Demand-side technology passes important test in Ontario

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Quick Take: We've known for a while that demand-side technologies can shift peak loads – what I often refer to as demand response 1.0. But a long-term goal has been to move to DR 2.0 where those technologies tackle more difficult problems.

One of the most challenging of those problems is regulation, the second-by-second adjustments that occur to keep power systems in balance. Regulation requires split-second response time.

Now an Ontario firm has completed a trial that demonstrates that the demand side can indeed react in time. And that's good news for just about everyone. Including DR companies that can duplicate this technical achievement, since they can now play not just in the capacity market but in the even more lucrative market for regulation and ancillary services. - By Jesse Berst

Toronto-based ENBALA Power Networksâ„¢ has successfully completed an alternative technologies trial with Ontario's Independent Electric System Operator (IESO) that demonstrated how its technology can provide regulation service to electric system operators by developing a network of large demand-side assets.

ENBALA's news release explained, "Regulation Service acts to match electric supply to demand on a second-by-second basis across the province. By providing Regulation Service through demand-side assets, ENBALA can help electricity system operators make the grid more robust and encourages end-user participation while allowing generators to run more efficiently."

During the trial, EISO was looking for innovative technologies that would allow institutional, industrial and commercial electricity consumers to provide regulation service, which is typically provided by generators.

Ron Dizy, ENBALA president and CEO, commented "Providing grid balance by harnessing the flexibility of demand-side assets helps the EISO to maintain the reliability of the electric power system and it creates a new revenue source for the organizations that own the assets."

Bruce Campbell, VP for Resource Integration at EISO, said EISO is searching for ways to integrate non-generation alternative technologies as potential providers of regulation service to the electric grid.

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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