Responsive Economic Dispatch

Weather extremes can happen in any market, but for California and Texas customers who experience extreme summers, and the Northeast with their frigid winters, it can mean high demand, tight capacity, and the threat of price spikes driven by scarcity market conditions.

Customers in these markets are known for confronting challenges head-on with a blend of proactive independence, flexibility, and a get-it-done attitude. These are exactly the traits that led our team to develop a program tailor-made for the ERCOT, CAISO & NE-ISO markets — Responsive Economic Dispatch (RED). With RED, customers could earn thousands of dollars in bill credits when they lower energy demand during peak periods.

RED rewards commercial energy users who commit to reducing their energy consumption at key times of peak demand and stress on the grid. In return for reducing, they earn revenue or credits to their energy bill based on the amount of electricity they curtail.

Getting paid for using less is an attractive concept. It’s also one that’s good for the grid in terms of reducing peaks, avoiding brownouts, and eliminating the need for inefficient power plants to be brought out of mothballs to meet demand on those extreme weather days.

The RED program is designed to be a user-friendly curtailment option for businesses with flexible load. Here are some specific ways it stands out:

• Customers receive a day-ahead notification of the need to reduce, which gives them a chance to put their reduction plan into action. Added time means a less chaotic and more orderly process and a way for customers who need more time to make adjustments to their operations the ability to participate.
• Our RED program is built to include as many customer types as possible, with a low minimum performance requirement and no penalties.
• Our program offers two-hour events, which allows more load to participate. Shorter event duration also means less disruption and a quick return to normal business.

Of course, the hallmark of any effective curtailment program our team puts in place remains. That means a customized, energy-efficient reduction action plan developed in tandem with a deeply rooted, inherent understanding of each customer’s business and electricity usage. Invariably, that leads to a seamless curtailment process, with little or no impact on day-to-day operations — whether it’s a hospital, a just-in-time manufacturing facility, a data-driven financial institution, or any of the more than 5,000 organizations where our team has already delivered innovative curtailment solutions.

NRG can help you determine if you have valuable flexible demand and the potential to generate savings this year. Learn more about flexible demand.

And to learn more about RED and how your businesses can use it to earn thousands in bill credits, contact your energy sales representative.

ERCOT Specific Notes:

2022 has already seen pricing volatility due to not only warm temperatures, but the lack of wind generation. 

As ERCOT relies more and more on renewable energy, its intermittency can contribute to the price volatility. 

Flexible load becomes increasingly valuable as intermittent renewable generation increases in importance in the ERCOT market.