Load Shifting Strategies

Energy Curtailment Strategies to Mitigate Capacity Charges

Should I peak shave or participate in demand response?

Aspen Energy continues to see an increase in the number of businesses willing to curtail their summer load to receive benefits from Peak Response or Demand Response Programs. Though not every company can participate in these programs, the ability to curtail is much easier than a business initially believes because it is not an all or nothing type of program. This is especially true with regard to a Peak Shaving Program. Any curtailment during a Peak Coincident hour can result in significant Capacity Charge savings the following year.

Demand Response

The 7 Independent System Operators (ISOs) such as CAISO, ERCOT, MISO, NEISO, NYISO, PJM & Southwest Power are responsible to ensure the reliability of the electricity grid. These responsibilities are extremely difficult in the summer months due to increased demand and constraints caused by increased electric use to cool homes and businesses. Balancing this supply and demand on the electricity grid is also expensive, and some ISOs utilize Demand Response (DR) to address these annual problems. DR decreases the cost of energy while increasing grid reliability by allowing DR Participants (businesses who curtail energy use during specific days and hours of the summer) to sell back their unused load and receive monthly to quarterly compensation for the service. This is a terrific strategy for any company who possesses on-site back up generation or can shift their normal load between June and August between the hours of 3pm-6pm. The best part of DR is that there are no penalties for non-performance and payments are received during the year you are enrolled.

Peak Shaving

Peak Shaving, also referred to as Peak Response, is a voluntary program which allows a company to lower their Peak Load Consideration (PLC) Value by curtailing on days the Grid is most stressed, which will ultimately decrease their capacity (or demand) charges the following year. The benefits of Peak Shaving over a DR program are that cost savings typically double what a company will receive in DR payments.

On-Site Backup Generation

Whether you choose to participate in Demand Response, voluntarily choose to curtail energy through a peak response program or you just want the reassurance of uninterrupted service, having an On-Site Backup Generator will allow your company to perform efficiently. Aspen Energy offers programs to install Backup Generation at minimal to no cost when you procure your energy through us.

To determine if these strategies are best for your business or to learn more about our Professionally Managed Energy Programs, contact us today at (800) 926-0046.

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  • DR, Peak Shaving & Backup Generation
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    Pools & Aggregations