Writer(s):Ove S. Grande, Hanne Sæle, and Ingeborg Graabak
Publication Date:December 1, 2008
Publisher:SINTEF Energy Research
Abstract:This report summarizes the main results and contributions from the “Market Based Demand Response” project (2005-2008). The project has been organized in three work packages with the following focuses: WP 1: Measures to increase the demand side price elasticity, WP 2: Technology and quality improvements in the “meter value chain” from the meter to the electricity bill and WP 3: International development through participation in the IEA/DSM project “Demand Response Resources.”
One of the main aspects in this project was to encourage demand response to the marginal price in the electricity markets. Spot price energy products and Time of Day (ToD) tariffs have been used for both households and for larger customers. The principles and reason for the choice of tariffs are explained in the report. The following pilot tests involving households and medium sized customers have been carried out a) “Fixed Price with Return options” energy contract, b) Remotely controlled load shifting, c) “Smart house” control in housing cooperative, d) Low prioritized loads controlled by building energy management system (institution and shop) and e) Automatic Demand Response to the electricity spot price.
The Norwegian authorities have now decided that “smart meters” should be installed to all customers in Norway within 2014. Experiences from full-scale implementation of systems for automatic meter reading (AMR) have in this context been collected and described, and a specification of requirements for AMR systems is developed in cooperation with a group of network owners. Definitions of how to measure quality and availability of hourly meter data within the settlement period is proposed by the project.
The main recommendations from the project:
I) Temporary reduction in space heating and load shifting of water heaters are the most convenient demand response objects in Norway
II) Frequent metering is needed to secure that the responsive customers really get lower bills in periods with high prices
III) ToD network tariff combined with hourly spot price provide the customers with a dynamic price signal that gives incentives to needed investments and to load reduction in peak hours
IV) Rational implementation of remote and /or local control options should be considered as a part of the coming AMR projects
V) Quality requirements should be included in the directions from the regulator
VI) The requirement specification developed in the project is recommended as a basis for tenders
VII) Nordic cooperation in the Nordic AMR Forum should be priortised
VIII) The investments in AMR systems need to be followed up by dedicated programs with focus on how to respond to price variations, preferably combined with information about the environmental impact (CO2 emissions etc.).
Writer(s):Bernie Neenan, Donna Pratt, Peter Cappers, James Doane, Jeremey Anderson, Richard Boisvert, Charles Goldman, Osman Sezgen, Galen Barbose, Ranjit Bharvirkar, Michael Kintner-Meyer, Steve Shankle, and Derrick Bates
Publication Date:January 1, 2003
Publisher:Neenan Associates
Abstract:This summer was the second year of operation for the New York Independent System
Operator’s (NYISO) suite of Price Responsive Load (PRL) Programs: the Day-Ahead Demand
Response Program (DADRP), the Emergency Demand Response Program (EDRP), and the third
year of operation for the Installed Capacity Program/Special Case Resources (ICAP/SCR)
program. It also marked the second year that the New York State Energy Research Authority
(NYSERDA) provided funding to support participation in these programs. NYISO and
NYSERDA commissioned Neenan Associates to conduct a comprehensive evaluation of the
performance of these PRL programs, building on methods and protocols developed last year and
augmented by significant professional staff resources provided by the Consortium for Electric
Reliability Technology Solutions (CERTS) with U.S. Department of Energy (DOE) funding.
The PRL program evaluation was undertaken from three perspectives. The first, topdown,
perspective looks at the overall impact of PRL programs on New York electricity market
prices and system reliability. Quantifying price impacts involves simulating what prices would
have been had the curtailments not been undertaken. A supply model developed last year was
used to reconstruct this year’s market supply curve and estimate the change in hourly prices due
to PRL-induced curtailments. Reliability impacts were estimated by valuing the improvement in
reliability associated with curtailments undertaken through the EDRP and ICAP/SCR programs,
which were jointly administered during 2002.
The second perspective explores why some customers chose to participate while others
did not and characterizes the strategies participants employed to curtail when the opportunity or
obligation arose and quantifies their performance during events. A variety of statistical analyses
and behavioral models were developed from data collected by a survey administered to both
participants and non-participants. More in-depth interviews were conducted with a sub-set of survey respondents to further characterize the decision process that customers undertook when
evaluating PRL participation opportunities.
The third perspective examines demand response from the vantage of market entities that
have incorporated or may incorporate these services into their business model by analyzing
demand response as a business opportunity. A combination of survey data, collected from entities
such as load-serving entities, curtailment service providers, control and information technology
vendors and performance contractors, and financial models were used to characterize
expectations for returns from subscribing customers to the NYISO’s PRL programs.