This month I wrote about the legal battle raging around FERC Order 745, which sets guidance for how RTOs should handle demand response. You can read more at powermag.com.
From its modest origins as a way to shed load when the grid is stressed, demand response (DR) has grown to be a significant player in electricity markets. In the PJM region, demand response has accounted for as much as 14,833 MW of capacity, almost 10% of the total.
Demand response has had a huge effect on market prices, shaving off the lucrative peak periods when generators could count on their biggest rewards. In 2013 alone, it delivered $12 billion in customer savings in PJM.
But savings to a customer look like revenue losses to energy generators. This above all has resulted in a massive pushback against demand response.