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Stakeholder MeetingFebruary 13, 2008
Interaction between Scarcity Pricing and Demand Response
Dongqing Holly Liu, Ph.D.Senior Market and Product Economist
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Types of Demand Response Programs
Participating Load – Dispatchable Demand Response Capable of Day-ahead & Real-time participation
Non-Participating Load – Price Responsive Demand Response Day-ahead only
Emergency Triggered Interruptible Load CAISO declared emergency or local transmission
emergency
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Participating Load – Dispatchable DR
Fully dispatchable load acting as a resource bid at nodal level or Custom LAPs
Market - DAM & RTM; Product - Energy, A/S, and RUC
Able to set DA/RT nodal prices
Can directly contribute to the relief of reserve shortage
Load Curtailment
MW
Base Load Schedule = max. MW in submitted Bid
$/MWh
Minimum Load
Market Clearing
Price
Price-Taker Bid
Range
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Non-Participating Load – Price Responsive DR
DA Energy only participation at Default LAPs
Cannot bid into RT, but can adjust consumption at RT
NPL can only set DA Default LAP energy prices
Load reduction provided by both DA and Day-of NPL DR can indirectly contribute to the relief of reserve shortage by reducing the overall load on the system which may reduce A/S requirements in RT.
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Emergency Triggered Interruptible Load
1700 MWs of Interruptible Load can be called upon only during a CAISO declared Stage 2 & 3 Emergency or for a local transmission emergency
No direct participation in DA or RT energy and capacity markets
If the existing Interruptible Load programs were modified to provide bids into the CAISO markets, then these resources could directly help reduce or avoid scarcity situations.
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Summary
Types of Demand Response Programs
Participating Load – Dispatchable DR
Non-Participating Load – Price
Responsive DR
Emergency Triggered DR
Market DAM, RTM DAM No direct
participation
Product Energy, A/S, RUC Energy No direct
participation
Able to Set Market Clearing Price?
DA & RT Nodal Prices DA LAP Prices No
Can be Used to Relieve Shortage? Yes Yes No
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