1 New England Demand Response Resources: Present Observations and Future Challenges Henry Yoshimura...

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New England Demand Response Resources: Present Observations and Future Challenges

Henry YoshimuraDemand Resources DepartmentISO New England, Inc.Holyoke, MassachusettsFebruary 17, 2008

© 2008 ISO New England Inc.

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320 mi.

400 mi.

New England’s Electric Power System

• Six-state region: CT, ME, MA, NH, RI, and VT

• 14 million people; 6.5 million households and businesses

• All-time actual peak demand: 28,127 megawatts on 8/02/06

• Over 33,000 megawatts of existing resources– ~350 generators/power plants

– ~8,000 miles of transmission lines

– 12 interconnections to neighboring systems

– ~2,600 Demand Resource assets ~ 1,700 MW of capacity


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Demand Response Program Types• Reliability (Demand) Programs:

– Customers respond to System Reliability Conditions as determined by the ISO New England System Operators

• Price Programs:– Customers respond to Real-Time Prices as determined by the

Market. – Customers can submit “offers” to reduce their load next day

based on Day-Ahead Wholesale Market Prices

• The recently implemented Forward Capacity Market (subject of next panel) enables Other Demand Resources (“ODRs”) to participate in the wholesale capacity markets.– Energy efficiency, load management, baseload distributed

generation.


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Demand Resources Enrolled MWs: 1/2004 – 1/2008


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Today’s Real-Time Demand Response Program

Who? Individual or Groups (Minimum 100 kW Reduction)

When? Respond to ISO System Operator dispatch instructions to address real-time capacity deficiency (OP4)

How fast? Within 30-Minutes or 2-Hours of ISO request

How much?

Energy Payment: Greater of Real-Time Wholesale Price or Guaranteed Minimum $0.50/kWh for 30-Minute Response and $0.35/kWh for 2-Hour ResponseCapacity Payment: Monthly payment ($/kW) based on Forward Capacity Market Settlement Agreement

How long? Minimum 2-Hour guaranteed interruption

Metering? 5-Minute Usage data sent to ISO NE via the Internet-Based Communication System or Customized Measurement and Verification plan


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Demand Response Events August 2006

• Demand Response resources were activated on August 1st and 2nd in response to OP4 Actions.

• August 1, 2006– Some Reliability Programs Activated.– Activations started at 3:45 P.M. and ended at 7:00 P.M.

• August 2, 2006– All Reliability Programs Activated.– Activations started at 12:15 P.M. and ended at 6:00 P.M.

• Maximum Load Reduction from Reliability Programs of 528.8 MW achieved at 4:10 P.M. on August 2, 2006 (based on 5-minute data).– Actual system peak demand of 28,127 MW would have been higher

without demand response.


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Breakdown of 528.8 MW by Region and Resource Type

Region MW %Maine 115.6 21.9%NEMA 21.1 4.0%New Hampshire 1.0 0.2%Rest of Connecticut 136.3 25.8%SEMA 4.2 0.8%Southwest Connecticut 217.0 41.0%Vermont 16.9 3.2%WCMA 16.7 3.1%Grand Total 528.8 100.0%

Resource Type MW %AC Direct Load Control 14.6 2.8%Emergency Generation 183.7 34.7%Load Reduction 145.7 27.6%Load Reduction and Emergency Generation 184.8 34.9%Grand Total 528.8 100.0%

Based on preliminary 5-minute data from Demand Response resources with Internet Based Communication Systems reporting to ISO-NE at the time this report prepared


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August 2, 2006 Performance30-Minute Real-Time Demand Response without Emergency Generation

60.0

70.0

80.0

90.0

100.0

110.0

120.0

12:3

012

:45

13:0

013

:15

13:3

013

:45

14:0

014

:15

14:3

014

:45

15:0

015

:15

15:3

015

:45

16:0

016

:15

16:3

016

:45

17:0

017

:15

17:3

017

:45

Time

MW

Interruption

Enrolled

Note: Graph does not include a 10 MW resource that had data reporting problems


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150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

13:3

013

:40

13:5

014

:00

14:1

014

:20

14:3

014

:40

14:5

015

:00

15:1

015

:20

15:3

015

:40

15:5

016

:00

16:1

016

:20

16:3

016

:40

Time

MW

Interruption

Enrolled

August 2, 2006 Performance30-Minute Real-Time Demand Response with Emergency Generation

Note: Dip at 15:40 caused by one large resource that tripped off line and recovered


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ISO-NE – Total Load Impacts on 8/2/06Actual, Forecasted and Projected Actual with and without Demand Response

16000

18000

20000

22000

24000

26000

28000

1:00

2:00

3:00

4:00

5:00

6:00

7:00

8:00

9:00

10:0

011

:00

12:0

013

:00

14:0

015

:00

16:0

017

:00

18:0

019

:00

20:0

021

:00

22:0

023

:00

0:00

Time

To

tal L

oad

(M

W)

Forecasted Load Projected Actual Load w/o DR effect Actual Load

30-minute RT Action 9 restored

OP Actions 9 cancelled

OP 4Action 12

OP 4Action 9 30-minute RT

Action 12 restored

OP 4 Action 12 cancelled

30-minute RT (Action 12)

30-minute RT (Action 9)

Preliminary Peak of 28,048 MW at HE 14

© 2006 ISO New England DRP 08/04/06


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Present Observations and Future Challenges

• Demand response resources have performed well to date and have enhanced system reliability.

• Demand response event hours have been limited to date.• Enabling demand response resources to participate in

wholesale markets enhances competition and market efficiency and reduces market power concerns.

• The increased volume of Demand Resources participating in the wholesale electricity markets presents operational and planning challenges.– Over 2,500 MW of Demand Resource capacity cleared in

Forward Capacity Auction #1 (subject of next panel).

– As Demand Resources grow in proportion to total resources, they will be relied upon to maintain system reliability.


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ISO Operations and Planning Issues

• The number of demand response event hours and the amount of demand response clearing in capacity markets are not independent.– As demand response resources replace generation, there will

be fewer generators available to satisfy the load and reserve requirements.

– Load reductions from demand response resources will be called upon more frequently to maintain the reserve requirements for a given expected load level.

– In other words, as demand response replaces generation, the more frequently it will be used.

• As event hours expand, how well will demand response resources perform?– Permanent load reductions are not as susceptible to these

performance issues.

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