CAISO defers proxy demand response resource sought by storage companies
CAISO is preparing to present the results of its Energy Storage and Distributed Energy (ESDER) Phase 2 initiative to its board in July, but is expected to defer consideration of a PDR product until phase three of ESDER.
CAISO say it wants to better understand the limits of non-generator resources and wants to move consideration of a PDR product to its multiple-use applications initiative related to storage.
The grid operator said in a draft proposal the comments it has received fall broadly into two camps, with energy storage advocates expressing strong and urgent support for the development of a bi-directional PDR product. Other stakeholders said CAISO should give the issue more time to coordinate with the state’s PUC and better understand the retail bill impacts of using customer-sited storage to consume excess load.
The grid operator said PG&E’s excess supply pilot helped inform the PDR effort.
“Two particular challenges PG&E highlighted in their presentation were 1) the impacts of participation on the customer’s retail bill (i.e. how demand charges are affected), and 2) how to ensure directed load consumption actions do not create operational and congestion problems on the distribution system,” ISO officials wrote in the draft proposal.