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DRCC Webinar: Delivering Demand Response

DRCC Webinar: Delivering Demand Response. Takeaways from Summer 2006 11/03/06. Agenda. About EnerNOC Today’s Reliability Issue Current Solution: Demand Response Summer 2006 Demand Response Activity Summary Key Program Design Considerations. get more. About EnerNOC.

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DRCC Webinar: Delivering Demand Response

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  1. DRCC Webinar: Delivering Demand Response Takeaways from Summer 2006 11/03/06

  2. Agenda • About EnerNOC • Today’s Reliability Issue • Current Solution: Demand Response • Summer 2006 Demand Response Activity Summary • Key Program Design Considerations get more

  3. About EnerNOC Founded in 2001, EnerNOC is a technology-enabled, C&I-focused demand response solutions provider. • Proven and growing track record – Approximately 400 MW of demand response capacity from 800 customer sites whose load peaks at over 1,000 MW – adding approximately 10 MW per week • Compelling offering – Full service demand response solutions provider – research, education, permitting, financing, metering, aggregation, enrollment, installation, data and payment reconciliation, maintenance – remove complexity; technology and services platform for comprehensive energy management solutions • Certified provider – Certified to provide demand response services in demand response market throughout the US • Distinguished technology – Provide 24/7, real-time metering and web-based device monitoring and control through open architecture technology that leverages customers existing assets • Significant resources • Human capital – Deep team experience in energy and technology management – 85 employees with more than 140 engineering and management degrees • Financial – Strong balance sheet and impressive financial track record

  4. About EnerNOC: The Energy Network Operations Center EnerNOC enables existing assets with inexpensive, scalable technology to accomplish significant and guaranteed reductions in demand.

  5. Today’s Reliability Issue • Over 2,300 daily high temperature records were set across the nation in July 2006, the hottest month in 70 years according to Weather Almanac • The mean temperature across the US for the months of June, July, and August was the second highest on record according to the National Climatic Data Center • More than 270 people died in a rash of heat-related deaths during the 2006 summer heat waves • All-time electrical peak demand records were set by utilities serving customers in more than 25 states including: California, Texas, Illinois, New York, Pennsylvania, New Jersey, and each of the New England states • Each of the nation's seven regional independent operators of electrical grids, stretching from California to New England, experienced record power demand in late July according to the United States Department of Energy • The peaks set in these regions were not just the result of normal, annual demand growth. On average these peaks were 4.58% higher than in 2005, nearly 100% higher than expected load growth of 2.4% according to the United States Department of Energy

  6. Today’s Reliability Issue All-time electrical peak demand records set in Summer 2006.

  7. Today’s Reliability Issue WASHINGTON, Oct. 15, 2006 — Companies are not building power plants and power lines fast enough to meet growing demand, according to a group recently assigned by the federal government to assure proper operation of the power grid The group, the North American Electric Reliability Council, in its annual report said the amount of power that could be generated or transmitted would drop below the target levels meant to ensure reliability on peak days in Texas, New England, the Mid-Atlantic area and the Midwest during the next two to three years

  8. Generation Capacity With DR kW Demand 24 Hours With DR $/kWh 24 Hours With DR kWh’s 24 Hours Current Solution: Demand Response Demand response is achieved when end-users reduce their demand for electricity from the grid in response to market signals. Reliability/Security –DR can be brought to market more quickly and precisely than comparable generation or T&D, giving grid operators resources needed to better manage reliability NOW while paying end-users to tap into existing resources Price – DR can dramatically reduce pricing power of well-positioned generators and incentivizes end users to become active participants in energy markets – active participation keeps markets healthy and prices low Efficiency – Demand response raises the specter of efficiency. Increased end user market participation puts energy back on the business planner’s map and, when properly deployed, can save end-users 20% or more on energy bills

  9. Current Solution: Demand Response Demand response is achieved when end-users reduce their demand for electricity from the grid in response to market signals. Relay Notification (without third-party DR provider) Distress Signal Relay Notification Demand Response Provider Customer receives email and phone alert Grid Operator Lights automatically dim Customer manually curtails Grid Relief Grid Relief

  10. Summer 2006 DR Activity Summary • EnerNOC managed seven DR events in New England and New York • Total hours: 45.25 • Average event length: 5.7 hours • EnerNOC delivered 246 MW in New England on August 2, representing 51% of the 480 MW that ISO-NE shed through demand response that day • August 1-3: In NYC and LI, DR providers collectively delivered 653 MW - 690 MW three days in a row • EnerNOC managed 30 DR events in California • 17 different event days • 12 PG&E events, 9 SCE events, and 9 SDG&E events • Average event length: 3.6 hours

  11. Summer 2006 DR Activity Summary Demand Response Event Performance: New England, August 2, 2006.

  12. Summer 2006 DR Activity Summary Demand Response Event Performance: New York, August 2, 2006.

  13. Summer 2006 DR Activity Summary ISO New England and NYISO testimonials, August 2, 2006. “Today’s peak record would have been hundreds of megawatts higher if it were not for ISO New England’s demand response programs and conservation efforts of consumers” - ISO-NE August 2, 2006 “The NYISO’s Demand Response customers, however, helped keep the statewide electricity load from climbing even higher by curtailing afternoon usage” - NYISO August 2, 2006

  14. Case Study: Healthcare Customer

  15. Case Study: Government Customer

  16. Case Study: University Customer

  17. Summer 2006 Milestone: DR as an Ancillary Service EnerNOC was the first company to enter PJM’s Synchronized Reserves Market. • Fully integrated market control – PJM’s signal processed automatically by EnerNOC’s NOC and loads are automatically curtailed • 10 minute automatic dispatch • One-minute interval data feeds

  18. Key Program Design Considerations Case Study: California Demand Reserves Partnership • Program Design Challenges: • Inappropriate trigger mechanism • Indistinct day-ahead and day-of notification • Misrepresentative baseline calculation • IOUs offer additional demand response programs directly • Results: • In aggregate across three IOUs service territories, load reduction in the Demand Reserves Partnership (DRP) only accounts for 0.15% of California’s peak demand • In New England, DR accounts for 1.71% of peak demand • In New York, DR accounts for 2.03% of peak demand

  19. Key Program Design Considerations Case Study: California Demand Reserves Partnership Declining and unpredictable performance of the DRP in SCE’s service territory, Summer 2006

  20. Key Program Design Considerations Case Study: California Demand Reserves Partnership → Capacity Bidding Program • To solve DRP challenges, the CPUC, IOUs, DR Providers, and other stakeholders redesigned the program into the Capacity Bidding Program (CBP) • Will be operational in time for next summer’s peak • Refined trigger mechanism • Day-of and day-ahead options • More appropriate baseline methodology • DR Providers (aggregators) may be allowed to participate in additional IOU DR programs

  21. Key Program Design Considerations Demand response can represent between 5% and 10% of peak load control area demand. Case Study – Connecticut • 435 MW of demand response currently in Connecticut ~ 6% of peak demand • EnerNOC manages over 250 MW of Connecticut’s demand response • EnerNOC adds ~3 MW of new DR capacity per week in CT • DR capacity could reach 700 MW or ~10% of peak demand Connecticut – Today 7,000 MW Peak Demand

  22. get more EnerNOC, Inc. 75 Federal Street, Suite 300 Boston, MA 02110 617.224.9900 – Phone 617.224.9910 – Fax EnerNOC, Inc. 24 West 40th Street, 16th Floor New York, NY 10018 212.624.0000 – Phone 212.624.0001 – Fax EnerNOC, Inc. 2100 Geng Road, Suite 102 Palo Alto, CA 94303 650.288.8316 – Phone 650.251.9833 – Fax

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