Comments on: When Negawatts Equal Megawatts, Demand Response Blooms

By: Cali Opens the Market to Demand Response

Cali Opens the Market to Demand Response — Thu, 12 Aug 2010 17:45:55 +0000

[...] demand response opened to market pricing across the country, not just California. Back in March, FERC issued a proposal that would require all ISO’s and RTOs (regional transmission operators) to pay demand response [...]

By: Jeff St. John

Jeff St. John — Fri, 26 Mar 2010 03:34:24 +0000

I agree, Beavsco – that’s what makes the whole thing interesting. What’s the difference between demand response and energy efficiency? Answer: something that’s been proven to turn down when you “demand” it, not when someone feels like it. Making that leap is what pays the bigger bucks.

By: Beavsco

Beavsco — Wed, 24 Mar 2010 20:41:34 +0000

The ability to "generate" negawatts isn't limited to the demand response players. While companies like EnerNOC and CPower are controlling Demand (the total energy required at a given moment measured in kW), several energy management firms focus on reducing consumption (the amount of energy required over time measured in kWh). Companies like Prenova (www.prenova.com), Phoenix ET, and others can proactively control a customer's energy consumption by managing the operation of HVAC, lighting, and refrigeration systems. Today, the ROI from these services comes from reducing energy spend, but given an accepted measurement standard, customers might also receive payment from the utility for reducing consumption as well as demand. EnerNOC seems to be moving into this area by acquiring building management and measurement companies.

By: Jeff St. John

Jeff St. John — Wed, 24 Mar 2010 15:09:09 +0000

That's interesting, Cliff -- what kind of derivatives games do you envision?

By: cliff

cliff — Wed, 24 Mar 2010 09:35:12 +0000

now that's a very interesting thing.

I can sense a great opportunity for derivatives games though...