Demand Response Past, Present and Future

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1 PRESENTED BY: 1

2 Demand Response Past, Present and Future Willie Grove Rodan Energy Solutions As Director of Business Development, Willie Grove leads Rodan Energy s BD efforts in Demand Management around North America. Regularly published, he recognized as the subject matter expert for customers of all sizes wishing to maximize their opportunity in these programs. 2

3 1. What is Demand Response (DR) A Short Term reduction of stress from the grid when needed. May or may not actually save KWh. A less expensive alternative to peak generation plants usually fuelled by CO2 emitting fuels. Useful in balancing supply and demand in markets of high renewable energy fuel sources. 3

4 2. Demand Response - Past Demand Response- Past, Present and Future It has been present in one form or another for many years. Interruptible rates. Operating Reserves. Ancillary Services. Demand Response 1, 2 and 3 in Ontario brought DR into the mainstream starting in the early 2000 s and allowed participation to expand to may more types of business. Peak Saver Residential Program 4

5 2. Demand Response - Past Demand Response - Past, Present and Future DR 3 becomes main Ontario Program from Contractual with 4 hour curtailments 50KW and above contributions All types of business can participate Approx 400 MW in this program launch of Global Adjsutment (GA) program for Class A sites - voluntary 5

6 3. Demand Response - Present DR 3 becomes CBDR and transfers to IESO management 2014/15 DR 2 cancelled and participants rolled into CBDR if desirable IESO develops plans for new DR products via 2015 DR Pilot Approx 80 MW awarded in this pilot to test both fast acting and hourly Demand Response options Largest change in the Pilot the requirement to participate for 100 hrs per year or more. Pilot to start delivering into the market as of May

7 3. Demand Response - Present Planning begins for first DR Auction to take place Dec 2015 All CBDR contracts ending Dec 31, 2014 and after extended to May and will participate in this auction. Approx 370 MW available Auction will set price for one year s worth of DR from May to April Yearly Auctions of follow Auction Clearing Price can be different from one region to another. 7

8 3. Demand Response - Present Direct Participation now lowered to 1 MW of DR but participation is far more complicated. Participants will take part in real time energy market and be dispatched or asked to reduce based on their bids. Year round daily management now required. Participation is now based on two commitment periods: Summer May thru Oct Winter - Nov Thru April New opportunities for seasonal accounts arenas or accounts that only have summer/winter curtailable load 8

9 Demand Response - Future Existing CBDR Contracts ending after May 2016 are rolled into the next applicable auction. Auction MW s available can be increased as IESO determines system need. Long Term Energy Plan (LTEP) targets 2500MW of total DR by 2025 (doubling). Expect increased need as more renewables come on line and decisions made about Nuclear refurbishments. DR targeted to take part ion capacity market auctions starting approx

10 Demand Response - Want to know more Contact an Aggregator, Rodan continues to prepare customers for auction participation. We can help you find a way to participate. We can estimate the $ available in your area. Can you curtail for 100 hrs per year? If so there is still DR Pilot space available for the next two years. 10

11 About Rodan Energy Solutions Rodan Energy is Canada s largest Demand Response provider with experience in all market segments. Rodan has extensive metering, Energy Management Information Systems (EMIS) through its own Meter Service Provider (MSP) portfolio and its subsidiary's Midas Metering and Energent Inc Ontario Energy Association (OEA) Small Company of the Year 2015 Top 100 Canadian Small and Medium Employers Mississauga based with offices around Ontario, Calgary, Alberta and Houston, Texas Questions 11

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