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The first step for managers in determining whether to participate in a utility demand-side-management program is to bring the local utility into the process. Programs vary by utility, as do requirements and benefits. To benefit the utility and the customer, programs must be designed to meet the operating needs of the facility.
The utility can explain participation requirements and is likely to have several years of data on energy use and metered demand for the facility. Both data sets are necessary for managers to evaluate the potential benefits of program participation.
The first indication of a facility's suitability to participate is its load profile. A relatively flat load profile is less likely to produce financial benefits for a customer than a profile with a significant difference between peak and off-peak hours. By comparison, a load profile with a large variation offers potentially large benefits.
But a facility's load profile only identifies the potential benefits from participation. Managers also need to identify and quantify individual loads the facility can curtail or shift to off-peak hours to meet program requirements. The first step in the process is to identify and quantify major electrical loads that contribute to a facility's peak demand. The next step is to evaluate each load for its potential to temporarily interrupt their operation during peak hours or to shift the time they operate to off-peak hours.
The key to successful participation in a demand-response program is support within the facility. Managers who try to take part in demand-response programs without the support of the facility's occupants are more likely to fail. When managers try to impose programs without understanding occupants' willingness to participate, everyone becomes an exception.
Having Utility Program Important for Demand Response Plan