1. Capacity Programs

Energy users are paid for the ability to reduce their demand on the grid upon request. There are 2 types of payments:

• Capacity or Availability payments: based on a predetermined amount of energy reduction
• Energy or Event payments: based on demand reduction during system emergencies

2. Ancillary Services Programs

They require faster, near real-time response to help prevent sudden grid reliability issues. They include 2 types of programs:

• Reserve Programs: participants respond in real-time to prevent a grid imbalance when additional supply is needed
• Frequency response programs: participants are equipped with specific hardware that can help resolve grid frequency issues automatically

3. Energy Market Programs

Customers are paid to reduce their electricity demand on the grid in response to high electricity prices.

Unlike other forms of demand response, the customer can control when they choose to make themselves available for dispatch. In addition

• Participants are paid at the same rate that traditional generators receive for providing additional supply
• Participants can save on their electricity bills by using less electricity when prices are at their highest