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State of Demand Response. Stu Bresler Vice President- Market Operations PJM Interconnection 10 th OPSI Annual Meeting October 13, 2014. A Potential Bridge to the Future. Proposed path toward market clarity and confidence. Fog of market uncertainty. - PowerPoint PPT Presentation
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PJM©2014www.pjm.com
State of Demand Response
Stu Bresler
Vice President- Market Operations
PJM Interconnection
10th OPSI Annual Meeting
October 13, 2014
PJM©20142www.pjm.com
PJM©20143www.pjm.com
A Potential Bridge to the Future
Proposed path toward market
clarity and confidence
Proposed path toward market
clarity and confidence
Fog of market
uncertainty
Fog of market
uncertainty
PJM©20144www.pjm.com
Today PJM Proposal
Capacity market Supply resource(Similar to generation)
Demand bid
Capacity obligations Reduce load per rules Same
Who manages?Curtailment service
provider/load serving entityLoad-serving entity/retail
service provider
End-use customersAll may participate subject
to regulatory rulesSame
Energy marketEconomic or emergency resource; paid full LMP
No direct compensation; benefits through cost-savings
Ancillary service marketCurtailment service
provider or load-serving entity manages
Same
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Demand Response: PJM’s Proposal vs Today
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Integration of Demand Response Bids with RPM Demand Curve
Shown based on existing PJM VRR Curve. PJM has proposed an alternative demand curve as part of its triennial review process.
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Transition Mechanism Summary
PJM would:•Determine demand resource commitments which are load-serving-entity-based and can be directly converted to demand response curtailment commitments•Work with curtailment service providers, states and load-serving entities to explore how demand resource commitments may transition to load-serving entity-based curtailment commitments•Establish procedures to release demand resources that cannot be converted from capacity commitment
– no capacity credit for released commitment– no curtailment obligation in delivery year
•Account for released demand resources in remaining incremental auctions for three transition delivery years
– if necessary, purchase additional capacity to replace released demand resources– load-serving-entity-based demand response eligible to bid into incremental auctions
•Preserve terms of curtailment commitment in energy market for each type of demand resource (limited, extended summer and annual) during the transition.
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