Dive Summary:
- A 2011 FERC rule making grid operators pay the wholesale price to demand response resources as long as it’s cost-effective has resulted in increased payments in the PJM Interconnection, the East coast grid operator reported last week in an analysis of the ruling’s impact.
- At first PJM opposed the rule, but the company is now on board to pay the wholesale price, rather than the difference between the wholesale and retail price for transmission.
- Interest in demand response mostly came from big industrial companies and offices that committed more than 10 megawatts last year.
From the article:
“The new rules, PJM said in its recent report, should also be good for aggregate demand response, in which curtailment providers offer up bundled loads from different places, although there isn't proof of that yet.”