New York

Customers Benefit from Demand Response in New York

The Empire State is at the forefront of the clean energy transition—and demand response leads the way in New York.  

Guided by the state’s Reforming the Energy Vision (REV) initiative, the New York Independent System Operator (NYISO) has paved the way for virtual power plants (VPPs) by implementing its DER & Aggregation Participation Model, which was thecountry’s first program to integrate aggregations of distributed energy resources (DERs) into wholesale markets. The state has also launched a major, multi-year effort to shape its Grid of the Future. 

As the first registered aggregator for NYISO’s pioneering DER Model and a contributor to the state’s ongoing efforts to shape its future grid, CPower is helping commercial and industrial (C&I) customers earn revenue and reduce energy costs by participating in demand response in New York.  

C&I energy users benefit from providing grid services that help keep the lights on as intermittent renewable energy increases, electricity demand expands due to the electrification of transportation and homes and extreme weather more frequently disrupts supply and demand.  

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NYISO and NY utilities offer demand response programs for C&I energy users.

NYISO Demand Response Programs

Installed Capacity Special Case Resource (SCR)

The Installed Capacity – Special Case Resource (ICAP-SCR) program is the longest-running demand response program in New York. As a reliability-based demand response program, it pays C&I customers to reduce their load when the electric grid is stressed, such as when demand peaks or unplanned events like extreme weather disrupt supply or demand.

Emergency Demand Response Program (EDRP)

The Emergency Demand Response Program (EDRP) is like the SCR program, except EDRP is voluntary and participants only receive energy payments and not capacity payments.
Like SCR, EDRP is a reliability-based demand response program that pays customers for curbing demand when the grid is stressed.  

Day-Ahead Demand Response Program (DADRP)

The Day-Ahead Demand Response Program (DADRP) is economic based. Customers can offer load reduction into New York’s electricity markets at any time. No reliability need is necessary.

DER & Aggregation Participation Model (DER Model)

NYISO DER & Aggregation Participation Model enables DERs to provide energy, ancillary services and capacity in the NYISO markets. DERs of at least 10 kW aggregated into VPPs of at least 100 kW can simultaneously provide wholesale services to the grid operator and retail services to utilities and load servers. 

DER aggregations can include resources such as small-scale solar arrays, batteries and electric vehicles. Curtailable load, or demand response, is the only type of DER that can be aggregated as a single resource and technology.

New York Utility Demand Response Programs

Commercial System Relief Program (CSRP)

Distribution Load Relief Program (DLRP

In the Commercial System Relief Program (CSRP) and Distribution Load Relief Program (DLRP), New York utilities such as Con Edison (ConEd) and National Grid pay C&I customers to reduce their loads when demand peaks. Customers can enroll in both the DLRP and CSRP programs.

Both the DLRP and CSRP programs provide seasonal payments for load curtailment, but they meet different distribution needs. The DLRP program is more emergency-based, while the CSRP is more about delaying infrastructure investments. 

Term Dynamic Load Management (Term-DLM)

Auto Dynamic Load Management (Auto-DLM)

The Term Dynamic Load Management (Term-DLM) and Auto Dynamic Load Management (Auto-DLM) programs function similarly to CSRP and DLRP. However, utilities procure Term-DLM and Auto-DLM loads via contract with curtailment service providers (CSPs) or individual customers for terms ranging from 3-5 years, as opposed to through an open tariff with annual enrollment.

Multiplying New York Demand Response Benefits

C&I customers can reap more revenue for using the same curtailment practices by simultaneously participating in or “stacking” — programs. Customers can “stack” the following programs: SCR, CSRP, and DLRP. 

NYISO Program Overview

NY Utility Programs

Customers interested in reducing energy costs and earning demand response revenue in New York by helping to improve grid flexibility can contact CPower to learn more: