Demand Response Advanced Measurement Methodology
Analysis of Open-Source Baseline and Comparison Group Methods to Enable CAISO Demand Response Resource Performance Evaluation Demand response is a critical resource that must scale effectively to balance the grid at a time of increasing heat waves, peak supply constraints, and a rapidly evolving generation mix. However, questions around measurement accuracy and best settlement practices can cloud performance data and negatively affect future market design and policy. California’s climate change-induced rotating power outages of August 2020 exposed shortcomings of common demand response measurement methods. Certain methodological restrictions have since been eased, but accuracy and reliability remain concerns. In addition, the high degree of variation in current demand response methods has created significant uncertainty for demand response providers, utilities, forecasters, and grid operators. The FLEXmeter demand response measurement methods can offer a more robust path forward to enable demand flexibility resources as a grid resource. FLEXmeter comparison group methods are designed to be revenue-grade, utilizing open-source code and verifiable implementation to enable auditable settlement. These methods were first developed and tested for the US Department of Energy and National Renewable Energy Laboratory with the support of MCE and OhmConnect. After reviewing the results of this study, the California Independent System Operator (CAISO) engaged Recurve to conduct a similar analysis statewide, refine the FLEXmeter methods, and standardize an approach that can be deployed at scale to enable its use as a performance measurement for supply-side demand response resources participation in the CAISO market. This study demonstrates the effectiveness of the FLEXmeter methods for assessing DR performance during California’s mid-August 2020 heatwave and resulting rotating power outages. Recurve analyzed 38 demand response events spanning Investor-Owned Utility (IOU) and Community Choice Aggregator (CCA) territories across 11 climate zones, multiple demand response providers (DRPs), and more than 24,000 participating residential and commercial customers. The FLEXmeter approach produced quality comparison groups and successfully measured impacts even during extreme events. The measurement methods, open-source framework, and streamlined process are significant and timely given the critical role DR can play in a clean energy future and the deep discussions on integrating its flexibility into the future grid. |