Presentation on theme: "NAESB Measurement and Verification Model Business Practice Retail Electric Demand Response 5/29/09 update."— Presentation transcript:
1 NAESB Measurement and Verification Model Business Practice Retail Electric Demand Response 5/29/09 update
2 Activities 11 - Conference calls/WebEx Two day meeting in Baltimore One every other weekGood participation form group members and industry expertsTwo day meeting in BaltimoreDiscuss approach and matrix1 WEQ Leadership/NAESB Board meeting
3 Approach for Retail Standard Determine that the RTO draft recommendation could apply to the retail draft recommendation with proper wording changesDetermine that the RTO draft recommendation provides a framework for the retail draft recommendation, but more detail is necessaryDetermine that the retail draft recommendation needs to be more prescriptive than the wholesale draft recommendation.
4 Model Business Practice Measurement and Verification (M&V) standards are intended to facilitate Demand Response in retail electricity markets by providing a common framework for the following:Transparency: accessible and understandable M&V requirements for Demand Response productsAccountability: criteria that will enable the Program Administrator to accurately measure performance of Demand Response resourcesConsistency: standards applicable across retail electricity marketsComprehensive: strives to cover all forms of Demand Response
5 ApplicabilityModel Business Practices should cover Dispatchable and non-Dispatchable programsDispatchableCapacity Programs:Direct Load ControlFirm Service LevelGuaranteed Load DropCritical Peak PricingAncillary Service Programs:Spinning ReserveNon Spinning ReserveRegulation ServicesEnergy Service ProgramsDispatched for economic reasonsNon Dispatchable – need to define
6 Coordination Working closely with Wholesale standards group to maintain consistency with current approved standardNERC to insure consistency with reliability standardsAEIC as they develop load research standards with regards to M&VIndustry groups and Market Participants involved in providing or evaluating demand response programs such as EPRI, EnerNoc, Comverge, GoodCents
7 Scope Limited to Demand Response programs only: Does not include Measurement and Verification of energy efficiency programs or for permanent load reductions.Confined to the retail markets. If a utility has programs that are bid into and operate in the wholesale markets then the wholesale standard will take precedence.Standards are voluntary across state jurisdictions. They can be adopted by individual state regulatorsProgram Administrator has significant flexibility to adopt more stringent requirements in most areas to meet regional needs.
8 Product CategoriesWholesale group developed model business practice for each of 4 Product types:Energy ServicesCapacity ServicesReserve ServicesRegulation ServicesRetail group is developing one model business practice to cover all Demand Resource products in the retail space
10 Performance Evaluation A performance evaluation methodology is used to determine the Demand Reduction Value provided by aDemand Resource. The standards include descriptionsof acceptable Baselines and alternative performancemeasurements.Maximum Base LoadMeter Before / Meter AfterBaselineMetering Generator OutputNote: Eliminated the distinction of Type I and Type II for Baseline
11 Definition of TermsDefinition of Terms was developed to clarify specific meanings of terms while providing consistency and conformance where possible to:Wholesale StandardFERCNERCAEICCurrently working through the NAESB glossary committee to adopt definitions – may take several more meetings to complete
13 Key DefinitionsDemand Resource: A Load or aggregation of Loads capable of measurably and verifiably providing Demand Response.Demand Response: Changes in electric use by demand-side resources from their normal consumption patterns in response to changes in the price of electricity, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.
14 Key DefinitionsProgram Administrator: An investor owned utility, governmental or cooperative utility or independent aggregator of demand response programs who has responsibility for developing and operating demand response programs identified in this standard. The Program Administrator shall have regulatory reporting responsibility to the utility regulatory body in the jurisdiction of the retail load and reporting responsibility to NERC
15 Key DefinitionsBaseline: A method of estimating the electricity that would have been consumed by a Customer or Demand Resource in the absence of a Demand Response Event. It may be calculated using interval metering and/or statistical sampling techniques. The figure below illustrates the concept of Baseline relative to a Demand Response Event.
17 General Characteristics Advance Notification (remote switch vs no switch)Deployment TimeReduction DeadlineRamp Period determined by Program AdministratorRelease/RecallNormal OperationsDemand Resource Availability MeasurementAggregationTransparency of Requirements
18 After-The-Fact Criteria After-the-Fact Metering RequirementMeter AccuracyDetails of Meter/Equipment StandardsMeter Data Reporting DeadlineMeter Data Reporting IntervalClock / Time AccuracyValidating, Editing & Estimating (VEE) MethodOn-Site Generation Meter Requirement
19 Performance Evaluation Methodologies Maximum Base LoadMeter Before / Meter AfterBaselineMetering Generator Output
20 Maximum Base Load:A performance evaluation methodology based solely on a Demand Resource’s ability to reduce to a specified level of electricity Demand, regardless of its electricity consumption or Demand at Deployment.
22 Meter Before / Meter After: A performance evaluation methodology where electricity Demand over a prescribed period of time prior to Deployment is compared to similar readings during the Sustained Response Period.
24 Baseline:A method of estimating the electricity that would have been consumed by a Customer or Demand Resource in the absence of a Demand Response Event. It may be calculated using interval metering and/or statistical sampling techniques. The figure below illustrates the concept of Baseline relative to a Demand Response Event.
26 Metering Generator Output: A performance evaluation methodology, used when a generation asset is located behind the Demand Resource’s revenue meter, in which the Demand Reduction Value is based on the output of the generation asset.
27 Next StepsComplete the glossary committee definition review – estimate 2 meetingsReview document for consistencyMove information and graphics in definition section to appropriate section in the documentRemove any unused definitionsReview document flowPlan is to present Model Business Practice at the next NAESB meeting in July