Utility companies around the world use incentives to pay consumers who perform demand response. Usually these customers are large companies, factories, etc. To reap the benefits of the incentives, the consumer must have a certain baseload demand usage. I have gathered widely used incentive programs currently (2013) in the market. These programs are gathered from [1] [2] [3].

Scheduled Load Reduction Program (SLRP)

  • Consumer receives $0.10 per kWh for reduction when scheduled.
  • The load reduction must be at least 15 percent of your average monthly demand or 100 kW, whichever is greater.
  • No incentive given if reduction not at least 15 percent.

Demand Bidding Program (DBP)

  • Consumers are provided event notice (day-ahead or hour-ahead).
  • Consumers submit bids for participation in load reduction during the time period.
  • Minimum reduction time is 2 hours of at least 50 kW each hour.
  • Incentive: $0.50/kW per hour for day-ahead events and $0.60/kW per hour for day-of events.

Capacity Bidding

  • Consumers create bids on a monthly basis.
  • Program is flexible allowing consumers to adjust bids each month.
  • Consumers can determine how many hours they want to participate when an event occurs.
  • Capacity Bidding event notice sent in day-ahead or real-time (customer choice).
  • Consumers receive incentive payment for load reduction.
Listed above are a few of the incentive programs widely used by multiple utility companies in the United States. There is a lack of incentive programs due to insufficient data to prove that programs are effective.
[1] “Demand response programs – pacific gas and electric,” http://www.pge.com/mybusiness/energysavingsrebates/demandresponse/.
[2] “Demand response programs – southern california edison,” https://www.sce.com/wps/portal/home/business/savings-incentives/demand-response.

[3] Others

  • San Diego Gas and Electric (www.sdge.com)
  • Con Edison (www.coned.com)

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