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Learn about PG&E's innovative demand response pilot program for wholesale markets, customer recruitment, pilot characteristics, lessons learned, and upcoming steps.
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Overview • Regulatory Context • Pilot Characteristics • Lessons • Next Steps
Participating Load Pilot Can we create demand response for the wholesale market with the attributes of supply side alternatives?
“What is Participating Load?” • Load acting as a resource to: • Participate in the wholesale market and offer ancillary service and energy products • Load resource must be scheduled daily on an hourly basis, even without the DR load reduction: • Separated from overall load schedules • Must meet all CAISO technical specifications; e.g., 5-minute settlement metering, 10-minute responses, 4-second real time demand meter data, etc…
Customer recruitment: Retail (HVAC), Industrial (Process),Local Gov. Office (HVAC) No co-generation or back up generation Already on Auto-DR Pilot Characteristics CAISO ADS • Customer benefits: • Receive Capacity + Energy (if called) incentives • Able to receive real-time data • Convenience and ease by having pre-determined load shed strategies; peace of mind
Pilot Characteristics For real time meter data, PG&E used real time equipment to harvest meter data from end use sites transmit to the CAISO. Transmit meter data in 4-seconds. Communication must be running at all times even without DR bids. Setup node points in CAISO’s EMS and Full Network Model (FNM) database. For notification of a dispatch events, once CAISO initiates the event, Auto-DR triggers the customers’ pre-determined load shed strategies within the customers’ EMS and sends an email alerting the customer of an event.
Pilot Operations • Pilot ran from July 29th to October 31st • Day-Ahead Non-Spinning • Bid during Monday – Friday • Bid in as both contingency and economic
Lessons: Technology • Successful system integration: • Real-time (4-second instantaneous) data delivered from customers site to CAISO EMS systems • Seamless dispatch from CAISO to customers • Customers did not recognize that an event was dispatched • Feedback mechanism control between Auto-DR server to customer
Lessons: Operations • Customers responded when called by the CAISO • On average, resources were able to respond within 4 minutes of receiving the dispatches • A total 16+ hours were called for non-spinning reserves • More experience should lead to less forecasting errors
Lessons: End Use Resources • Retail and office building customers are ideal candidates • Dominant use of HVAC load • Industrial participant less predictable • High customer satisfaction: • Since everything was automated, customers felt participation was easier • Events were relatively short and not disruptive
Next Steps • 2Q 2010: Continue to work on rules surrounding direct participation with the CPUC • 3Q 2010: CAISO is scheduled to release and operate “Proxy Demand Resource” which will allow direct participation • 1Q 2011: Field study for pilot demonstration on intermittent renewables • 1Q 2011: Submit 2012 – 2014 DR portfolio proposal to CPUC. Portfolio will include programs that will have mechanism for bidding into wholesale market
Questions Steve McCarty Director – IDSM Portfolio Optimization & Metrics PG&E SJM8@PGE.COM