How Demand Response Can Turn Energy Reductions Into Incentive Earnings

How Demand Response Can Turn Energy Reductions Into Incentive Earnings

Demand response programs represent an opportunity for businesses to generate income while delivering on commitments to grid reliability and sustainability.

Remain Competitive Through DR

Kimberly-Clark and its global brands are an indispensable part of life for people in more than 175 countries. The company’s mill in Huntsville, Ontario, is a 24/7 operation that manufactures large rolls of tissue and has several conversion operations that fold facial tissue, wind bath tissue, and package the products. 

The Huntsville mill’s management team initially explored participating in Ontario’s DR program by reducing about 500 kW in electric load. After the Enel X team visited the facility, they found a number of measures that could take a total of 5.3 MW off the grid – more than 10 times the original estimate without disrupting the mill’s regular operational or production schedules. Because the Huntsville mill operates with in-process inventory in hand, the packaging operations can continue uninterrupted, even while the tissue machine is down.

The Huntsville team utilizes this downtime during a dispatch to perform standard required maintenance on the tissue machine. By performing regular maintenance during dispatch periods, the mill not only prolongs the lifespan of its expensive equipment, but also earns payments at the same time.

From generating regular payments that can be fed back into the mill’s infrastructure to organizing the workflow of maintenance activities, DR helps the Kimberly-Clark facility remain competitive in energy efficiency and cost-savings.

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When I look at the numbers, it’s pretty easy. The payments well outstrip the cost of our downtime.

Electrical Engineer-Tissue Manufacturing

Kimberly-Clark

Earn Money by Stacking DR Programs

Temple University has partnered with Enel X to take advantage of all available DR programs for its Philadelphia campus. This robust strategy enables Temple University to offset its energy costs and improve the resiliency of its campus while contributing to the local community.

The university’s most lucrative and successful DR program to date has been PJM’s Synchronized Reserve Market (SRM) program, which requires fast-response participation during brief power system disruptions, such as transmission line or power plant outages. These pre-planned reductions last only 10 minutes and have resulted in over $2.3M in earnings for Temple University since 2007, an average of $226K annually.

Temple University also participates in PJM’s Emergency Load Response Program, PJM’s Economic Demand Response, and Pennsylvania Act 129 Demand Response, which has generated nearly $4.1M in gross revenue.

Additionally, the university has also enlisted Enel X to develop a strategy for procuring electricity and natural gas supply contracts, which has generated about $1.5M in cost savings, while also using its demand response energy reduction plan to avoid more than $9M in costs from demand-related charges on the electric bill.

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This program has not only resulted in increased income potential for the university, but has allowed me the freedom to deliver on Temple’s commitment to conservation, sustainability, and efficiency.

Kurt Bresser

Director of Utilities and Energy Management, Temple University

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