Demand Response Sets New Record in PJM Interconnection
Consumers' reductions in the use of electricity, known as demand response, set a record this week in PJM Interconnection during a power supply emergency.
"This was the largest amount of demand response we've ever had on one day, and it's an encouraging milestone," said Andrew L. Ott, PJM's vice president - Markets. "Participating consumers responded to price signals in the wholesale electricity market and to system needs. We continue working with state regulators and stakeholders to make demand response a larger resource to draw on. We're working with stakeholders to advance recommendations from our May symposium on demand response."
In PJM's wholesale electricity markets, consumers can be paid the same amount for reducing demand for electricity as generators are paid for supplying electricity.
On Wednesday, consumers participated in demand response in several ways: through the Day-Ahead Market, PJM real-time dispatch, self-scheduled, PJM's call for emergency load response and PJM members' "interruptible" rates.
Demand response can help maintain reliability by reducing the demands on the power supply system. It also can reduce wholesale prices for electricity by eliminating the need to run more expensive generating units.
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