California ISO Opens Market To New Demand-Response Product

The California Independent System Operator Corp. (California ISO) has further opened the state's power market to electricity customers, enabling them to compete alongside electricity suppliers.

Registrations are now being accepted by the California ISO for proxy demand resources (PDR). Demand-response providers can now bid electricity-reduction capabilities into the California ISO day-ahead and real-time markets as well as provide capacity in the ancillary services market. If dispatched, the provider would reduce electricity usage and receive payment similar to a power plant.

PDR is a flexible resource that enables all load types to participate in the ISO market, from aggregated residential loads to large industrial loads. The new PDR product will provide more choices and options for energy consumers to reduce costs and will help green the grid by assisting with the integration of renewable power, according to California ISO.

‘This is a clean, green energy product that allows consumers to sell energy consumption curtailments in our wholesale power market,’ says Keith Casey, vice president of market and infrastructure development at California ISO. ‘In addition to helping meet peak demands, it can also be dispatched to help balance the swings in production associated with wind and solar generation.’

The California ISO has run market simulations for several months in order to get ready to dispatch the new market product. It will take about a month to process and verify the registrations before the ISO begins accepting bids and dispatching the new resources.

SOURCE: California ISO

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