Demand Response in California with Energy Toolbase

by Lindsey Paulk on Jan 16, 2024

California energy storage

demand response

demand response California

energy storage

Demand response is a value stream targeted by energy storage systems and involves shifting or reducing power during peak periods when the grid is significantly strained.Demand response works to balance the grid and manage the supply and demand of electricity, helping to avoid power outages caused by overconsumption and ensure a reliable grid supply.  

An energy storage system enables effective participation in demand response programs but has been a difficult value stream to analyze before a project is deployed to determine savings. For energy storage systems equipped with an energy management system (EMS), the EMS will respond to an event by dispatching during grid peak periods. Energy Toolbase’sAcumen EMS™ will charge your battery in advance to prepare for a given event and discharge during the event for maximum demand response impact.ETB Monitor enables users to manage these events themselves through a real-time, comprehensive monitoring platform. 

Generally, demand response programs are implemented by utilities or in conjunction with their customers, and the utility typically incentivizes customers to participate in demand response programs. Participating in these programs offers many benefits to the end customer, including storage incentives, grid support and reliability, and positive environmental impacts. While your energy storage (ESS) assets generate revenue and provide capacity and energy to the grid, Energy Toolbase enables participation of your ESS assets in various grid response programs in California, which can dramatically improve project economics. Energy Toolbase additionally provides accurate modeling, enrollment, and generation for demand response programs in California. The programs that are supported include:  

Demand Site Grid Support Program (DSGS)

Energy Toolbase will enable users in the coming weeks to model the Demand Side Grid Support Program (DSGS) revenues in theETB Developer platform and assists with a seamless enrollment into the program. The DSGS program is ideal for sites with coincidental ESS discharges between 4:00 PM and 9:00 PM as the program allows you to capture value while performing utility bill savings. Acumen EMS uses the metered data to review and reconcile the system’s performance with no complex baseline methodology. For participants who enroll in 2024, revenues are increased by 30%.

Demand Response Auction Mechanism (DRAM)

The Demand Response Auction Mechanism (DRAM) program was created in 2014 under the guidance of the California Public Utility Commission (CPUC) to coordinate utility-based reliability demand response with CAISO, the state’s grid operator. DRAM allows CAISO to add reliable demand response resources in California, where the grid may be at risk.  

DRAM is a valuable program to hedge utility bill savings with market revenues. Assets that are enrolled can participate year-round. This program is lucrative for sites where the load is not coincidental with the program participation hours due to the 10 in 10 baseline. 

Emergency Load Reduction Program (ELRP Group B)

The ELRP is a 5-year pilot program designed to pay electricity consumers for reducing energy consumption or increasing electricity supply during periods of electrical grid emergencies. The program offers a new tool for electric grid operators and utilities to reduce energy consumption during a grid emergency to reduce the risk of electricity outages. The ELRP program is stackable with other programs and experiences fewer events, but it is highly lucrative for participants.  

Acumen EMS is deployed on sites across California and assists these assets in participating in demand response programs. To learn more about how Energy Toolbase supports those programs, clickhere orschedule a call with our team.  

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