The Economic Value of Next-Generation DR

As the demand response market evolves with new assets, new programs and higher customer expectations, it is critical to find new avenues of value creation. By applying advanced analytics and predictive controls technology to the forecasting, optimization, and control of a portfolio of demand-side resources, utilities, aggregators and energy services providers can save millions of dollars.

This white paper examines how a next-generation approach can improve the key economic levers in demand response (DR) including reliability of load shed, customer churn rates, marketing/recruitment costs and measurement & verification (M&V) costs. Specifically, this white paper discusses:

• The key business drivers behind the adoption of DRMS (demand response management systems)
• A methodology to quantify the value creation from demand response
• Case study of the net economic impact of next-generation DR programs at a large U.S. Midwest utility