Customer value is a key factor in any smart grid business case. But not all customers are created equal. In particular, commercial and industrial (C&I) customers have greatly different needs,...
Load as a Resource
Integrating controllable demand into real-time, security constrained economic dispatch.
management system that integrates distributed energy resources—generation, storage and load management—onto the grid. The system must allow for full integration of curtailable load into ISO day ahead and real time energy, capacity and ancillary services markets, and its functionality and capabilities must mirror those of an energy management system used to forecast and control generation on complex and integrated power systems, such as the RTOs. Such a system includes robust forecasting of load, generation, and prices; unit commitment; and resource optimization capabilities. Additionally, a CD management system incorporates measurement, validation and reporting functions, as well as capabilities for localized optimization, to help distribution operators manage constraints at feeders, substations, and other equipment. Deployment of the system will allow a utility to accomplish the principal elements for successful distributed resource integration.
Controllable load can be used by both customers and their utilities to maximize the capabilities of controllable load and distributed resources—particularly environmentally benign resources—to reduce load on the grid. Unlike traditional demand response systems, bid-based dispatch provides customers with greater certainty that they have the capability to commit to specified reductions of load on the grid, and validates for the utility that the reductions occurred. Customers and the utility can use this capability to participate in wholesale capacity, energy, and ancillary services markets, thereby increasing the value of distributed load control and resources to them. And bid-based dispatch can be used to dynamically schedule load reductions or distributed resources into the grid as reliable resources that can be used to address grid-wide or local reliability and security concerns.
1. Report on Security Constrained Economic Dispatch By The Joint Board for the PJM/MISO Region Submitted to the Federal Energy Regulatory Commission (Docket No. AD-05-13, May 24, 2006).
2. Joint Board at 5.
3. Id. at 46-7.
4. FERC Order 745, ¶47.
5. DOE Strategic Plan, May 2011, at. 24.
6. Dynamically dispatchable load refers to the portion of power load that is flexible and can voluntary be decreased or increased in real time. This can thought of as virtual generation.
7. This obviously would make sense only in those situations where a utility can access a price-based wholesale market.