The Intermittent Renewable Management Pilot Phase 2 (IRM2) is a PG&E pilot focused on integrating demand-side resources into the California Independent System Operator (CAISO) market to coordinate with renewable integration. The Phase 1 pilot showed that some of the fundamental technical issues could be addressed with demand response (DR). The Phase 2 pilot focuses on determining how well utilities can cost-effectively provide the flexibility of load needed to support the 33% Renewable Portfolio Standard mandate for 2020. Phase 2 activities include:
- Developing a model to accurately characterize DR and electric vehicle (EV) in terms appropriate to CAISO markets,
- Developing ways to make DR and EV resources more visible in the CAISO market,
- Confirming technology requirements to bring DR and EV resources into the CAISO market (e.g., telemetry), and
- Identifying ways to improve short term forecasts of load (both anticipated consumption and curtailment options).
CAISO currently allows for demand response to provide both non-spinning reserves and spinning-reserves under CAISO’s Proxy Demand Resource (PDR) model, with specified minimum resource sizes and response times supported by adequate telemetry.
The Phase 2 pilot assesses third party interaction with the CAISO market as it enables participants to earn capacity and wholesale payments through direct participation in the CAISO PDR product. While the ultimate goal is to obtain up to 10 MW of flexible load, researchers will be interested in how promptly and accurately third party DR providers can schedule, bid, and dispatch resources into the CAISO market when called upon to do so.