Measurement and Verification

Cx Associates Verifies the Reliability of Demand Side Resources for the Forward Capacity Market

Background

In 2007, ISO-New England (ISO-NE), in partnership with the six New England states and industry stakeholders, developed the nation's first Forward Capacity Market (FCM). The FCM is a reverse auction that allows ISO-NE to purchase the power resources needed to satisfy future regional demands. What makes the FCM unique is the inclusion of energy efficiency projects in the region's projected future energy capacity. In effect, the FCM creates a marketplace that does not discriminate between saving energy and producing energy, since both increase the availability of electricity during peak usage hours. This provision allows entities such as Efficiency Vermont (EVT), the nation's only energy efficiency utility, to compete directly with energy generators such as Hydro-Quebec and Vermont Yankee for capacity production.

Currently, the New England region has over 32 gigawatts of total electricity supply. 1500 megawatts, or 4.7% of that supply comes from efficiency-type capacity.

Cx Associates' role in verifying the efficiency power plant

The reliability of the electric grid is a critical factor in resource planning and acquisition. Traditional power generators are relatively easy to meter and dispatch. The demand resource associated with thousands of energy efficiency improvements is much more challenging to meter. In order for demand resources to be deemed reliable, a rigorous measurement and verification protocol must be instituted. Cx Associates has played a key role in defining and implementing Vermont's protocols for custom commercial, industrial and large multi-family Energy Efficiency projects.

Cx Associates worked with the Vermont FCM participants and regulators to develop an implementation plan based on Vermont's approved FCM M&V Plan. Implementation planning included identifying additional tracking and reporting required by Efficiency Vermont and Burlington Electric Department, developing and managing a pilot M&V program in the summer of 2008, analysis of the schedule conflicts between the existing annual savings verification effort and the new FCM M&V effort, and the identification of additional resource needs to increase the reliability of demand claims and support the FCM's more rigorous M&V process.

Based on the 2008 pilot project, the Vermont Department of Public Service (DPS) issued an RFP for the independent measurement and verification of Vermont's FCM claims. Cx Associates was a key member of the successful team and performs on site metering, utility bill analysis and engineering analysis based on meter data to verify the peak demand reductions claimed by EVT and BED. Peak period demand reduction verification differs from energy savings verification in that it focuses solely on system performance and savings during specific hours in the summer and winter. This often requires installation of meters during the performance hours. Cx Associates has developed expertise in demand reduction validation and has written a Custom Measure Technical Reference Manual for the Ohio Public Utility Commission that will ensure the validity of Utility and Customer energy and peak period demand reduction claims consistent with the requirements of both ISO New England's FCM and the Reliability Pricing Model (the equivalent of the FCM for PJM Interconnections – the regional transmission organization for several southern, mid-Atlantic and Ohio Valley states).

Works Cited:

Jenkins, C., & Neme, C., & Enterline, S. (ACEEE 2009). Energy Efficiency as a Resource in the ISO New England Forward Capacity Market. Retrieved from http://www.veic.org/Libraries/Resource_Library_Documents/ISO_NewENgland_ECEEE_Jenkins.sflb.ashx

Parlin, K., & Poore, W. & Chiodo, J. & Bartsch. A. (IEPEC 2009) Demand Reduction in the Forward Capacity Market: Verifying the Efficiency Power Plant.