Ryn Hamilton Consulting has been participating in the North American Energy Standards Board stakeholder process to develop measurement and verification protocols for demand response and energy efficiency. The intention is to elevate M&V practices while safeguarding the need for regional flexibility.
Protocols developed by NAESB have now moved on to their respective regulatory authorities. In February 2013, FERC adopted NAESB’s proposed standards for M&V of demand response and energy efficiency in Order 676-G.
Historically, FERC actions have not been well coordinated with the states. The NAESB collaborative process was an attempt by FERC to bring together diverse stakeholders.
FERC has shown a keen interested in developing demand-side resources that can compete with fossil fuel based generation. These include direct bid-in dispatchable demand response, ancillary services and price responsive programs. In addition, FERC intends for energy efficiency to participate more broadly in wholesale markets.
Several ISOs/RTOs have capacity markets that permit demand response to bid against traditional generation. A host of entities are involved in these new markets, including curtailment service providers, large end users and utilities.
In addition, utilities in ISO New England and PJM Interconnection markets are expected to bid their energy efficiency portfolios into the forward capacity market.
Ryn Hamilton participated in NAESB Demand Response and Energy Efficiency working groups to help resolve wholesale market issues, including telemetry requirements, clarification of role of curtailment service providers, statistical significance in sampling and regression, meter accuracy (pre- and post-event) and demand response availability performance criteria.
On the retail side, Ryn Hamilton has been participating on a parallel track on the design of model business practices for both demand response and energy efficiency. Ryn Hamilton was engaged in developing protocols for dispatchable demand response programs to codify processes and data structures to standardize and facilitate third party (curtailment service provider) enrollment of electric customers into distribution company demand response programs.
A final set of NAESB retail protocols were submitted to NARUC in late 2012 for consideration. Subsequently, a handful of state regulatory commissions have expressed early interest in possible adoption.