PG&E IRM2 Pilot

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What is the IRM2?

The Intermittent Renewable Management Pilot Phase 2 (IRM2) is a PG&E Pilot focused on integrating demand-side resources into the CAISO market.  The Pilot enables participants to earn capacity and wholesale payments through direct participation in the CAISO using the Proxy Demand Resource (PDR) product.  Olivine acts as the Pilot administrator and CAISO Scheduling Coordinator. While the initial phase of the pilot is limited to the Day-Ahead Market, a subsequent phase will add Real-Time markets and services.

Who Can Participate?

The pilot is open to individual customers and entities acting as aggregators who can meet requirements are eligible to participate up to the pilot’s subscription level.  All participants must take distribution service from PG&E.

Key Eligibility Requirements:

  • One or more customer locations within a single region as defined by the CAISO (Sub Location Aggregation Points or Sub-LAPs) able to be combined into a single demand response resource.
  • The same Load-Serving Entity (LSE) must serve all customers within a resource.
  • Resource able to achieve a minimum curtailment of 100 kW.
  • Aggregators may apply additional requirements for customers to participate within their aggregations.
  • Customers must have an interval meter and cannot participate in any other demand response program while participating in this pilot.
  • Eligibility for each service account will be confirmed by PG&E

Key Participation Requirements:

  • Monthly capacity nominations are made per resource.
  • Bids at or above the nominated capacity for a minimum of 72 hours per month in either 3 or 6-hour contiguous blocks.
  • Bids can be made for any day or time.
  • Execution of appropriate participation agreements with Olivine.
  • An additional agreement with the LSE is required if PG&E is not the LSE.

Settlement Payments:

  • Performance is calculated by a standard “10 in 10” baseline using an average of the most recent 10 similar non-event days, subject to a 20% morning-of adjustment.
  • Capacity payments are $10/kW-month based on a weighted average of performance for each event hour.
  • Participants will receive the CAISO calculated settlement.  Participant is responsible for performance charges.  Costs are calculated for each award hour with over-delivery paid and under-delivery charged to the participant based on real-time prices.
  • All payments will be made to the Participant by Olivine.

How Do I Get Involved?

The IRM2 pilot has been completed.  For more information on its successor pilot, click here: PG&E Supply Side Pilot.

To view the CAISO Market Basics Training that Olivine provided to participants, click here: CAISO Market Basics