As part of the Independent System Operator - New England's (ISO-NE) FCM effort, the Demand Response program is split into two major categories for receiving payments for load management efforts at a facility or municipality: Real Time Demand Response (Emergency Generation/Load Curtailment) and On-Peak reduction (also known as On-Peak Passive Demand Response).
Emergency Generation/Load Curtailment
Demand Response is an award-winning program that every large electricity-consuming facility should consider. In essence, the facility commits to reducing electrical load on its demand from the grid operator (ISO-New England). If the facility can shed 100 kW (or more) within 30 minutes of notification, and maintain the shedding for a few hours, ISO-NE will pay an incentive to the facility. The shedding events normally coincide with the hottest days of the year, but Demand Response events are also called during cold winter months as high demand for gas increases costs for large generating plants. Real emergency events are rare and the last event was called in 2006, but test events are called twice per year (one in the summer and one in the winter).
The Division of Capital Asset Management and Maintenance (DCAMM) has a state-wide contract in place with an Enrolling Participant (CPower, Inc.) who will survey the facility for program potential, enroll the facility in the program, arrange for metering, and coach them in how to perform. DCAMM also maintains an expendable trust through which the earnings are passed back to the enrolled facilities that performed. The program has earned in excess of five million dollars since its inception. The expectation is the revenue will increase significantly due to accelerated closure of very large electric generating plants.
Facilities with robust control systems and savvy managers can also use CPower to participate in the ISO's day-ahead market. Interested facility managers should discuss this lucrative program with CPower to determine if it's right for them.
For more information on ISO-New England's Demand Response program, please go to: http://www.iso-ne.com/genrtion_resrcs/dr/index.html
State facilities, authorities and municipalities interested in using this contract should contact Dave Lewis at 857-204-1472 (Direct) or Dave.Lewis@state.ma.us.
For a copy of the contract for the Demand Response program go to the following CPower Contact link file size 9MB , or see this link to refer to the Contract User Guide for FAC 89
The On-Peak program is another ISO-New England program that is designed to support the future electrical needs of the region. What this means for our facilities is that the ISO will pay for reduction of that future need, either through installation of energy efficient systems, use of co-generation, or use of renewable energy products. Projects that would typically qualify well for this type of program include energy conservation improvement projects done by facilities which can include new lighting projects, renewable energy installations or fuel switching (electric to gas heating). DCAMM will register these type projects with the ISO on behalf of the facilities, and return the earnings to them via the expendable trust.
For more information on ISO-New England's FCM program, please go to: http://www.iso-ne.com/markets-operations/markets/demand-resources/about or contact Dave Lewis.
While DCAMM has some awareness of the type projects that would qualify, facilities may complete these projects on their own. Contact Dave Lewis if you have completed such a project, and to assess next steps for enrollment in the program.