Ontario has issued a 100-MW demand response solicitation for a pilot project that that will be operated by the Independent Electricity System Operator (IESO).
The pilot project will attempt to uncover benefits of demand response beyond those already known.
The program specifically will try to show how demand response can provide services now customarily offered by generators and other suppliers. In particular, the IESO seeks understanding of demand response in:
- Five-minute load following. Responding to real-time market prices and adjusting power consumption on a five-minute basis as Ontario’s demand for electricity fluctuates throughout the day
- Hourly load following. Responding to hour-ahead market prices and adjusting power consumption on an hourly basis as Ontario’s demand for electricity fluctuates throughout the day
- Unit commitment. Committing to load curtailment day-ahead or four-hours ahead of real time in return for certain guarantees
Proposals can offer five-minute or hour-ahead load following. Applicants can choose whether or not to incorporate unit commitment as part of their offering.
“Demand response resources are making significant contributions toward meeting Ontario’s energy needs, and this will be increasingly true in the years ahead,” said JoAnne Butler, IESO vice-president of market and resource development. “This procurement will add to our understanding of how these resources can best contribute to our grid and how to most effectively integrate them into the IESO-administered markets.”
The IESO seeks projects that offer 1 MW to 35 MW of demand curtailment.
Winners will be required to vary their consumption in response to IESO dispatch instructions for at least 100 hours per contract year.
The IESO will judge proposals on a 60 point scale, with 40 points going to technical capability (availability and ramp time) and 20 points to proposed capacity price.
A briefing session will be held April 14; the deadline to submit an ‘intent to participate’ is May 14. Proposals are due June 4. The IESO expects to select preferred proposals June 25 and award contracts July 23.
The request for proposals is available here.
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