Friday, April 29, 2011

Demand Response:The Next Big Wave in the Energy Sector?

Demand Response (DR) seems to be a very controversial topic in energy circles, largely due to the fact that it is an emerging market in the energy sector. The purpose of DR is to reduce energy load in facilities during specified times, usually when there is a high demand for energy. DR helps to ensure that the rolling blackouts that California was famous for in the late 80's and 90's are minimized. It appears that DR, also known as Management of Demand, is starting to pick up steam as forward thinking countries such as China and England are soliciting the assistance of American Energy giants (Honeywell and Johnson Controls) to implement DR programs. Large DR firm EnerNoc has been in a wrestling match with east coast grid juggernaut PJM (one of the biggest demand response customers in the nation) over the price DR participants should receive for giving up their right to "revenue gererating" energy. There are still a lot of kinks to work out in the DR initiative but there are many credible proponents that are positioning themselves to reap the benefits should Demand Response catch on. FCI has recently partnered with Perry Software Solutions and this union will expand our capacities to serve our client base interested in pursuing Demand Response programs.

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