Scenarios for Consuming Standardized Automated Demand Response Signals

Automated Demand Response (DR) programs require that Utility/ISO's deliver DR signals to participants via a machine to machine communications channel. Typically these DR signals constitute business logic information (e.g. prices and reliability/shed levels) as opposed to commands to control specific loads in the facility. At some point in the chain from the Utility/ISO to the loads in a facility, the business level information sent by the Utility/ISO must be processed and used to execute a DR strategy for the facility. This paper explores the various scenarios and types of participants that may utilize DR signals from the Utility/ISO. Specifically it explores scenarios ranging from single end user facility, to third party facility managers and DR Aggregators. In each of these scenarios it is pointed out where the DR signal sent from the Utility/ISO is processed and turned into the specific load control commands that are part of a DR strategy for a facility. The information in these signals is discussed. In some cases the DR strategy will be completely embedded in the facility while in others it may be centralized at a third party (e.g. Aggregator) and part of an aggregated set of facilities. This paper also discusses the pros and cons of the various scenarios and discusses how the Utility/ISO can use an open standardized method (e.g. Open Automated Demand Response Communication Standards) for delivering DR signals that will promote interoperability and insure that the widest range of end user facilities can participate in DR programs regardless of which scenario they belong to.