ancillary services • Reliability Demand Response Resource (RDRR)-incorporates emergency DR programs into the market 7 Demand Response Terminology (cont.) Same Energy Language, Different Dialect Resource Adequacy (RA) A regulatory requirement upon load-serving entities (LSEs) to procure enough capacity to meet 115% of peak demand, to meet local requirements and now to meet flexible requirements determined by the CAISO. CAISO’s DR-Related Stakeholder Initiatives • Reliability Service Initiative (RSI)-CAISO Stakeholder Process to establish offer obligations for DR resources in order to count for resource adequacy. • Flexible Resource Adequacy Criteria Must Offer Obligation (FRACMOO) – establishes a flexible RA requirement for LSEs, in which DR can meet a portion of the requirement 8 The Changing DR Landscape What’s Changing the Way We Look at DR Resources Going Forward San Onofre Nuclear Generating Station (SONGS) retirement Source: CAISO Demand Response and Energy Efficiency Roadmap: Maximizing Preferred Resources, December 2013, Page 7 9 The Changing DR Landscape What’s Changing the Way We Look at DR Resources Going Forward (Continued) DR Automation New Regulatory Policies (Distribution OIR, IDSM OIR, NY REV) 10 GHG reduction strategies (AB32, EPA 111.d) Mona Tierney -Lloyd Senior Director, Western Regulatory Affairs 805.995.1618 [email protected] www.enernoc.com Speakers Matthew Tisdale Advisor to Commissioner Florio CPUC Mark Martinez Senior Policy Manager, Customer Service SCE Jill Powers Smart Grid Solutions Manager CAISO 12 12 • QUESTIONS ? the gotowebinar Please submit questions through question/chat feature (located on the gotowebinar toolbar) • Final slides will be sent to registrants following the webinar and posted to http://www.efficiencycouncil.org/home • Don’t forget to register for the Efficiency Council’s 2014 Annual Conference, in Berkeley on Nov 13! California Energy Efficiency Industry Council 436 14th St., Suite 1020 Oakland CA 94612 (916) 390-6413 [email protected] 13 13
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