WHOLESALE POWER MARKETS AND DEMAND RESPONSE: WHAT WILL IT TAKE TO REACH THE PROMISED LAND

Demand response has been identified as a valuable resource for meeting the power system energy needs. The benefits of Demand Response are well understood. However, according to several studies current demand response programs tap less than a quarter of the total market potential for demand response. As a result emphasis has been placed as of late on developing and implementing specific action plans to maximize the value of demand response products and the benefits they provide in market and system operations. In this panel we evaluate and analyze the barriers for maximizing the benefits of Demand Response Products. The barriers we analyze and propose solutions are: A) Market Barriers, B) Regulatory Barriers, C) Customer Participation Barriers, D) Infrastructure and technology Barriers and E) Operational Barriers We further propose methodologies for integrating Demand Response Products into the wholesale energy markets and minimizing the potential of gaming.