Price Responsive Demand in New York Wholesale Electricity Market using OpenADR

TitlePrice Responsive Demand in New York Wholesale Electricity Market using OpenADR
Publication TypeReport
LBNL Report NumberLBNL-5557E
Year of Publication2012
AuthorsKim, Joyce Jihyun, and Sila Kiliccote
Date Published06/2012
InstitutionLBNL/NYSERDA
Keywordscommercial, demand response, dynamic pricing, mandatory hourly pricing, open automated demand response, openadr, pilot studies & implementation, price responsive demand
Abstract

In New York State, the default electricity pricing for large customers is Mandatory Hourly Pricing (MHP), which is charged based on zonal day-ahead market price for energy. With MHP, retail customers can adjust their building load to an economically optimal level according to hourly electricity prices. Yet, many customers seek alternative pricing options such as fixed rates through retail access for their electricity supply. Open Automated Demand Response (OpenADR) is an XML (eXtensible Markup Language) based information exchange model that communicates price and reliability information. It allows customers to evaluate hourly prices and provide demand response in an automated fashion to minimize electricity costs. This document shows how OpenADR can support MHP and facilitate price responsive demand for large commercial customers in New York City.

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