Energy Users who participate in this category of Demand Response do so outside of the market and under emergency situations only. In essence in some time of “market failure” where there is insufficient supply to meet demand.
That’s different from two other types of Demand Response that operate for economic reasons:
Other Type 1) Demand Response might be dispatched by some third party, in response to some form of pricing signal – in which cases the Demand Response is an integral part of the market.
Other Type 2) Additionally, we work with many energy users who self-dispatch their demand response as an outcome of real-time exposure to spot pricing. Also in this case, this is integral to the market (though not dispatched by some central or third party).
In the NEM, one type of this type of demand response dispatched is the RERT (“Reliability and Emergency Reserve Trader”)
We’ll add more here as time permits…