What is Demand Response?

Demand Response (DR) is the temporary reduction of electrical consumption at the end-use customer level in response to high wholesale electricity prices, system resource capacity needs, or system reliability events.

How Does Demand Response Work?

GDF SUEZ Energy Resources works together with customers to come up with a demand reduction strategy - how much load reduction is available over which times of day. GDF SUEZ Energy Resources will be the program manager to maximize the financial benefits the customer receives for participation in customized Demand Response program.

What Are The Three Basic Types of Demand Response Programs?

• Economic Programs - Customers can bid their load reduction into wholesale real-time and day-ahead power markets, just as a large generation station does. In exchange they can receive the economic benefit of high power prices during periods of extreme volatility. So, in addition to the benefit of reduction in billed kwh from their retailer and utility, the customer will be paid the wholesale market price of power for their load reduction for each hour that they actually reduce their load when dispatched by the ISO. Keyword: Volatility
• Reliability Programs - A customer can offer to reduce its load during times of extreme system demand, helping to prevent potential brownouts or blackouts. The Customer will receive ongoing "standby" capacity payments for doing so, even if they are not called on as a resource. If an actual curtailment event occurs, many programs also pay an energy payment based on the market price of power during the times of the event. The payments in reliability programs are typically made on a monthly basis. Keyword: Safety
• Ancillary Services- Customers can bid their quick-response load reduction capabilities into the wholesale ancillary services market to augment and supplement services provided by large generation stations, receiving payments for doing so. The payments are a blend of the economic and reliability programs - the customer receives a standby capacity payment, even if there is no event called, but just for the specific hours that; 1) they choose to be available and 2) their offer is accepted by the ISO.  Keyword: System Stability

How Can Demand Response Participants Curtail Electric Load?

Participants can reduce electricity consumption in two ways: Self Generation, such as emergency backup generators or curtailment which means turning off lights, raising temperature set-points or changing production schedules.

Who Participates In Demand Response?

Typical customers include multi-site or large retailers, healthcare, manufacturers, high rise office buildings, data centers, grocery stores and those with backup generators. Generally a minimum 100kW demand reduction is required to participate, but amounts can vary by program type.

How Does Enrolling in a Demand Response Curtailment Program Help Your Organization?

A Demand Response program helps organizations earn economic incentives by reducing their electricity load (i.e. curtailment) at times when the grid is under stress. When demand starts to increase on the hottest or coldest days of the year, Demand Response programs are activated across the region to help ease the power grid. These programs were created to help reduce the need for additional generation resources and prevent blackouts. The Federal Energy Regulatory Commission (FERC), state utility commissions, and various state agencies helped form these programs.

How Does the Enrollment Process Work?

In order for customers to participate in Demand Response, they must contract with a Demand Response provider. A Demand Response provider is registered with the ISO or utility, and facilitates communication and program management between the customer and its ISO/utility. Though specific responsibilities vary by region, it is generally the enrolling participant's job to work with the customer to determine the appropriate level of curtailment capability, assist in any on-site equipment requirements, and then complete registration directly with the ISO or utility.

Will I Need Equipment Upgrades to Participate?

This depends on whether or not your facility is currently equipped with an interval meter capable of reading your consumption in hourly increments.

What is a Baseline?

A baseline is a calculation of a customer's typical electric usage. During a Demand Response event, curtailment of actual load is measured against the baseline, and it is this delta that represents performance during a Demand Response event, and thus becomes the basis for the calculation of payments. The methodology for baseline calculation varies by region, and in some cases by electric utility.

How Often Will I Have To Curtail?

That varies with the program type and location. Generally, reliability programs are called as a last line of defense before rolling blackouts and are just a few hours per year if at all. Economic programs are voluntary and customers can participate as much as they want depending on the market price of power or their ability to reduce consumption. The more hours of participation the higher the financial benefit. The ancillary services programs require quick response times but are usually only a few minutes in length.

What if I want to automate my Demand Response reduction?

Many customers deploy their load reduction manually after a phone call from GDF SUEZ Energy Resources. However, if you want to have your energy load reduction automatically deployed in a curtailment, contact us and we will have our technical experts help determine the best solution for you.

When does my organization get paid?

GDF SUEZ Energy Resources sends payment to customers within 30 days of receiving payment from the ISO. This gives us a chance to reconcile the actual payment with the anticipated payment and correct any discrepancies through the ISO. Some payments are at the end of a contract period, others are received monthly. The ISO goes through a settlement process that can take up to 70 days after the program period. Please refer to your program specifics and contractual obligations for more details.

I have other facilities within my organization that may qualify for DR programs, how can I find out if they qualify?

There are three easy ways to contact GDF SUEZ Energy Resources DR experts:

    Online - click here

    Call Us - contact us at 1-866-999-8374

    Email - demandresponse@gdfsuezna.com