Understanding DR Performance Requirements

Successfully participating in Demand Response (DR) programs requires meeting specific performance criteria set by the grid operator (ISO/RTO) or utility. Understanding these requirements is crucial for C&I facilities to ensure compliance, maximize earnings, and avoid penalties.

Key Performance Parameters:

  • Notification Time:
    The amount of advance warning provided before a DR event begins.
    Ranges from day-ahead (~21 hours for ConEd CSRP) or morning-of (some NE ConnectedSolutions events) down to 2 hours (NYISO SCR, PJM Emergency DR planned), 30 minutes (PJM Emergency, ERCOT ERS-30, CA BIP 30-min), 15 minutes (CA BIP 15-min), 10 minutes (ERCOT ERS-10, ECRS; ConEd DLRP Immediate), or even effectively instantaneous for automated ancillary services like ERCOT RRS (under-frequency trip).
    Impact: Longer notice allows more time for planning and manual adjustments; shorter notice requires faster, often automated, response capabilities but typically offers higher compensation.
  • Response Time:
    The maximum time allowed from receiving the dispatch signal to achieving the required load reduction. This is often the same as the fastest notification time for a given product (e.g., a 10-minute ERS product requires response within 10 minutes).
    Crucial for meeting program obligations, especially for faster programs (ancillary services, short-notice emergency DR).
  • Event Duration:
    The length of time the load reduction must be sustained during a single DR event.
    Varies significantly: Ancillary service events might last only 10-30 minutes. Utility peak shaving events often last 2-4 hours (NE ConnectedSolutions, CAISO events). Emergency capacity events can last 4-6 hours or even longer in rotational blocks (NYISO SCR up to 4 hrs, PJM Emergency up to ~6 hrs, CA BIP up to 6 hrs, MISO LMR 4 hrs max).
    Impact: Affects operational planning. A facility might easily manage a 1-hour curtailment but struggle with a 6-hour shutdown. Some programs also limit the total number of event hours per year or season (e.g., CA BIP max 180 hrs/year, ERCOT ERS ~8-12 hrs/period).
  • Metering Requirements:
    The type of electricity meter needed to measure energy usage and verify performance.
    Virtually all C&I DR programs require interval meters (AMI, smart meters, or older MV-90 types) capable of recording data at least every 15 minutes. Some faster programs (e.g., MISO DRR-II providing reserves) may require 5-minute metering for settlement. Basic monthly meters are insufficient.
  • Telemetry Requirements:
    The need for real-time communication of load data and/or resource status back to the grid operator or aggregator.
    Essential for fast-response ancillary services (ERCOT RRS/ECRS, PJM/NYISO/ISO-NE/MISO reserves & regulation), typically requiring 2-6 second data updates. Often not required for slower capacity/emergency programs or some utility programs where performance is verified after-the-fact using interval meter data. Aggregators often install necessary telemetry equipment.
  • Minimum Load Reduction / Aggregation Rules:
    The smallest amount of curtailable load required to participate, and rules for combining multiple sites.
    Wholesale market programs typically require a minimum of ~100 kW (0.1 MW), though ancillary services might require 1 MW or more. Utility programs sometimes have lower thresholds (e.g., 50 kW for ConEd programs). Aggregators play a crucial role by combining load from multiple smaller facilities to meet these minimums. Aggregation usually requires sites to be within the same market zone or utility territory. FERC Order 2222 is aiming to standardize and expand aggregation capabilities.
  • Baseline Methodology:
    The method used to estimate what a facility's energy usage *would have been* during an event had it not curtailed. Performance is measured against this baseline.
    Crucial for accurate payment and compliance. Various methods exist. (See DR Baselines Explained page for details).
  • Testing and Compliance:
    Procedures for verifying readiness and measuring performance.
    Many programs require periodic tests (e.g., 1-hour test annually if no real events occur) to confirm capability. Compliance during events is measured against the baseline or Firm Service Level (FSL). Performance factors may adjust payments, and consistent non-compliance can lead to penalties or disqualification.

Matching a facility's operational flexibility and technical capabilities (metering, controls, communication) to these program requirements is essential for successful DR participation.