Demand Response 1

The Voluntary Peak Shedding Program

This program achieves the voluntary reduction of electrical consumption by targeting high-value hours through curtailable load, or the amount of electrical demand (kW) that a facility is able to reduce at will by turning off lights or equipment or raising temperature set points, for example. In this scenario, these hours are identified using the Independent Electricity System Operator’s (IESO) three-hour pre-dispatch pricing signal. The IESO is the organization responsible for directing the operation and maintaining the reliability of the electricity grid in Ontario.

Each month, the OPA sets a minimum allowable strike price. Participants in the DR1 program would submit their monthly strike price offer to the OPA. This then becomes the price that triggers the organization to reduce its load. This price must meet or exceed the monthly minimum price posted by the OPA.

Revenue for these program participants combines their submitted, OPA-approved strike price and the certified megawatt hours (MWh) of load reduction.

Activation of DR can happen anytime when the three-hour pre-dispatch price (as posted by the IESO) is equal to or greater than the OPA participants’ approved strike price.

The OPA must be notified if the participant organization intends to provide load reduction. Are there any other performance obligations? None, other than to be ready to respond at least once a season (provided an opportunity exists to do so).

Here’s a sample calculation for DR1

A company participating in the DRI program delivered five megawatts (MW) of demand reduction for the maximum number of hours in a year at the floor price.

The annual average floor price that year was $105.50 per MWh.

There were 350 hours during the year when the IESO three-hour pre-dispatch price exceeded the seasonal floor price.
Therefore, the annual revenue would look like this

5 MW x 350 hours x $105.50 = $184,625.

The total then would be $184,625. or $36,925 per MW of curtailed demand.

DR 1 Program Application and Forms

Application Guide provides detailed instructions for applying to the Demand Response program and for completing the necessary forms.  Also includes examples.

Program Forms:

• OPA Demand Response Program General Form (DRP Form #1 - General Form)
• OPA Demand Response Program Project Summary (DRP Form #2 - Project Summary)
• OPA Demand Response Program Load Form (DRP Form #3 - Load Form)
• OPA Demand Response Program Facility Form (DRP Form #4 - Facilities Form)
• OPA Demand Response Program End-Use Devices Form (DRP Form #5 - End-Use Devices Form)
• OPA Demand Response Program M&V Confirmation of Curtailment (DRP Form #6 - M&V Confirmation of Curtailment)

Interested in learning more about any of the demand response programs and how your organization could benefit from participation? To receive additional information, please provide your full contact information here.

 

All amounts, examples and processes are provided only as possible scenarios of participation in DR, and are in no way binding on the OPA. The actual terms and conditions of your participation in DR will be governed by your contract with your DR Provider (Aggregator). Terms of participation and compensation are subject to change at any time and without notice.