Download PJM (Demand reduction) -- Thursday 3rd panel

Demand Response Potential
Maryland Public Service Commission
Planning Conference
Andy Ott
Vice President Markets
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PJM ©2007
2006 Integration of Demand Response in PJM Markets
• Demand Response integration into PJM markets
completed in 2006
– Energy Market
• Economic Load Response
• Emergency Load Response (Energy Only Option or Full
Emergency)
– RPM Forward Capacity Market
• Demand Resource (DR)
• Interruptible Load for Reliability (ILR)
– Synchronized Reserve Market
– Regulation Market
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PJM ©2007
Growth in Economic Load Response
Volume (MWh) of Demand Response Participation
in the Market
300,000
250,000
200,000
150,000
100,000
50,000
0
2002
2003
2004
2005
Year
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PJM ©2007
2006
as of 6/30/2007
2007 Demand Side Response
Synchronized Reserved Participation
Total Payments
Cleared MWh
$500,000
40,000
$450,000
35,000
$400,000
30,000
$350,000
Dollars
$250,000
20,000
$200,000
15,000
$150,000
10,000
$100,000
5,000
$50,000
$-
0
Jan-07
Cleared MWh
Total Payments
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Feb-07
Jan-07
35209.6
438926.64
4
Mar-07
Feb-07
5104
97891.99
Mar-07
8675.3
181814.73
PJM ©2007
Apr-07
Apr-07
17275.2
234376.25
May-07
17896.8
219276.12
May-07
Jun-07
8859.1
124575.87
Jun-07
Total
93,020
1,296,862
MWh
25,000
$300,000
Incremental Generation and Demand Resources
in RPM Auctions
RTO**
Capacity Changes (in ICAP)
EMAAC
SWMAAC
2007/2008
2008/2009
2007/2008
2008/2009
2007/2008
2008/2009
Increase in Generation Capacity
602.0
724.2
134.7
293.4
0.0
52.0
Decrease in Generation Capacity
-674.6
-375.4
-257.7
-51.6
-112.0
-14.0
Increase in Demand Resource Capacity*
555.0
574.7
43.3
288.7
19.0
284.5
Net Increase in Installed Capacity
482.4
923.5
-79.7
530.5
-93.0
322.5
** RTO numbers include EMAAC and SWMAAC
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PJM ©2007
Changes to Generation Retirement Decisions
Since RPM Approval
RTO**
EMAA
C
SWMA
AC
2019.3
1857.2
0.0
Postponed Retirement
160.7
58.6
102.1
Reactivation
133.6
133.6
0.0
2313.6
2049.4
102.1
Withdrawn Deactivation Requests
Total
Values Represent Cleared UCAP in the 2008/2009 BRA
** RTO values include EMAAC and SWMAAC
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PJM ©2007
Key Recommendations from
Recent PJM Symposium on DSR
•
•
•
•
•
•
•
•
•
A regional approach to the development of standardized platforms,
communications protocols, investments in enabling technologies, and
wholesale-retail DR integration issues
New retail rate structures that better reflect wholesale market pricing
strategies
Pricing that captures the full value of DR and mechanisms for customers
and service providers to get access to all relevant revenue streams
Direct load control for all residences, perhaps through state legislation, and
modification of building codes for new residences so that they include
specifications for technologies that accept/address dynamic pricing signals
Advanced metering infrastructure (AMI) available to all customers who want
it and price responsiveness with little or no manual intervention
Exposure for all customers to hourly wholesale prices
Establishment of quantitative (MW) regional goals for DR
Adjustment of the 25% cap that currently exists in PJM’s synchronous
reserves DR program
Full responsibility taken by PJM for metered data and calculations used in
determining customer baseline loads (CBL)
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PJM ©2007
Impediments Identified by the PJM DSR Working Group
• Current focus of Demand Side Response
Working Group
– PJM implementation of proposed environment for
meter data and customer baseline calculation
– Availability and timeliness of required infrastructure at
the retail level
– Distributor verification/provision of end-use
customer’s usage, retail rate, and location
– Integration of Energy Efficiency (FERC Order on
RPM)
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PJM ©2007