Integrating DR with Storage, EVs & Other DERs

The landscape of Demand Response (DR) is evolving beyond simple load curtailment. A major trend is the integration of DR with other Distributed Energy Resources (DERs) located at C&I facilities, such as battery energy storage systems (BESS), managed electric vehicle (EV) charging, and on-site generation (like solar PV).

This integration creates more sophisticated, flexible resources capable of providing a wider range of grid services and unlocking greater value.

Why Integrate DR with Other DERs?

  • Enhanced Flexibility: DERs like batteries can respond faster, more precisely, and potentially for longer durations than traditional load curtailment, opening up participation in higher-value ancillary service markets.
  • Reduced Operational Impact: Instead of shutting down processes, a facility might use its battery to reduce net load from the grid during a DR event, minimizing disruption to core operations. Similarly, smart EV charging can be paused or shifted.
  • Increased Revenue Potential: Combining resources allows for optimized participation across multiple programs and markets (value stacking), potentially earning more than any single resource could alone.
  • Grid Service Versatility: An integrated DER portfolio can provide multiple services – reducing peak load, providing fast frequency response, absorbing excess solar generation, etc.
  • Alignment with Policy: FERC Order 2222 explicitly encourages the aggregation of mixed DER types. State policies often provide specific incentives for storage or managed EV charging that can be combined with DR participation.

Examples of Integration:

  • DR + Battery Storage (BESS):
    A C&I facility uses its on-site battery to discharge during a DR event, reducing its draw from the grid without interrupting operations. This allows participation even if core processes cannot be curtailed. Some programs offer higher incentive rates specifically for battery participation (e.g., ConnectedSolutions in MA, potentially higher RA value in CA). Batteries can also enable participation in fast ancillary service markets (regulation, reserves).
  • DR + Managed EV Charging:
    A facility with an EV fleet can enroll in programs that pause or reduce charging levels during DR events. This provides curtailable load without impacting building operations. Utilities often offer specific managed charging programs with incentives for shifting charging to off-peak hours, which complements DR participation.
  • DR + Solar PV + Storage:
    A facility combines its solar generation, battery storage, and flexible load into an integrated system. During a DR event, it might maximize solar self-consumption, discharge the battery, and curtail non-essential loads simultaneously to achieve the required grid impact.

Considerations for Integration:

  • Control Systems: Requires sophisticated Energy Management Systems (EMS) capable of coordinating multiple DERs and responding to external signals (DR dispatches, price signals).
  • Aggregator Capabilities: Working with an aggregator experienced in managing mixed DER portfolios is often essential for navigating complex market rules and optimizing dispatch across different assets.
  • Program Rules: Understanding how specific DR programs treat integrated resources (e.g., how baselines are calculated for sites with solar/storage, specific incentives for batteries) is crucial.
  • Interconnection & Permitting: Adding DERs like storage or significant EV charging involves utility interconnection processes and permitting requirements.

Integrating DR with other DERs represents the future of demand-side participation, transforming C&I facilities from simple curtailable loads into dynamic, multi-service grid resources. This trend offers greater operational flexibility and significantly enhances the potential economic benefits of engaging with energy markets.