Grid operators pay businesses that agree to reduce load during grid emergencies. We check whether your facility is a fit, size a commitment you can actually deliver, arrange the enrollment through a curtailment service provider, and check that you're paid correctly.
You commit an amount of load you can reliably drop when called. That commitment is valued at the capacity price whether or not an event is ever called. At $325/MW-day, 500 kW is worth about $59,300 a year in gross value.
When the grid is under strain, you're called to reduce. Notice can be as short as 30 minutes. If you don't deliver what you committed, penalties apply, so the commitment has to be sized honestly.
If an event lands on one of the grid's peak hours, the same reduction also helps lower your capacity tag for the following year.
For facilities in Pennsylvania, New Jersey, Ohio, Maryland, Delaware, DC, and northern Illinois. You take part through a curtailment service provider that registers your load and handles dispatch and settlement.
For facilities in Connecticut, Massachusetts, Rhode Island, New Hampshire, Maine, and Vermont. Recent forward auctions cleared at $2.531, $2.590, and $3.580 per kW-month.
The real test isn't size, it's whether you can reliably reduce on short notice without real harm to operations.
The biggest mistake in demand response is committing more than your operations can reliably drop. We size conservatively and put the numbers in writing before you commit.
How the money flows: payments come from the grid operator's capacity market and pass through the curtailment service provider. The provider and the broker who arranges the enrollment, including us, are typically paid a share.
We look at 12 months of interval data to see what's running during likely event windows.
We match the commitment to what you can drop every time, with a margin for safety.
We arrange the enrollment through a curtailment service provider and handle the paperwork with you.
After events and settlements, we check that you were credited correctly.
We'll review your load, size a commitment you can deliver, and show the value in writing. Free, no obligation.
Rather talk? Call Jordan at 610-904-9403