Measurement, Verification, and Forecasting Protocols for Demand Response Resources: - PowerPoint PPT Presentation

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Measurement, Verification, and Forecasting Protocols for Demand Response Resources:

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Estimating Demand Response Market Potential among Large Commercial and ... Customer Response to Day-Ahead Market Hourly Pricing: Choices and Performance, LBNL-58114. ... – PowerPoint PPT presentation

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Title: Measurement, Verification, and Forecasting Protocols for Demand Response Resources:


1
Measurement, 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

2
Why 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
3
Role 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

4
Measuring DR Impacts Establishing Customer
Baseline is Key
5
DR 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
6
DR 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?

7
DR 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.

8
Background slides
9
Definition 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

10
Demand 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)

11
Electric System Planning Operations
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