NEXT
Demand Response Programs under SMD
Demand Response Programs continue to play a critical role in New England under SMD. ISO New England will again offer its Price and Demand Response options to program participants opting to play a role in increasing system reliability.
However, the creation of a multi-settlement system in New England provides program participants with a wider range of options to contribute to demand response initiatives. These programs are restructured to include demand response opportunities in both the day-ahead and real-time markets.
To foster additional participation in Demand Response Programs, ISO New England will introduce three new programs in 2003, including:
- Day-Ahead Demand Response enables program participants to offer load reduction bids into the day-ahead wholesale energy market (a day in advance of the actual dispatch day), in direct competition with supply bids. These load reduction bids would be fully integrated into the scheduling and settlement processes of the day ahead software and can set the day-ahead zonal electricity price just as would a comparably bid generator.
- Real-Time 2-hour Demand Response compensates program participants for reducing consumption at ISO New England's direction. During periods of system emergency, ISO New England will direct participants to reduce or end their power consumption on two hours notice.
- Real-Time Profiled Response allows those without interval metering, but with directly controllable loads that are capable of being interrupted upon 30 minutes notice, to participate in the Demand Response Program.
ISO New England will continue its established Demand Response Programs.
- Real-Time 30-minute Demand Response is similar to the Real-Time 2-Hour Demand Response as described above, but requires 30 minutes notice from the ISO for participants to decrease or cease their use of electricity.
- Real-Time Price Response compensates participants for monitoring and controlling their consumption in response to real-time market prices. Participants will be able to monitor the hourly price of power via Internet-based software, e-mail, fax, or pager. When prices begin to rise, ISO New England will notify users of periods during which they can receive compensation for voluntarily reducing their consumption.
What Are the Benefits?
Energy conservation and Demand Response Programs are a critical component to New England's wholesale electricity marketplace. These demand-side management programs help to curtail demand when it is needed most and ensure a reliable electricity supply within the region.
