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The Power of US PDR™ Proof of Concept

October 1st, 2010 by Beth Reid

Under The Power of Us™ initiative, Olivine develops campaigns and proof of concept projects to demonstrate the positive impact that can be made by aggregations of smaller resources.   The first such project – the Power of Us™ PDR Proof of Concept – undertakes the entire process required to bid a grouping of Direct Access customers into the wholesale market.  The project itself is not intended to provide meaningful Demand Response (DR) to the grid; instead, it is intended to uncover challenges in bringing DR to the grid, providing an opportunity to address issues and remove barriers for the benefit of California and other regions in North America.
The Power of UsTM PDR Proof of Concept has used the California Independent System Operator (CAISO)’s recently designed Proxy Demand Resource (PDR) product, which allows Demand Response (DR) to participate directly in the wholesale markets as directed by FERC Order 714.  While PDR is currently unavailable for the majority of California customers due to the current status of the California Public Utility Commission proceeding on direct participation, Direct Access customers are able to participate directly today.

While Direct Access customers can bid today, none have.  This comes after a long stakeholder process to develop and implement PDR, and its availability for a year subsequent to that.   With DR being a potentially critical part of California’s renewable resource integration goals, Olivine designed and executed this project to understand the barriers and challenges associated with integrating directly into the wholesale market with lessons learned applicable for both Direct Access and Bundled Customers, (who are expected to be allowed to participate in coming months).

Many lessons from this project have already been learned.  Ultimately, Olivine will compile this information into a paper along with some possible solutions and recommendations, documenting the steps taken, the timeline and effort required to develop, deliver and settle demand response as PDR to support the development of additional, realistic demand response offerings.

These posts chronicle the steps taken in this project including some lessons learned, part of Olivine’s Power of Us™ initiative.

Follow this link to view all posts for this project.

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