Title: Measurement, Verification, and Forecasting Protocols for Demand Response Resources:
1Measurement, Verification, and Forecasting
Protocols for Demand Response Resources
- Chuck Goldman
- CAGoldman_at_lbl.gov
- Lawrence Berkeley National Laboratory
- NARUC-FERC Demand Response Collaborative
- Washington DC
- February 18, 2007
2Why is DR MV and forecasting important?
Entity Perspective
Customer/Load Aggregator Payments for customer-specific impacts Settlements timely, transparent
Regulator (PUCs) Program-wide load impacts are key input to B/C analysis Resource Plan
System Operator (e.g., ISO,RTO, Utility) Capacity Resource adequacy? Reserves Emergency Keep lights on? Energy Markets Can DR resource mitigate price volatility? Real-time operational needs? Transmission planning/expansion Can DR resource projects defer/meet needs in congested areas?
Utility/LSE Resource planning Defer peaking generation
3Role of DR in Electric Power Systems
- DR options include price-based DR (time-varying
electricity tariffs) and incentive-based DR
(programs that pay for load reductions) - Incentive-based DR dispatchable event-based
- Linkage between retail rate design/DR programs
and wholesale market design/structure
4Measuring DR Impacts Establishing Customer
Baseline is Key
5DR MV Protocols Standardization vs. Flexibility
MV Approach Recommendations
Incentive-based DR programs Representative day baselines for population Event day adjustments For Residential and small C/I, need sample of customers with interval meters Use Default Baseline Method (Average of last 10 non-event days) with Alternatives Additive scalar adjustment to align with known conditions on curtailment day (e.g. 2 hrs prior) Alternative Methods can account for load characteristics (e.g. weather-sensitive) and operating practices
Price-based DR (e.g. RTP, TOU) No events No CBL Regression-based models
6DR Measurement/Verification and Forecasting
Challenges Issues
- Significant diversity among DR Resources
- MV methods may vary Default with Alternatives
- DR Load impacts for Customer settlement vs. B/C
tests and resource planning - MV Protocols Standardization vs. Flexibility?
- ISOs have made progress (across product markets
mass market) -
- Firming up the DR resource?
- Price-based DR (RTP, CPP, TOU) rarely treated as
a resource - Events are rare Role of periodic testing of
resource capability? -
- Linking DR program evaluation results to Market
Potential and forecasting assessments?
7DR MV Resources References
- KEMA-XENERGY, 2003. Protocol Development for
Demand Response Calculation Findings and
Recommendations, Prepared for California Energy
Commission, CEC-400-02-017F, February. - Summit Blue Consulting LLC. and Quantum
Consulting Inc., 2006. Protocols for Estimating
the Load Impacts from DR Program, Prepared for
CPUC/ CEC Working Group 2 Evaluation Committee,
April 3. - LBNL Electricity Markets and Policy Publications
http//eetd.lbl.gov/ea/EMS/drlm-pubs.html - Goldman, C. et al., 2007. Estimating Demand
Response Market Potential among Large Commercial
and Industrial Customers A Scoping Study,
LBNL-61498, January. - Hopper, N. et al., 2006. Customer Response to
Day-Ahead Market Hourly Pricing Choices and
Performance, LBNL-58114. June.
8Background slides
9Definition of Demand Response
-
- Changes in electric usage by end-use customers
from their normal consumption patterns in
response to changes in the price of electricity
over time, or to incentive payments designed to
induce lower electricity use at times of high
wholesale market prices or when system
reliability is jeopardized. - - Benefits of Demand Response in Electricity
Markets, U.S. Department of Energy -
10Demand Response Resources Classification
- Incentive-based Programs
- Direct Load Control (DLC)
- Interruptible/curtailable rated (I/C)
- Demand bidding/Buy-back programs (DB)
- Emergency Demand Response Programs (EDRP)
- Capacity Programs (CAP)
- Ancillary Services markets program (A/S)
- Time-based rates
- Time-of-use (TOU)
- Critical peak pricing (CPP)
- Real-time pricing (RTP)
11Electric System Planning Operations