TPI Energy Services

DEMAND RESPONSE:

By participating in a Traditional Demand Response program, which allows customers to reduce their electricity usage and demand in response to power grid needs, your business can be compensated for your participation.

By coupling that with an Economic Demand Response program, you can create an additional stream of revenue by voluntarily responding to calls to curtail consumption when it makes economic sense

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DEMAND RESPONSE LOADS

Demand Response programs have been developed to address big commercial and industrial customers, taking into account the significant share of the total energy demand that comes from buildings and their cooling/heating needs.

What Exactly is Demand Reponse?

According to the Department of Energy, Demand response is an electricity tariff or program established to motivate changes in electric use by end-use customers, designed to induce lower electricity use, typically at times of high market prices or when grid reliability is in jeopardy.

In regions with centrally organized wholesale electricity markets, demand response can help stabilize volatile electricity prices and help mitigate generator market power.

Demand response can include consumer actions that can change any part of the load profile of a utility or region.

Standard methods of engaging customers in demand response efforts include offering a retail electricity rate that reflects the time-varying nature of electricity costs or programs that provide incentives to reduce load at critical times. Radio or internet-controlled switches on residential air conditioners or electric water heaters are but one of many methods used.

More demand response is not always a good thing; instead, it is situational, where it sometimes may not make economic or environmental sense to use. Whether a utility and its regulator encourage demand response is a financial decision relative to the local specific electricity supply mix and market conditions.

 In addition, sometimes demand response is not environmentally positive, such as when it shifts usage from one time period with generation with lower emissions behind it to another period whose replacement generation has higher emissions.

How demand response programs work for businesses:

funding, financing, Pay-as-you-go Programs, As-a-Service Options No Upfront Capital options, Equipment Leases, finance, , Supplier On-Bill Funding, Pace Financing, ROI Analysis , Grant Writing, Rebate Processing

Program Structure:

  • Utilities or third-party providers (aggregators) typically offer demand response programs.
  • They pay businesses to reduce their power consumption during peak demand periods.

Participation Process:

  • Businesses enroll in a demand response program with their utility or a third-party provider.
  • During peak demand events, the utility or provider notifies participants to reduce their energy usage.
  • Participants then lower their electricity consumption for a specified period.

Energy Reduction Methods:

Businesses can reduce energy use by:

  • Adjusting HVAC settings
  • Turning off non-essential lighting
  • Shifting energy-intensive operations to off-peak hours
  • Using on-site generators or energy storage systems

Compensation:

  • Participants receive financial incentives for their participation and performance.
  • This can include upfront payments, rebates, or lower energy rates.

Types of Programs:

  • Economic Demand Response: Businesses get paid to participate based on market conditions.
  • Automated Emergency Demand Response: Participation is automated through a partner or aggregator.
  • Environmental Demand Response: Focuses on reducing energy use when the grid is at its “dirtiest,” often tied to sustainability goals.

Benefits for Businesses:

  • Financial incentives and potential for lower energy costs
  • Ability to plan for and manage energy reduction events
  • Enhanced reputation for supporting grid stability and sustainability
  • Opportunity to contribute to overall grid reliability and efficiency

Implementation:

  • Many programs offer automated solutions, allowing businesses to participate without manual intervention.
  •  Advanced metering and energy management systems can facilitate participation and optimize response.

Considerations:

  • Businesses need to assess their operational flexibility to determine how much load they can shed during events.
  • The financial benefits should be weighed against any disruptions to normal operations.

By participating in demand response programs, businesses can not only reduce their energy costs but also play a crucial role in maintaining grid stability and supporting the transition to a more sustainable energy system.

Main benefits of participating in demand response

  1. Financial incentives: Businesses can receive payments, rebates, or lower energy rates to reduce usage during peak demand.

  2. Cost savings: Participating can lower energy bills and decrease operating costs.

  3. Improved grid reliability: Businesses can help ensure grid stability and prevent outages by reducing demand during peak periods.

  4. Environmental benefits: Demand response programs can reduce the need for carbon-intensive “peaker” plants, supporting sustainability goals.

  5. Operational planning: Businesses can prepare for demand response events, ensuring smooth transitions and avoiding unexpected outages.

  6. Enhanced reputation: Participation demonstrates a commitment to supporting grid stability and sustainability, which employees and consumers can appreciate.

  7. Increased control over energy use: Programs allow businesses more control over their electricity consumption.

  8. Reduced need for new power infrastructure: By managing demand, these programs can help utilities avoid building costly new power plants.

  9. Opportunity to optimize energy management: Participation can improve energy efficiency practices overall.

  10. Automated solutions: Many programs offer automated demand response options, making participation more manageable for businesses.

By participating in demand response programs, businesses can reduce their energy costs and play a crucial role in maintaining grid stability and supporting the transition to a more sustainable energy system.

Demand response programs help businesses prepare for peak events

  1.  Financial incentives: Businesses receive payments, rebates, or lower energy rates for reducing their energy usage during peak demand periods. This provides a financial motivation to participate and prepare for peak events.

  2. Advance notification: Most programs provide advance notice of upcoming peak events, typically 12 hours to 2 days ahead. This allows businesses to plan and prepare their energy reduction strategies.

  3. Pre-planned load reduction: Businesses develop a pre-planned load reduction scheme that outlines how they will reduce electricity demand during events. This allows them to be prepared with specific actions to take.

  4. Flexibility in reduction methods: Programs offer flexibility in how businesses reduce demand, such as adjusting HVAC settings, turning off non-essential lighting, shifting energy-intensive operations, or using on-site generators. This allows businesses to choose methods that work best for their operations.

  5. Education and engagement: Utilities educate businesses on how to effectively participate in and reduce energy use during peak times. This helps businesses understand how to prepare and respond.

  6. Technology integration: Many programs leverage smart meters, energy management systems, and automated controls to help businesses implement and manage their demand response actions more easily.

  7. Practice through testing: Some programs conduct occasional test events, allowing businesses to practice their demand response procedures outside peak events.

  8. Operational planning: Participating in demand response encourages businesses to evaluate their energy usage patterns and develop plans for managing consumption, which improves overall energy management.

By providing these tools, incentives, and preparation opportunities, demand response programs enable businesses to be ready to quickly reduce energy use when called upon during peak demand periods.

This preparedness benefits both the companies and the overall stability of the electric grid.

The long-term benefits for businesses participating in demand response programs:

1. Cost savings: Demand response programs can help reduce energy costs over time by lowering peak demand charges and providing financial incentives for participation

2. Improved energy efficiency: Participating in these programs often leads to greater awareness of energy usage patterns and can drive overall improvements in energy efficiency.

3. Enhanced grid reliability: By reducing demand during peak periods, businesses help stabilize the electric grid, potentially preventing outages and improving reliability for everyone.

4. Environmental benefits: Demand response reduces the need to activate less efficient “peaker” power plants, leading to lower emissions and a smaller carbon footprint.

5. Revenue generation: Some programs offer payments or credits for participation, creating a new revenue stream for businesses.

 

6. Operational planning improvements: Demand response encourages businesses to evaluate their energy usage patterns and develop plans for managing consumption, which can lead to better overall operational efficiency.

7. Technology adoption: Participation often involves adopting smart technologies and energy management systems, which can provide long-term benefits beyond just demand response.

8. Competitive advantage: Businesses that effectively manage their energy use through demand response may gain a competitive edge regarding cost structure and sustainability credentials.

9. Preparation for future energy markets: As the grid evolves towards more distributed and renewable energy sources, experience with demand response can position businesses well for future energy management challenges.

10. Cultural shift towards sustainability: Active participation can foster a culture of energy awareness and sustainability within organizations, potentially leading to broader positive changes.

These long-term benefits demonstrate that demand response programs can offer value beyond immediate cost savings, potentially transforming how businesses approach energy management and sustainability.

NATURAL GAS. ELECTRICITY. DEMAND RESPONSE. Broad Knowledge Base. Deep Insights.

TPI Services:

Energy Commodity Solutions

·        Managed Contract Negotiation

·        Cost/Risk Management

·        Utility Bill Audits

·        Rebates and Rider Exemptions

·        Capacity Tag Management

·        Demand Response Solutions

Renewable Energy

·        Solar, Wind and Hydro Options

·        Green E-RECs

·        VPPA Development

 

Sustainability Planning

·        Strategic Planning and Advising

·        Scope 1 and 2 Emissions Strategies

·        Renewable and Low-Carbon Solutions

·        ASHRAE Level Assessments

Building Management Solutions

·        Energy Monitoring

·        Building Envelope

·        HVAC Systems

·        Ventilation Systems

·        Water Systems

Electrical Solutions

·        LED Lighting

·        Power Quality

·        Power Surge Control

·        Meter Aggregation

·        Transformers/Substations

·        EV Charging

Project Funding Support

·        $0 Down and Pay-as-you-go Financing Options

·        Equipment Leases/Consignment

·        On-Bill Funding

·        Grant Writing

·        Return on Investment Analysis

·        Rebate Processing

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