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Market and Policy Barriers for Demand Response Providing Ancillary Services in U.S. Markets

Market and Policy Barriers for Demand Response Providing Ancillary Services in U.S. Markets

Full Title: Market and Policy Barriers for Demand Response Providing Ancillary Services in U.S. Markets
Author(s):   Peter Cappers, Jason MacDonald, Charles Goldman
Publisher(s):  Lawrence Berkeley National Laboratory
Publication Date: March 1, 2013
Full Text: Download Resource
Description (excerpt):

In this study, we attempt to provide a comprehensive examination of various market and policy barriers to demand response providing ancillary services in both ISO/RTO and non-ISO/RTO regions, especially at the program provider level. It is useful to classify barriers in order to create a holistic understanding and identify parties that could be responsible for their removal. This study develops a typology of barriers focusing on smaller customers that must rely on a program provider (i.e., electric investor owned utility or IOU, ARC) to create an aggregated DR resource in order to bring ancillary services to the balancing authority.ii The barriers were identified through examinations of regulatory structures, market environments, and product offerings; and discussions with industry stakeholders and regulators. In order to help illustrate the differences in barriers among various wholesale market designs and their constituent retail environments, four regions were chosen to use as case studies: Colorado, Texas, Wisconsin, and New Jersey. We highlight the experience in each area as it relates to the identified barriers.

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