Southern California Edison Integrates Demand Response into Wholesale Market
In August 2015, Southern California Edison (SCE) announced the integration of approximately 1,118 MW of demand response resources into wholesale energy markets managed by the California Independent System Operation (CAISO).
- SCE’s actions follow the development of rules allowing distributed energy resource aggregators to participate in wholesale energy markets; CAISO released the final rules in June 2015
- SCE’s demand response programs include residential, commercial, and industrial customers who, in return for a bill credit, reduce energy consumption when requested by the utility
- SCE aggregated more than 320,000 customers participating in demand response; individually these customers would be too small and not allowed to participate in wholesale markets
- The aggregated demand response exceeds the nameplate capacity of many of the largest electric generation plants in California
- Demand response programs alleviate stress on the electric grid during peak load periods or emergency situations
Across the United States, the rapid growth of distributed energy resources is forcing regulators and utilities to re-evaluate how to best integrate and leverage these resources. The integration of distributed demand response resources in California illustrates how changes to the market rules can unleash potential of these distributed resources.
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