Keywords

Abstract

This paper focuses on the role that demand-side resources and demand response programs can play in meeting future capacity and reserve needs in electricity markets. Of particular interest is how demand-side resources can be used as capacity resources in deregulated markets (the so-called installed capacity or ICAP markets). The paper also examines the economic, market, and regulatory issues affecting demand response, and how power markets, ISOs, and regulators are addressing these issues. Ultimately, the paper focuses on the critical interface between end-use customers and wholesale power markets, and the need to view and value demand response as insurance or as a call option to hedge against future price spikes or system emergencies.

Paper

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Panels of the 2002 ACEEE Summer Study on Energy Efficiency in Buildings

Panel 1. Residential Buildings: Technologies, Design, Performance Analysis, and Building Industry Trends

Panel 2. Residential Buildings: Program Design and Implementation

Panel 3. Commercial Buildings: Technologies, Design, Performance Analysis, and Building Industry Trends

Panel 4. Commercial Buildings: Program Design and Implementation

Panel 5. Utility Issues

Panel 6. Market Transformation

Panel 7. Information and Electronic Technologies: Promises and Pitfalls

Panel 8. Human and Social Dimensions of Energy Use: Understanding Markets and Demand

Panel 9. Energy and Environmental Policy

Panel 10. Program Measurement and Evaluation