Incentive- based DR Sample Clauses

Incentive- based DR. Incentive based DR programs encourage customer participation by providing payments to reduce/shift their demand at time of need, triggered by grid reliability issues such as grid congestions, voltage limit violations, peak-load reduction etc. There are various incentive based DR techniques that are in implementation described below9. ○ Direct Load Control (DLC) DR, where the customers sign up for an incentive based agreement in which utilities can remotely shutdown customer appliances during grid emergencies or high demand periods. ○ Interruptible/curtailable DR, where customers are given prior incentives to curtail/shift their load consumption at pre-defined times of a day i.e., in response to the supply conditions. If failing to do so the customers will be penalized. ○ Demand-bidding DR unlike interruptible DR, customers directly bid their specific load reduction in the wholesale electricity market. If their bid gets selected the customer should curtail the committed demand in order to avoid any penalty. ○ Emergency DR, where customers are given incentives to reduce their demand during grid emergency conditions such as network voltage instability problems, operating reserve short falls etc. ○ Capacity margin DR, where a day-ahead notice is given to interested customer to reduce pre-specified load reduction during any contingency case. Customers faces penalty if they fail to reduce the committed load. ○ Ancillary service market DR, where customers bid their load curtailment as operating reserve in spot market. Customers are paid spot market price for standby and spot market energy price for load curtailment call. 8 "Smart Grid Constraint Violation Management for Balancing ... - XXXX.xxx." xxxxx://xxx.xxxx.xxx/pages/servlets/purl/1375241. Accessed 13 Feb. 2018. 9 "Benefits of Demand Response in Electricity Markets - Energy " xxxxx://xxxx.xxx.xxx/sites/all/files/publications/report-lbnl-1252d.pdf. Accessed 13 Feb. 2018.
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