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Measurement, Verification, and Forecasting Protocols for Demand Response Resources:

This document explores the crucial role of Measurement and Verification (M&V) and forecasting in demand response (DR) resources within electric power systems. It highlights various DR options, including price-based and incentive-based programs, discussing the importance of establishing customer baselines and the standardization vs. flexibility debate in M&V protocols. Key challenges are addressed, such as diversity among DR resources and the valuation of load impacts for customer settlements. The document provides references to existing protocols and studies, underscoring the significance of effective DR measurement.

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Measurement, Verification, and Forecasting Protocols for Demand Response Resources:

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  1. Measurement, Verification, and Forecasting Protocols for Demand Response Resources: Chuck Goldman CAGoldman@lbl.gov Lawrence Berkeley National Laboratory NARUC-FERC Demand Response Collaborative Washington DC February 18, 2007

  2. Why is DR M&V and forecasting important?

  3. Role of DR in Electric Power Systems • DR options include price-based DR (time-varying electricity tariffs) and incentive-based DR (programs that pay for load reductions) • Incentive-based DR: “dispatchable”; event-based • Linkage between retail rate design/DR programs and wholesale market design/structure

  4. Measuring DR Impacts: Establishing Customer Baseline is Key

  5. DR M&V Protocols: Standardization vs. Flexibility

  6. DR Measurement/Verification and Forecasting: Challenges & Issues • Significant diversity among DR Resources • M&V methods may vary: Default with Alternatives • DR Load impacts for Customer settlement vs. B/C tests and resource planning • M&V Protocols: Standardization vs. Flexibility? • ISOs have made progress (across product markets; “mass market”) • “Firming up the DR resource”? • Price-based DR (RTP, CPP, TOU) rarely treated as a “resource” • Events are rare: Role of periodic “testing” of resource capability? • Linking DR program evaluation results to Market Potential and forecasting assessments?

  7. DR M&V Resources & References • KEMA-XENERGY, 2003. Protocol Development for Demand Response Calculation – Findings and Recommendations, Prepared for California Energy Commission, CEC-400-02-017F, February. • Summit Blue Consulting LLC. and Quantum Consulting Inc., 2006. Protocols for Estimating the Load Impacts from DR Program, Prepared for CPUC/ CEC Working Group 2: Evaluation Committee, April 3. • LBNL Electricity Markets and Policy Publications http://eetd.lbl.gov/ea/EMS/drlm-pubs.html • Goldman, C. et al., 2007. Estimating Demand Response Market Potential among Large Commercial and Industrial Customers: A Scoping Study, LBNL-61498, January. • Hopper, N. et al., 2006. Customer Response to Day-Ahead Market Hourly Pricing: Choices and Performance, LBNL-58114. June.

  8. Background slides

  9. Definition of Demand Response “Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.” - Benefits of Demand Response in Electricity Markets, U.S. Department of Energy

  10. Incentive-based Programs Direct Load Control (DLC) Interruptible/curtailable rated (I/C) Demand bidding/Buy-back programs (DB) Emergency Demand Response Programs (EDRP) Capacity Programs (CAP) Ancillary Services markets program (A/S) Time-based rates Time-of-use (TOU) Critical peak pricing (CPP) Real-time pricing (RTP) Demand Response Resources Classification

  11. Electric System Planning & Operations

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