Demand Response
Overview
In markets which are transitioning to wholesale and retail electric competition, perhaps the most critical issue is maintaining sufficient peak capacity to ensure reliability. This is particularly an issue in ERCOT, an “energy-only market,” but it is true in “capacity markets” as well. Most stakeholders agree, in theory, that demand response is the element required to make each market function as intended. Demand response is often the most cost-effective means to meet the last increments of load on peak days and can also be utilized to aid system operators in responding to reliability events year-round. In addition demand response can increase the price elasticity of demand in the market, reducing the severity of price spikes and muting the exercise of market power, generally benefiting all customers.
Practice Areas
Overview
Market Research and Business Development
Legislative and Regulatory Policy
Program Design and Implementation
2007 Demand Response Pilot
Energy Storage
Demand Response Coalition
Links
