 |
|
|
|
|
|
|
|
|
|
 |
|
|
Phone: (202) 483-4443
Social Media
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
2005-09-14
Consumers, Suppliers and Energy Technology Vendors Will Benefit from Ability to See and React to Electricity Prices on Real Time Basis
Demand Response Survey Results Available Free of Charge
For Immediate Release - September 14, 2005
Jamie Wimberly, DEFG - (202) 483-4443
Washington, DC ... The Distributed Energy Financial Group LLC (DEFG, www.defgllc.com) and the Center for the Advancement of Energy Markets (CAEM, www.caem.org) released the results today from an on-line survey on demand response issues conducted in July and August 2005. The survey focused on all facets of demand response, but particularly focused on demand response programs at the ISO level as compared to a more market-based approach.
"Survey respondents agreed that demand response, or the ability for consumers to react to a meaningful price signal to change their consumption in a timely manner, is an important part of the nation's energy equation," stated Jamie Wimberly, CEO of the Distributed Energy Financial Group. "Whether through a program or a market-based offering, consumer preferences need to be factored into pricing. The survey results confirmed, once again, that pricing is the key to an efficient, robust and sustainable market for electricity."
Key findings from the survey include:
- Survey respondents state the primary reason for implementing DR is to reduce peak costs (57% rating "high importance") and reduce costs (40% rating "high importance).
- The California region, PJM and New York ISO were cited as having the most successful DR programs.
- Many factors were cited for why a particular ISO program was successful - compensation, differentiated payment/incentives, and program design were identified as top factors.
- No one approach (ranging from administrative, to mixed, to market-based) was picked as the approach best suited for a successful DR program - the choices were evenly split.
- To evolve towards a more market-based approach, the three top changes that respondents need to occur include (in this order): "Change the rules of the game," "Improve customer awareness," and "Symmetrical treatment of supply and demand."
- When survey respondents were asked to choose their "preferred" approach to DR, nearly 70% chose either "market-based" or a "mix but leaning towards market-based."
- Respondents offered many other changes (other than those listed in the previous question) that would be required for more market-based DR to be successful. The most cited changes include the following themes: 1) Work out a "win win" arrangement with the utility and customer, providing for adequate incentives and cost recovery to the utility; 2) Offer a clearer value proposition/compensation for the customer; 3) Market design and rules; and 4) More marketing and education/public awareness.
- The majority of respondents felt that DR would benefit all customer classes, but would particularly benefit large industrial and commercial customers.
- Survey respondents were generally positive about the impacts that DR will have on new technologies, citing metering, smart appliances, controls/ switches, and renewable, as the biggest winners. Respondents stated that DR does not favor particular technologies.
- The biggest motivator cited to encourage customers to participate in DR programs is "reduce monthly bills." "Fair compensation (rebates)" also scored well.
Over 100 leading executives, regulators and other stakeholders responded to the survey. The presentation of the survey results is a 36 slide power point presentation with findings, graphic presentations of the results and summaries of selected responses. The survey results will be incorporated into the final report of the Demand Response Working Group due to be completed in October 2005.
A free copy of the survey results are available by contacting Nat Treadway. To receive a free copy, contact information must be provided in the e-mail request.
Distributed Energy Financial Group, LLC
Distributed Energy Financial Group, LLC (DEFG, http://www.defgllc.com) is a specialized financial services firm providing consulting, advisory and capital placement services designed to link energy technology companies to the capital markets. DEFG recently launched the Distributed Energy Stock Index (DESI) and will originate a fund by the end of the year.
Center for the Advancement of Energy Markets
The Center for the Advancement of Energy Markets (CAEM, http://www.caem.org) is an independent, non-profit, public policy think tank that supports an effective transition from the monopoly model of energy regulation to an open-access, customer choice model. |
|
|
|
 |
|
|
|
|
.gif)
.jpg)
