A Guide to Inform Institutions about Participation in PJM’s Demand Response Programs
Abstract
Increasing reliability concerns over the last decade have led stakeholders within
the Energy Industry to place a great deal of attention on the management of electricity
load. Traditionally, consumers have been shielded from the price signals that indicated
high stress on the electricity grid, but through a process known as Demand Response
(DR), customers are now being offered incentives to actively manage their load for
increased reliability. Attention on DR has grown with its profusion into electricity
markets; at both the wholesale and retail levels. Focusing on institutional customers
and DR programs within the PJM wholesale electricity market, this study provides a
comprehensive resource to answer questions associated with (1) the regulatory structure
of PJM’s markets for DR and (2) the possible benefits that can result from market
participation. As a first step in addressing these objectives, this report first
provides an analysis of the current publically available information, and establishes
that there is no single resource that provides sufficient information to resolve all
the questions an institution may have. This report then offers clear and concise
content by which institutional customers can assess the framework of PJM’s DR programs.
Further, a tool for estimating the potential revenue available from participation
in the capacity auction was created to help institutions understand the profitability
of engaging in the capacity market. Finally, this report concludes that while participation
in PJM’s demand response programs is a complicated undertaking, there are a wide variety
of options available to meet the unique needs of individual customers, as well as
significant financial incentives.
Type
Master's projectPermalink
https://hdl.handle.net/10161/6674Citation
Aldina, Robin; & Soden, John (2013). A Guide to Inform Institutions about Participation in PJM’s Demand Response Programs.
Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/6674.Collections
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