Demand Response Programs
Every large electric customer in New York State can choose to get paid for lowering electricity usage during periods of high-demand on the electricity grid.
The "Demand-Response" programs offers incentives to lowering electricity demand as a response to a notification.
In New York State, the Demand-Response programs are administered by the New York Independent System Operator (NYISO).
NYISO has four Demand Response programs: the Emergency Demand Response Program (EDRP), the Installed Capacity (ICAP) Special Case Resources (SCR) program, the Day Ahead Demand Response Program (DADRP) and the Demand Side Ancillary Services Program (DSASP).
These programs offer differing terms and payments, and are open to all types of customers. Participation requires a detailed understanding of the program criteria, including how fast you must reduce electricity demand, how much reduction you are committing to, the duration of the reduction period, and the payment terms. Click here for a NYISO Primer of the Demand-Response Programs.
The following are descriptions extracted from NYISO's Demand Response Programs Website.
|Emergency Demand Response Program (EDRP)||This program is a short-notice program relying on the ability of many participants to voluntarily reduce their electricity demand for a short period of time, in exchange for payment. Under energy shortage situations on the New York State power grid, participants are notified by NYISO to reduce power usage. Participating in each deduction event are voluntary.|
|ICAP Special Case Resources (SCR)||Participants in this program are required to reduce power usage and as part of their agreement and are paid in advance for agreeing to cut power usage upon request. Any under-performance results in an assessment of a penalty. To register for the program, participants commit to a load reduction of a minimum of 100 kW with 100 kW increments, when provided with a 21-hour advanced notice..|
|Day Ahead Demand Response Program (DADRP)||This program allows sophisticated energy users to bid reduction in electricity usage, or "negawatts", into the Day-Ahead energy market similar to the large electricity generators. Reduction offers determined to be economic are paid at the price determined by the market and are not set by NYISO.|
|Demand Side Ancillary Services Program (DSASP)||This program provides retail customers that can meet telemetry and other qualification requirements with an opportunity to bid their load curtailment capability into the DAM and/or Real-Time Market to provide Operating Reserves and regulation service. Scheduled offers are paid the appropriate marketing clearing price for reserves and/or regulation.|
Unless you are a large electricity user and understands the complex program requirements, participation in Demand-Response through an "Aggregation Provider" (Aggregator) is recommended. If you are a small electricity user, you are required to participate through an Aggregator to consolidate demands from many small users to reach the minimal level of participation level.
A list of Aggregators is available here.
Participation Through Utilities
NYSEG are offering CA$HBACK and CA$HBACK plus EDRP that reward businesses for reducing their electrical load during specific curtailment periods. CA$HBACK offer the participants the opportunity to voluntarily reduce electricity load for payment. Participants are not obligated to reduce electricity use each time CA$HBACK is implemented and there are no penalties.
CA$HBACK payments are typically 45 cents per kilowatt-hour (kwh) or more for each kwh not consumed.
CA$HBACK plus requires participants to reduce electricity load in exchange for a guaranteed payment. NYSEG will credit participant's bill based on the price per kilowatt hour (kwh) for the curtailment period and the number of kwh not consumed.
NYSEG customers who sign up for CA$HBACK plus must have a minimum of 100 kilowatts of curtailable load or "behind-the-meter" generation. They will receive advance notification of the need to reduce electricity use and must curtail load for at least four hours per request.
A CA$HBACK plus contract lasts 6 months. (The winter contract period is November through April and the summer contract period is May through October). A one hour test is required during the contract period to test participant's load reduction.
Customers using self-generation to reduce load must meet Department of Environmental Conservation regulations and permitting.
Contact NYSEG marketing representative to determine if CA$HBACK or CA$HBACK plus are right for you.
Visit NYSEG's CA$HBACK and CA$HBACK Plus website here.
NationalGrid offers EDRP and DADRP demand response programs.
Similar to NYSEG's EDRP, NationalGrid EDRP is for companies that can curtail at least 100 kW of electricity one hour after receiving a notification. Incentive payments will only be made to program participants if power use is actually curtailed.
Visit NationalGrid's EDRP website here.
NationalGrid's DADRP is for companies that has the expertise to submit bids to reduce load to the NYISO when day ahead electricity prices are forecast to be high. Participants supply load reduction bids to NationalGrid for submition to the NYISO or aggregate with other customer bids and submit to the NYISO.
Bid submissions will include the following:
•The level of reduction available, inclusive of losses.
•Customer specification for the Day-Ahead Location Based Marginal Price above which they will reduce their load.
Bids may be revised once per week, and companies can elect not to participate during any given week by submitting a 'no bid' request.
If a participant's bid is accepted by the NYISO, NationalGrid will notify the participant by 5 p.m. prior to the day of curtailment. Failure to perform will result in financial penalties.
Visit NationalGrid's DADRP website here.