Today, many large C&I energy users are partnering with DR providers to finance and implement equipment upgrades to meet compliance standards for participation in DR, increase their DR earnings potential, and improve their generators’ overall performance and capabilities. The future DR payments provide a reliable source of revenue to finance the upfront hardware and installation costs, thereby eliminating the need for the energy consumer to make a capital investment.
This whitepaper will explain the history behind these kinds of agreements and walk through sample projects to explain how the economics work for all parties involved.
Demand Response Payments Can Finance Equipment Upgrades for Their Backup Generators
Demand response programs pay large energy consumers for agreeing to reduce consumption when the electric grid is under duress.