Demand Response - An End-to-End Approach from Markets to Consumers

Transcription

1 Demand Response - An End-to-End Approach from Markets to Consumers Rana Mukerji Senior Vice President Market Structures New York Independent System Operator EPRI PDU Sector Council Meeting Boston, MA September 14-15, 2011

2 NYISO Demand Response Reliability-based programs NYISO controls activation Supplements generation when operating reserves are forecast to be short or actual Operating Reserve Deficiency occurs Emergency Demand Response Program (EDRP) Special Case Resources (SCR) Economic-based programs Resource determines when to participate through offers in NYISO markets Load reduction acting as - and competing with - generation Day-Ahead Demand Response Program (DADRP) Demand-Side Ancillary Service Program (DSASP) 2

3 Demand Response in NY 3

4 DR Activation History 4

5 July 2011 Heat Wave MISO and PJM set new all-time peak load records ISO-NE reported its second highest peak load NYISO missed alltime record peak by only 74 MW Source: U.S. Energy Information Administration based on regional transmission organization and Ventyx Energy Velocity Suite data. Note: Data collated from websites for the ISO New England, the New York Independent System Operator, the PJM Interconnection, and the Midwest Independent System Operator. MISO and PJM claim new all-time peak records based on estimated adjustments to their previous all-time peak demand records reflecting changes their system service areas since

6 Shaving the Peak July 22, 2011 Load New York Control Area Estimated Load without Demand Response Megawatts Actual Load with Demand Response Demand Response data are preliminary estimates Hour 6

7 New Peak Without DR New Record (Without DR) Record Peak Aug. 2, 2006 July 22, 2011 Peak Demand Response data are preliminary estimates 7

8 Looking Ahead NYISO Demand Response DR in real-time energy market DR compensation (FERC Order 745) Telemetry, evaluation and information enhancements Smart Grid Dynamic Pricing 8

9 Smart Grid Vision In PSC Smart Grid proceeding, NYISO comments focus on need for Smart Grid to: Lower costs and expand consumers understanding and control of their electricity use Enhance the reliability and efficiency of the power system by improving grid operators situational awareness and control Assist the growth of renewable resources and complementary energy storage resources 9

10 Dynamic Pricing NYISO/Brattle Group Study Dynamic pricing can encourage shift to off-peak usage -- potential 10-14% reduction in system peak Market-based customer cost reductions of 2 to 5 percent ($171M to $579M per year -- excluding metering deployment costs) Impact of Dynamic Pricing on Hourly Loads 10

11 Research Needs Dynamic Pricing Load Forecasting improvements price as a variable in load forecast Limiting volatility in operations and pricing associated with real time customer price response Communication technologies (wide area and local area) Local area energy management systems 11

12 Self-Optimizing Customers Model Structure & Components Components On-site generation Fuel cell PV cells Storage Thermal storage Connection to Grid 12

13 Research Needs (cont.) Self-Optimizing Customers Minimizing cost of supply Maximizing revenues from feed in to the grid Maximizing utility (heat, air conditioning, commercial process) Local Energy Management System Measurement and Verification 13

14 The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state s bulk electricity grid, administering New York s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. 14