Demand Response
DEMAND PERFORMANCE
Improve your facility’s financial performance by taking advantage of Demand Response opportunities.
PJM DEMAND RESPONSE PROGRAM
Demand Response is a term used to describe programs in which customers receive payments or incentives to temporarily curtail their power usage, either in response to high wholesale prices or due to extreme stress on their power grid. Curtailment Service Providers (CSPs) either enroll customers in the PJM program, or develop demand response programs on their own.
CSPs offer a variety of options for load response to customers that are able to reduce their electricity consumption on demand. The programs allow qualifying customers to participate in real-time, day-ahead, forward capacity and synchronous reserve markets or just receive payment in exchange for voluntarily interrupting their operations during periods of high demand.
» What types of loads are interruptible?
Many types of loads are interruptible. Loads that are good candidates for the program may include lighting, HVAC, elevators and similar motor driven operations, and batch type manufacturing processes.
» How is curtailment managed?
This depends on the program type. Notice times can vary from 10 minutes to day-ahead. The CSP will send instructions to the customer via internet, email, phone, pager or fax.
» Is there any cost to participate?
Depending on existing equipment and control systems, implementation costs for the systems necessary to participate will vary on a case by case basis. If required, in most cases implementation measures can provide a simple payback of around 6 months. CSPs can arrange financing for controls or upgrades necessary to participate in the program if needed.
» Are there consequences for non-performance?
Some programs are strictly voluntary. In mandatory programs, participants that fail to provide contracted capacity when called may have payments reduced.
» How to know if Demand Response is right for you?
- Is your company committed to sustainable initiatives?
- Do you have the ability to temporarily curtail a portion of your power demand?
- Are you interested in lowering your energy costs and taking advantage of their true value of your load reduction capability?
By participating in Demand Response our customers can take charge of their energy costs and open up potential new revenue streams.
To learn more about this opportunity, contact a PJM agent from the
Curtailment Servicer Provider Database.