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> Home > Markets > Demand Response > Capacity Market |
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Capacity Market |
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With the implementation of the forward capacity market, the Reliability Pricing Model (RPM), demand customers can offer demand response as a forward capacity resource. Under this model, demand response providers can submit offers to provide a demand reduction as a capacity resource in the forward RPM auctions. If these demand response offers are cleared in the RPM auction, the demand response provider will be committed to provide the cleared demand response amount as capacity during the delivery year and will receive the capacity resource clearing price for this service. In the first annual RPM auction which was held in April 2007 for the 2007/2008 planning period, 127.6 MW of demand response offers were cleared. In addition to the forward RPM auction, demand response can be committed as full Emergency Load Response three months before the delivery year begins in order to offset capacity payments. Both Load Serving Entities (LSEs) and CSPs can aggregate and register demand resources as Full Emergency Load Response on a nearer-term basis. The requirements for Full Emergency Load Response, called Interruptible Load for Reliability (ILR) under the RPM construct, are the same as those of the predecessor, Active Load Management (ALM).
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