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Demand response pilot event conducted August 2,2011 : summary report

Evans, Christopher A.

Energy management in a commercial facility can be segregated into two areas: energy efficiency and demand response (DR). Energy efficiency focuses on steady-state load minimization. Demand response reduces load for event driven periods during the peak load. Demand-response-driven changes in electricity use are designed to be short-term in nature, centered on critical hours during the day when demand is high or when the electricity supplier's reserve margins are low. Due to the recent Federal Energy Regulatory Commission (FERC) Order 745, Demand Response Compensation in Organized Wholesale Energy Markets the potential annual compensation to Sandia National Laboratories (SNL) from performing DR ranges from $300K to $2,400K. While the current energy supply contract does not offer any compensation for participating in DR, there is benefit in understanding the issues and potential value in performing a DR event. This Report will be helpful in upcoming energy supply contract negotiations to quantify the energy savings and power reduction potential from DR at SNL. On August 25, 2011 the Facilities Management and Operations Center (FMOC) performed the first DR pilot event at SNL/NM. This report describes the details and results of this DR event.