Customers are entitled to compensation for being on call to lower your energy usage when the electrical grid is stressed and at risk of failure. Grid operators rely on these types of programs to ensure “black outs” do not occur + participation in these programs allows states to avoid building “peaker power plants” which would normally be needed when electricity shortfalls occur.
Although grid stress occurs rarely (typically only 1-2 times per year in most regions), the revenue associated with participation can be significant and can lower your electricity bills by up to 20%!!!
When enrolled properly, Demand Response participation is a powerful energy management tool that customers use to lower their overall energy cost. This is NOT “found money”, it is revenue you are entitled to for managing your energy-use effectively.
To participate in these programs your organization has to work with a Demand Response Provider (DRP) who acts as a liaison between your company and the grid operator/utility company. Typically, they will take the committed load you can reduce when called upon and enroll this in the energy markets on your behalf. However, to provide this service, DRP’s take a percentage of what your organization earns. Further, the terms and conditions vary widely with enrollment as well as the %’s that are offered. Demand Response Providers are “for profit” companies and thus they have a vested interest in providing contracts that benefit them – but we can help tip the scales in your favor…
Tesla Energy Advisors has a simple 5 step process to get you participating in no time!
- We pull your historical usage, and identify your curtailment “baseline” according to the rules set by the Grid Operator
- We identify how much load you can curtail
Provide “Revenue Estimate” to you- Craft RFP that takes into account your business goals and objectives around Demand Response participation (strictly revenue based, technology considerations, additional services that may be provided, etc.)
- Get bids from all Demand Response Providers (DRP’s), review and sign up!
Tesla Energy Advisors has Demand Response experts on staff that has literally enrolled hundreds of customers in these programs all over the country. In fact, we have worked with some of the largest companies all over the country including Pfizer, Boston Beer, Alpha Natural Resources, VA Hospitals Yeshiva University, DuPont Fabros Technology, GSA, etc., etc. If you want genuine expertise from consultants that have enrolled companies in literally EVERY Independent System Operator/Utility Program throughout the country, then we are your solution.
Depending on your locations, there are many different types of Demand Response programs available for customers. Don’t worry, we will explain them so they are simple to understand and can get you enrolled quickly while mitigating risk and maximizing revenue with participation (examples below).
| MARKET | PROGRAM | NOTIFICATION | EVENT DURATION | HISTORICAL FREQUENCY | AVG. EVENT LENGTH | METERING | $MW/YR |
| New York (NYISO) | CAPACITY | 20 Hours & 2 Hours | 4 Hours | 1-2 Times per year | Max 20 Hours | 15 Minutes | $107 in NYC $25k all other |
| New York (NYISO) | RESERVES | 10 or 30 minutes | ~15 minutes to 2 hours | ~8 times a year | new program | TBD | $48 ZEastern NYS $37 Western NYS |
| New York (NYISO) | ECONOMIC | Day ahead or 1 hour notification | Multiple hours TBD by customer | TBD by customer | TBD by customer | 60 minutes | $0.50 per kWh + full LMP |
| New England (ISO-NE) | CAPACITY | 30 minute or 2 hours | 2-4 hours | 1-2 times per year | average 4 hours | 5 minutes | $51k without gen. $35k with gen. |
| New England (ISO-NE) | ECONOMIC | Day ahead or morning of | Multple hours TBD by customer | TBD by customer | TBD by customer | 60 minutes | $0.50 per kWh + full LMP |
| Mid Atlantic (PJM) | CAPACITY | 2 hours | Up to 6 hours | 1-2 times per year | Average 4 hours | Utility/15 minutes | $40k |
| Mid Atlantic (PJM) | RESERVES | 10 Minutes | Upto 30 minutes | ~ 12 time a year | ~6 Hours per year | 5 Minutes | $40k |
| Mid Atlantic (PJM) | ECONOMIC | Day ahead or Real-Time (1 hour notice) | Multiple hours TBD by customer | Mainly summer months | Varies depends on strike price | 5 minutes | Full LMP |
| ATSI Territory | CAPACITY | 2 Hours | 2-4 Hours | 1-2 Times per year | Average 4 hours | Utility/15 minutes | $39k |
| California - Capacity Building | CAPACITY | Day-ahead | Client choice: max of 2, 6 or 8 hours | ~12 times in 3 months | varies by utility: ~20-50 hours | Utility/15 minutes | $60k |
| California - SCE Annual | CAPACITY | Day of: 2 hours | 1-4 hours | Max 96 hours per year | 12 times; 44 hours | Utility/15 minutes | $76k |
| Texas (ERCOT) | CAPACITY | 10 minute | Up to 4 hours | "once in 10 years" | new program | 15 Minutes | $66k |
| Texas (ERCOT) | ECONOMIC | 10 minute | 30 minutes to 3 hours | 1-2 times per year | new program | 1 minute | $105k |
Tesla Energy Advisors works with customers who are already participating in Demand Response programs as well as folks that are new to this product. Our services include:
- Maximizing the revenue, you can earn with a clear and transparent process
- Creating a realistic “curtailment plan” for your organization. This includes identifying what load can be reduced
- Providing expected financial projections
- Crafting the requisite technical RFP for these services that have terms and conditions that are favorable to your organization
- Ensuring that you are paid correctly for the full amount of load you curtail
- No cost for these services to your organization