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How does Demand Response pay?

The electric grid has limited generation capacity, and runs with a set amount of headroom. Some days however are too taxing on the grid. In addition to the normal demand on the system, a heat wave has everyone turning up the AC. This demands more electricity–potentially beyond the system’s capacity, at which point brown-outs and rolling black-outs occur.

To avoid this scenario, a system of incentives exists. This chart illustrates an “Event Day.”   When called, the participants voluntarily shift their demand to an alternate time-frame. Here a medium-sized manufacturer shifts some demand to the evening and is awarded more than $6,000 for a 3-hour period on a given day.

Smart Grid Programs

Broadleaf will help you find the program that best fits your business model.  Participating in a smart grid program not only helps you to capture additional revenue, but also on the day of an event, mitigates the use of high-pollutant generation resources such as coal and oil that would otherwise be burned to meet the demand.

  • Demand Reduction (DR, ILR) – Limited, Extended, and Annual

  • Energy Reduction (Voluntary Participation)

  • Load Reduction

  • Synchronized Reserves

  • Day Ahead Scheduling Reserves

  • Regulation and Frequency Response

CON EDISON SMART GRID PROGRAM IN THE SPOTLIGHT

ConEd DLRP Tier 1 Offer

$18/kW
  • 5+ event bonus pay: $6/kW
  • Performance Pay Rate: $1.00/kWh
  • Number of Test Events: 1
  • Notification: 2 Hours
  • Duration: May 1 – Sep 30
  • Reservation Payout(1): $4,500
  • Performance Payout(1): $200

Other Incentives

BONUS
  • Enablement Pay Rate: $800/kW
  • Lighting: 16/kWh + $800/kW
  • Min peak-load reduction of 50 kW
  • Funds for Backup Generation
  • Funds for Alternative Curtailment
  • Incentive cap at 50% of project
  • Incentive limit of $10MM/project

ConEd CSRP 4-Boro Offer

$18/kW
  • 5+ event bonus pay: $6/kW
  • Performance Pay Rate: $1.00/kWh
  • Number of Test Events: 1
  • Notification: 21 Hours
  • Duration: May 1 – Sep 30
  • Reservation Payout(1): $4,500
  • Performance Payout(1): $200

(1) ASSUMPTIONS FOR DLRP/CSRP TABLE ABOVE:

  • 200 kW Commitment
  • Event Length of 4 hours
  • Tier 1 DLRP (Tier 2 pay is higher but limited availability)
  • Additional 3-Year incentive available but not shown
  • 1 Total DLRP/CSRP Test Event, 2 Total CSRP Events
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