Demand response

Demand response providers with the ability to aggregate customers capable of reducing their electric demand (load) can participate in the ISO day-ahead, real-time and ancillary services markets. Demand side resources can offer bids that reflect their flexibility to adjust their load in response to market schedules and dispatches.

Demand response market participation models

The ISO offers various load participation models to fit different resource characteristics. Use the Participation Comparison - Proxy Demand, Distributed Energy Resource Provider, Storage, and Load Forecast Adjustment reference document to help distinguish between the ISO’s various DR market participation models, available both within the CAISO BAA and for Western EIM participants.

Requirements

Telemetry requirements

New resource implementation process

Demand response providers must successfully complete the new resource implementation process prior to participating in the ISO market. Participation in the ISO market requires a scheduling coordinator and ISO-certified revenue-quality meters. Bidding in ancillary services requires special certification and installation of direct telemetry.

Documents required for participation

Establish the contractual agreements to participate.

Net benefits test requirement

All proxy demand resources must participate in the net benefits test that the ISO uses to set the monthly price threshold for cost effective demand response resource bids. The test was established as an outcome of the Demand Response Net Benefits Test initiative in response to FERC order number 745. The test will continue until FERC rules otherwise. See the Demand response net benefits test results reports.

Proxy demand resource - load shift resource (PDR-LSR)

PDR-LSR participation allows storage resources to bid decreases and increases in load. It requires two separate Resource IDs for load curtailment, which can bid from the net benefits test threshold price up to the bid cap, and for load consumption, which can bid from less than $0 to the bid floor.

Sub-load aggregation point maps

For Load Aggregation Point mapping, go to OASIS under Atlas Reference > Mapping > Full Network Model Mapping, then choose the mapping type "LAP".

California demand response programs

California state agencies are developing demand response policy to encourage demand-side flexibility to adapt to grid conditions.

These programs are available to support grid reliability through out-of-market actions during extreme weather periods when the grid is extremely stressed.

Related application(s) and access

The Demand Response Registration System (DRRS) contains the location and registration management for Proxy Demand Response (PDR) and Reliability Demand Response (RDR) resources.
The DRRS user guide and related resources are available on the application page.

Related ISO Tariff and Business Practice Manual

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