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Page 2 >> By Jesse Berst
Enbala Power Networks is an intriguing example of this new, ultra-nimble form. The Toronto-based startup originally played in the building energy management space. Now it has pioneered demand response to provide regulation services to independent system operators (ISOs).
"Traditional" DR may be called as seldom as 4 to 5 times per year. DR for regulation may be asked to react every 4 seconds. Traditional DR is unidirectional -- the provider reduces demand upon request. DR for regulation is bidirectional. It has to instantly reduce demand or increase it as needed to keep the system in balance.
Honeywell and others talk about automated DR that will someday be fast enough for regulation and ancillary services. In fact, Honeywell was just tapped for Europe's first automated DR pilot. But Enbala is doing it today.
Making it acceptable to customers
That is complicated enough, but another layer of complexity is added when Enbala aggregates multiple loads and then optimizes which loads to call and when. Enbala calls this process "making DR acceptable to the load." The firm loads in dozens of variables, from weather forecasts to equipment characteristics to customer preferences. Then it finds the combination that will provide the power needed with the least impact on customers.
Enbala currently serves PJM and IESO. Look for it to hook up with other ISOs soon, and perhaps even with vertically integrated utilities.
Enbala CEO Ron Dizy told me the equipment typically costs $40-$50,000 to install at the customer premises. He claims it can generate $100-$200,000 per year in gross revenues.
Today, generation supplies 99% of all regulation. In five years, Dizy hopes, automated DR can be providing 20 to 30%. As long as grid-scale storage remains too pricey and too capital intensive for most applications, he may get his wish.
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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Next page: Watch a video about the Enbala Power Network >>
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