Danger. Danger. Danger. The computer screen flashes red indicating a severe congestion problem in the northern region. The control room operator jumps into action and activates the local demand response resources (DRR). These resources have been properly trained and well coordinated for several years, so they know just what to do when asked. A few consumers reduce their loads and others turn on a facility generator. As all of this is taking place, the control room operator watches the congestion problem disappear. But they were not really concerned, they’ve seen the DRR spring into action before.
The International Energy Agency’s Demand Side Management Programme (IEA-DSM) established Task XIII to evaluate DRR practices from around the world and develop recommendations on best practices for integrating DRR into regular market activities. Task XIII was formally approved at the DSM Executive Committee meeting on April 15, 2004. Ross Malme (USA), President & CEO of RETX Energy Services Inc. and Chairman of the Peak Load Management Alliance (a USA DRR trade association), was inducted as the Operating Agent for Task XIII.
Demand response is the ability of electricity demand to respond to variations in electricity prices in 'market' or 'real' time. It can be achieved through load reductions or utilizing alternative onsite generation sources. Inclusion of Demand Response Resources (DRR) in energy markets can take the form of reduced energy costs, direct payments for energy “not consumed”, and/or a reservation payment for being available to reduce consumption upon request. This view of DRR as a resource can be taken within any structure, ranging from a totally liberalized electricity market for all customers to a still-regulated regime where one provider is charged with meeting customer needs and providing customers with choices in ways that are the lowest cost and most reliable. DRR is a tool needed by any electricity system to adequately, economically and reliably carry out its planning and operation responsibilities.