Can Today's Demand Response
Programs Support Integration of
Renewable Energy onto the Grid?
An Analysis of California Programs
and CAISO Requirements
Stuart Schare
Director, Energy Practice
National Town Meeting on Demand
Response and Smart Grid
Washington, DC
July 11, 2013
D I S P U T E S & I N V E S T I G AT I O N S • E C O N O M I C S • F I N A N C I A L A D V I S O RY • M A N A G E M E N T C O N S U LT I N G
Most DR Programs Are Not Designed
to Provide Ancillary Services
 “Reliability” DR programs are larger &
more common than “price-responsive” or
“economic” DR

Fewer programs with fewer MW have
attributes that may be able to provide
energy or ancillary services

Smallest subset of all might have attributes
needed to provide regulation-up services
(much less reg-down)
Can Existing IOU DR Programs in California
Provide Renewables Integration Services?
An initial test is whether they meet CAISO requirements for ancillary
services:
 Advance Notice of Deployment
 Speed of Response
to Control Signal
 Duration of Response
 Frequency of Response
 Range of Permissible Deviation
Sources: CAISO and various California studies
Ramping and load following services to support renewables integration may
be less onerous
Current IOU DR programs in California have limited ability
to meet CAISO ancillary services requirements



Event duration is generally
sufficient
Other requirements met by
few programs
Precision of delivered load
drop (“deviation”) is
problematic, especially for
fast response
California DR programs—as a portfolio—are a long way
from being able to provide ancillary services
 On average, across
programs, DR cannot
provide even non-spinning
reserves
 But maybe some individual
programs could support
renewables integration…?
A few DR programs come close to having the attributes needed to
provide non-spinning reserves
Could DR programs be modified to provide renewables
integration services?
 Program-by-program assessment of potential modifications
 Modifications could not change the fundamental nature of a program
 Modifications may reduce the number of customers willing/able to participate in DR
 Key modifications:
 Telemetry for real-time communications, metering, and control
 Automated response to control signals
 Reduced/no advance notification time
 Increased frequency with which DR resource could be dispatched.
Modifications could significantly increase the ability of
the average program to meet CAISO AS standards


Increase is most significant for
spinning and non-spinning
reserves
On average, programs still fall
short of CAISO standards
Some programs could be modified to meet CAISO nonspinning reserve requirements

Five programs could meet all
requirements
 Aggregator programs (3)
 Agricultural pumping
 Customer-sited generation
 Most program would be deficient in
just one or two attributes (deviation
and…?)
Typical DR program structures are not well-suited
for precise response in minutes or seconds

A few likely can provide non-spinning reserves

Slightly fewer meet spinning reserve requirements

Regulation requires special equipment and
characteristics that will limit DR’s applications—but how
much do we need?
New DR programs could be designed specifically to provide
renewable energy integration services
Attributes
Required
Telemetry
Continuous Ramping/
Load Following
Automated
response
Spinning & Non-Spinning
Reserves
Required
Regulation Services
Required
Less than one hour, but
some could be up to 10
hours
Less than 10 minutes; less
than 10 second to begin
ramping is desirable
Seconds
Event limitations
10 hours or more duration,
minimum of one hour
Dozens to more than 100
events lasting at least one
hour each
Continuous availability
desired
Daily/seasonal
availability
24x7 year-round, with
seasonal variation
24x7 year-round
24x7 year-round
Target end uses
Commercial lighting and
HVAC
Agricultural and municipal
pumping, electric water heat
Temperature controlled
warehouses, industrial
motor loads on VFDs
Response time
Key
CONTACTS
ENERGY
Stuart Schare
Director | Energy
stuart.schare@navigant.com
303.728.2504 office
©2010 Navigant Consulting, Inc. .
©2012
Confidential and proprietary. Do not distribute or copy.
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