FAQs

1. What is Demand Response?
2. How does Demand Response fit as part of the supply mix?
3. Why is Demand Response important?
4. How can I participate?
5. What are the benefits of participation?
6. How does Demand Response help the environment?
7. What equipment do I need to participate?
8. Where can I get more information on EnerShift?

What is Demand Response?

Demand Response (DR) refers to the short-term reduction of electricity consumption in response to system reliability concerns or a pre-determined market price. DR allows users of electricity to be compensated for reducing electricity demand at times when the system capacity is reaching its limits and during periods when wholesale electricity prices are very high. Reducing use during periods of high demand alleviates strain on the grid and increases system reliability. In addition, when system demand is high and prices rise, users may opt to conserve electricity, rather than consume it at the going price.

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How does Demand Response fit as part of the supply mix?

Although it can be mistaken as energy conservation, DR resources are more closely aligned with generation capacity that can be called upon as electricity demand increases. Demand response is a cost-effective and highly flexible method of managing both supply and demand. DR is less costly than building new generation and transmission capacity and can be called upon more quickly as electricity demand increases. Program participants help to alleviate strain on the grid system when demand is at its peak. In essence, the participant is performing the same function as a generator by supplying power to the grid through actively reducing electricity consumption as required.

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Why is Demand Response important?

Electricity demand in Ontario is at an all-time high. The summer of 2006 saw the peak Ontario demand reach 27,005 MW. As the demand grows, this puts increasing pressure on the existing generation resources. DR is an efficient method to alleviate system strain as it reduces the need for additional generation & transmission resources to meet peak demand, which is often no more than several hundred of hours each year. DR programs provide the flexibility to address system reliability on both the local and provincial scale. Whether aimed at mitigating supply shortages from a given transformer station or securing the reliability of Ontario’s grid, demand response produces results.

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How can I participate?

Demand Response can easily be implemented in an organization regardless of business type. Each industry faces its own specific operational challenges. Rodan Energy will work with your business to identify DR opportunities. Common project types include load shifting, load interruption and behind-the-meter generation. Load shifting enables industrial and commercial consumers to defer operational process to an off-peak period. Load interruption could include a reduction in ambient load, such as lighting and air-conditioning. Load displacement allows participants to employ on-site generators to reduce the power consumed from the system.

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What are the benefits of participation?

By putting the power back in their community, participants help to secure the supply available and play a role in mitigating potential blackouts and brownouts that would have economic consequences within their communities. DR programs also allow the power to be restored to an area more quickly in the event of a power shortage due to unforeseen circumstances, such as a downed hydro line. Through actively reducing consumption, participants ensure the power is first restored to those who need it most.

Program participants will also receive recognition of their involvement through several marketing and communication initiatives.

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How does Demand Response help the environment?

A reduction in demand also produces environmental benefits as it reduces greenhouse gas emissions. The production of 1 MWH produces one tonne in emissions from a coal-powered generating facility or 290 Kg in emissions from a natural gas power plant. In addition, using DR to balance the power supply reduces the need for new generation and transmission capacity which minimizes the potential impact on the environment.

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How does Demand Response affect my bottom-line?

Rodan Energy will actively work with your facility to identify DR solutions that minimize the impact to the business and maximize the bottom-line. The financial benefits to participants are three-fold. Participants receive a capacity payment that is calculated monthly based on the load provided, regardless of whether called upon to curtail usage. An energy payment is provided for the actual reduction in load. This payment is based on the number of hours and amount of load curtailed during a DR event. In addition to the financial incentives, participants’ energy bills will benefit by reducing demand when the electricity prices are at their highest.

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What equipment do I need to participate?

Participants require an interval meter with telecommunications to monitor electricity usage – often supplied by the utility. Curtailment events may be issued via email, fax or telephone and are expected to be implemented on-site by participants.

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Where can I get more information on EnerShift?

For more information on the enerShift Program, please visit www.enershift.com or contact DR@rodanpower.com or call 905-625-9900, choose option 4.