Project ResponDER
Project ResponDER created a new demand response market design where Silicon Valley Clean Energy (SVCE) – a community choice aggregator (CCA) – could produce clean energy services from its customers, to promote grid resiliency.
Local demand response market
Use case: Project ResponDERElectron and Silicon Valley Clean Energy (SVCE) collaborated through the Innovation Onramp program to design a new market to incentivise grid resiliency in project ResponDER.
SVCE’s challenge
SVCE was procuring an increasing volume of wind and solar generation for its portfolio, often resulting in imbalance during late morning and early evening. At these times of high demand and low generation, SVCE was exposed to the wholesale market, which has cost and carbon implications.
The Virtual Power Plants’ challenge
This proved more of an opportunity for the VPPs aggregating assets, rather than a problem. The VPPs needed access to the system to be able to support with operational balancing of the high voltage network and provision of capacity.
Solution for SVCE
To address these challenges, Electron designed and deployed a market for two types of event:
- Demand response events: London Hydro procured demand turn down service from its customers to ensure grid stability during periods of high demand
- Community energy events: Local prosumers selling their excess solar energy to local customers.
Solution for the Virtual Power Plant
The flexibility marketplace design enabled multiple aggregators operating multiple device types to enrol and participate in each market event.
This market operated as a continuous market based on forecasted day-ahead energy prices, closing before the CAISO day-ahead energy market. The aggregators – or Virtual Power Plants (VPPs) – participated in the market on behalf of DER owners and SVCE customers, as the sellers.
Project outcome
The ResponDER market design provided a first demonstration of using a pay-for-performance variable price to incentivise load reduction within an LSE’s territory.
The market allowed SVCE to engage multiple flexible technologies, via aggregators, to request demand response based on three value streams:
- Minimisation of wholesale market exposure (estimated at $17m 10yr NPV)
- Reduction in Resource Adequacy payments (estimated at $20M 10-yr NPV); and
- Reduction of hourly carbon emissions (estimated at 250k mTons CO2/yr saved)
Working together
For a better futureWhether you’re buying flexibility or providing grid services, use a marketplace that suits your needs.
Let’s accelerate the transition to Net Zero energy together.
