WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 91
How we see this market / issue
• Tapping into customer demand flexibility offers Hydro One a
new and cost-effective way (a non-wires alternative) to meet
emerging system needs and help alleviate some upward
pressure on rates.
• Hydro One is ideally positioned to engage DER-owning
customers, reward them for their investments, and aggregate
the value of their participation in the operation of a clean and
reliable grid by creating a Virtual Power Plant (VPP).
Giselle DeGrandis
Manager, Business Development, Hydro One
Giselle is part of the Customer Strategy & Energy Transition team
and leads Hydro One’s residential demand response (DR) program,
called myEnergy Rewards.
What we are doing
• Hydro One is collaborating with the IEA in a study to test
and evaluate customer engagement methods that result in
desired energy behavior change.
• Hydro One is aggregating customer smart devices into a
geographically segmented, all-season, multi-DER VPP by
incentivizing customer participation.
• The OEB provides funding to income qualifying customers
for base-board smart thermostats.
• Planning and Operations teams are assessing how this helps
them meet local distribution needs and quantify the deferral
value of planned system investments.
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Most USA utilities offer DR options to their commercial
and industrial customers. Additionally, the country's seven
independent system operators/regional transmission
organizations (ISO/RTOs) sponsor DR programs, allowing demand
response capabilities to bid into markets for energy, capacity,
or other grid-support services. These capabilities often include
reducing consumption or using behind-the-meter generators.
Time-variable pricing (TVP), where electricity prices vary by
time of day and season, is widespread. Common TVP options
include time-of-use (TOU) rates, real-time pricing (RTP), dayahead hourly pricing, and block-and-index pricing. TOU rates
typically feature higher prices during afternoon peaks, lower
overnight rates, and intermediate "shoulder" periods.
DR programs and TVP arrangements reflect the dynamic nature
of electricity production costs, which can vary significantly.
These programs incentivize consumers to manage their loads,
providing substantial benefits for those who can adjust their
usage in response to market signals, thereby helping to stabilize
the grid and reduce costs.
The more these flexibility are automated, the more efficient
DR programs and price signals are.
WEMO 2024
The need for a demand
side energy transition
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