Demand Response: A Market that Pays Demand response (DR) is a series of programs sponsored by the power grid, the most common of which pays companies to be on call to reduce electricity usage when the grid is stressed to capacity. Companies typically participate in demand response programs through Curtailment Service Providers (CSPs), who coordinate the curtailment events and share the flow of payments from the Independent System Operator (ISO). In demand response 1.0, CSPs drove the process, selling a relatively new and opaque service at a high premium. Customers often complied, treating DR payments as 'found money'. Yet customers had little visibility into what a fair share of their payout should be or knowing there was actually more revenue available to them. The World DR Exchange changes that. Welcome to Demand Response 2.0
Phil Adams on the World DR Exchange
Just as the World Energy Exchange has transformed retail energy procurements, the World DR Exchange marks an important evolutionary step in demand response - the creation of a liquid, transparent and efficient marketplace for DR. With the World DR Exchange, customers can now source DR more efficiently, with CSPs competing directly for their business in highly-structured online auction events designed to yield price transparency and increase the share of demand response revenues earned. Simply put, when CSPs compete for your business, you win. The market efficiency of the World DR Exchange also provides advantages for CSPs. By attracting more qualified participants into the DR market, we give CSPs greater market reach, reducing acquisition costs and rewarding the most efficient providers. How It Works The World DR Exchange leverages World Energy's extensive expertise in auctioning energy and environmental commodities on our award-winning exchanges, The World Energy Exchange® and The World Green Exchange®. The World DR Exchange builds on this lineage, delivering a state of the art platform and process for auctioning demand response. In a structured event architected by our market directors, CSPs bid against each other in a real-time "forward auction" to win your business. Key Auction Benefits: - Terms standardized to ensure clear comparison: With an online event or auction, the customer fixes the parameters that CSPs must bid on. The terms are the same for all bidders, ensuring an easier and more accurate comparison.
- Auctions designed to foster bidding activity: Our Anglo-Dutch auction design promotes bidding activity and heightens competition. Our last-bid blind feature spurs aggressive "all in" bids.
- Events structured to maximize discovery: We can test several scenarios with different terms, which enables customers to choose the price and parameters that best meet their objectives.
- Auctions sequenced to enhance competition: Auctions can be run in immediate succession, enabling bidders who lost the previous auction to sharpen their pencils and bid more aggressively on the next round.
- Activities documented for complete transparency: All bidding activity is captured, catalogued and time-stamped, providing a thorough audit trail of the transaction.
Benefits to Customers - Simple, efficient and effective process for sourcing DR services that saves time and money
- Real-time price discovery
- Competitive events designed to maximize DR revenues
| Benefits to CSPs - Broader market reach
- Lower cost of customer acquisition
- Simple process resulting in streamlined contracting
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If your facility has the ability to curtail at least 1 MW, or you are a CSP and would like to register for the World DR Exchange as a bidder, complete the form to the right to learn more how the World DR Exchange can work for you. |
