This is really exciting news (If you can get past the jargon). What this means is that demand response, will have the same value as peak energy production as an energy resource. If a utility needs to meet peak demand they can buy that capacity on the ISO market either from a peaker power plant (dirty and expensive) or from a company that can reduce consumption (say turn off AC units or dim lights).
This is a huge advance toward energy efficiency as a resource. While initially this will almost entirely impact the commercial space, there is every reason to believe that this beach head will lead in the future to other sectors.
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ISO-NE Proposes Demand-Response Rules
Updated September 20, 2011
In compliance with the Federal Energy Regulatory Commission's (FERC) Order 745 on demand-response compensation in competitive markets, ISO New England (ISO-NE) says it has filed proposed market rules that will result in the full integration of demand resources into system operations and energy markets by June 2015.
Behind-the-meter generation will continue to be eligible to provide demand response in New England if the proposed rules are accepted by FERC. The ISO believes its proposed market rules would comply with all aspects of FERC's Order 745, Final Rule on Demand Response Compensation in Organized Wholesale Energy Markets.
The ISO proposal calls for a transition period that would allow the region to continue to offer, with some revisions, the existing programs that allow demand-response providers to participate in the region's energy markets. The transition period would end in 2015, when the proposed rules for full integration of demand resources would take effect.
The ISO's first demand-response programs were implemented in 2001, with 63 MW participating. Currently, almost 2.8 GW of all types of demand resources, including energy efficiency, are available in New England.
ISO-NE's proposal is subject to FERC approval.
This is a huge advance toward energy efficiency as a resource. While initially this will almost entirely impact the commercial space, there is every reason to believe that this beach head will lead in the future to other sectors.
--------------------------
ISO-NE Proposes Demand-Response Rules
Updated September 20, 2011
In compliance with the Federal Energy Regulatory Commission's (FERC) Order 745 on demand-response compensation in competitive markets, ISO New England (ISO-NE) says it has filed proposed market rules that will result in the full integration of demand resources into system operations and energy markets by June 2015.
Behind-the-meter generation will continue to be eligible to provide demand response in New England if the proposed rules are accepted by FERC. The ISO believes its proposed market rules would comply with all aspects of FERC's Order 745, Final Rule on Demand Response Compensation in Organized Wholesale Energy Markets.
The ISO proposal calls for a transition period that would allow the region to continue to offer, with some revisions, the existing programs that allow demand-response providers to participate in the region's energy markets. The transition period would end in 2015, when the proposed rules for full integration of demand resources would take effect.
The ISO's first demand-response programs were implemented in 2001, with 63 MW participating. Currently, almost 2.8 GW of all types of demand resources, including energy efficiency, are available in New England.
ISO-NE's proposal is subject to FERC approval.
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