Summer is Coming: Will you participate and benefit from Demand Respond?
In its essence, Demand Response (DR) is your reaction to electricity market signals, either projected or in real-time. This reaction can be reducing your energy load or pushing energy back into the grid. These signals may appear as:
- High ERCOT coincident peaks
- ERCOT demand response events
- Retail supplier demand response program events
- Utility load shedding programs
- High market prices
The primary goal here is to take advantage of these signals, either by shedding the load or by pushing the load back onto the grid when feasible.
The Lucrative 4CPs of DR
Arguably the most rewarding demand response is during the four coincident peaks, also known as the 4CPs. Given the increasing utility 4CP billing determinants, the value of 4CP has surged, approximately reaching $70,000 per megawatt shed. However, values can differ across utilities such as CenterPoint, Encore, and AEP. The beauty of this? You can handle this demand response independently, and the monetary gain manifests as a reduced regulated distribution cost for the year. Key months to watch are June through September.
ERCOT vs. Utility-sponsored Programs
While both offer demand response opportunities, one cannot participate in both simultaneously. Among the most sought-after programs is the ERS-30, allowing consumers a 30-minute window to diminish their contracted load. Utility-sponsored programs offer summer and winter programs, which might be more financially rewarding than ERCOT ERS programs, but they do come with limited annual funds.
Other Demand Response Opportunities
Retail Electric Provider (REP) Sponsored Programs: Here, an REP benefits from not having to provide contracted power, selling back this power during high-priced market events.
Asset Dispatch during High-price Events: If you own assets, like a generator or battery storage set up to channel power back to the grid during high-market price intervals, this can be a lucrative option.
In conclusion, the route you take hinges on your capabilities as a consumer, your comfort level, and the provisions of your retail contract. While these decisions require careful thought, the outcome can lead to substantial savings in your overall energy expenses.
At Acclaim, we are dedicated to helping businesses navigate these choices, deciphering technical terminologies, and assisting in making well-informed decisions aimed at cutting down your energy expenditures. For a deeper understanding or queries, reach out to us at 713-524-0250 or drop by our website at acclaimenergy.com.
