2016.06.09 Gaming in Demand Response

Here is something about demand response you don’t learn from the average Joe: DR is good, only if all participants behaves.

Significant amount of effort will be required in monitoring and analysis in order to make sure that the participating load is able to follow the load shedding instruction. Any major deviation, from a single load or from the collective zonal behavior, should be captured and addressed ASAP. However, even a seemingly perfectly conducted DR event may be questionable inside – we are talking about Gaming here.

The word ‘Gaming’ in DR refers to the action of artificially increase the load right before the start of event in order to create more shed-able capacity at much lower bidding cost (of course, you don’t need that capacity in the first place). It is not allowed, even illegal, because potential payment and thus overall cost of energy usage will be inflated unnecessarily. In fact, one DR operator in the US, Enerwise, was fined for the gaming action of one of their registered participants in 2013.

The regulatory body uses 2 methods to discourage gaming:

  • increasing the measurement frequency certain period before DR event;
  • introducing price floor, either fixed or dynamic, on DR bidding.

Are you aware any other means to effectively prevent DR gaming? I would love to hear from you.

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