Would you like to get paid for not using energy? You can receive sizable payments from the utility for curtailing energy usage during times of peak demand. Programs that formalize this process are known as “demand response”. The providers of these programs are referred to as Curtailment Service Providers (CSP’s). Demand response programs exist in many different types, some are voluntary while others require a firm commitment when called upon. Most programs have different financial incentive amounts depending on the service provided when you reduce or shift your demand during peak demand times. Nearly every type of business can join: commercial, retail, government, education, manufacturing and industrial, hospitality and entertainment.
Reducing your demand improves the reliability of the grid. Less demand leads to less stress on energy transmission and distribution systems. This in turn means that such systems are less likely to fail. Additionally reducing your electricity when demand is high will often result in lower wholesale prices. When energy demand is low, more costly and less efficient systems of generating power aren’t as heavily relied on, keeping overall electricity prices stable.
At Balanced Rock Energy, we can help you evaluate your operations – including your ability to access back-up generation assets when called to curtail – and current usage patterns – including your peak demand charges – to see if demand response could be a lucrative part of your energy management strategy and support the smooth running of your operations. When applicable we’ll assist with sourcing the correct CSP to ensure the service is delivered flawlessly and payments are received as promised.
We’ve seen demand response work well for a number of clients, but we’ve also seen it fall short for organizations that did not understand their rights and responsibilities when participating in these programs. If your company or organization can’t reduce it’s electric demand when called upon, this may result in penalties. Some programs will make customers pay these penalties for under achieving when demand responses are called. Additionally demand responses often need to be in effect for a specified length of time, from minutes to hours, so you may only want to include energy reduction measures your company or organization can handle during those times. Your ability to conduct business as usual may be impacted during the times demand response resources are dispatched.
As with every piece of the energy management puzzle, demand response works best when it is understood and implemented within the context of a comprehensive, integrated energy strategy which is exactly what Balanced Rock Energy will develop and help manage for you.