Lessons learned from real-life implementation of demand response management

PJM provides market opportunities for demand resource in energy (day ahead, real time), capacity and ancillary service markets. There are approximately 7,000 sites with 5,700 MW of available demand response registered across 11 States with expected annual revenue of $ 160mm in 2008. Each demand response transaction may have up to 5 different entities involved to complete where the market rules and procedures change frequently and are different for each wholesale services. As administration becomes more time consuming for participants it reduces the amount of time focused on growing demand response and may result in lost opportunities in the market. The following are some lessons learned from PJM´s experience: measurement and verification, workflow needs to help participants get work done quicker and transparency that will help align perceptions with reality.