Demand Response
How demand response programs work, the difference between market and utility programs, and how baselines and performance are measured.
What is Demand Response?
Demand Response (DR) is the practice of temporarily reducing your facility's electricity consumption during periods of high grid stress, in response to a signal from a grid operator or utility. Enrolled participants receive financial compensation for their load reductions.
When the grid operator calls an event, enrolled facilities are expected to curtail load during the activation window. Your demand reduction — the difference between your expected and actual demand — determines your earnings.
Program Types
Market Programs
Operated by grid operators with formal capacity commitments. Participants commit capacity ahead of time and are dispatched during activation and test events. Performance is measured against an adjusted baseline.
| Program | Operator | Region | Event Types |
|---|---|---|---|
| Capacity Auction | IESO | Ontario, Canada | Activation, Test |
| Capacity Auction | PJM | Eastern US | Activation, Test |
Utility Programs
Initiated directly by utilities with defined activation windows. Performance is measured as average demand reduction across the full event window.
| Program | Utility | Region |
|---|---|---|
| Demand Response | Hydro Quebec | Quebec, Canada |
| Demand Response | Nova Scotia Power | Nova Scotia, Canada |
| Demand Response | NB Power | New Brunswick, Canada |
| Demand Response | Maritime Electric | Prince Edward Island, Canada |
Licensing: Demand Response APIs are licensed per market or per utility. Contactyour Edgecom account manager to enable access to the programs relevant to your portfolio.
Baselines & Performance
A baseline is the expected demand your facility would have consumed if no DR event occurred. DRMS provides three distinct curves for every event:
| Curve | Description |
|---|---|
| Demand Curve | Your real metered consumption during the event window |
| Baseline | Expected consumption based on historical patterns, without curtailment |
| Adjusted Baseline | Baseline with market-specific correction factors applied (market programs only) |
How earnings are calculated: Demand reduction = Adjusted Baseline −Actual Demand during the event window. This reduction, multiplied by your contracted capacity price, determines the revenue earned.
Event Types
| Type | Description |
|---|---|
| Activation | A real curtailment call from the grid operator. Your performance directly determines revenue earned. |
| Test | A scheduled verification event. Required to remain in good standing in the program. Performance is still measured and recorded. |
Updated 29 days ago