Q&A with Mark Foreman: What’s next for demand response and distributed energy resources?
We sat down with CLEAResult’s Director of Distributed Energy Resources, Mark Foreman, to better understand how demand response and distributed energy resource management systems are evolving to better serve utilities’ common goals. Our insightful conversation touched upon the value that implementers like CLEAResult bring to the table:
Demand response programs are more widespread than ever before, but what should a utility keep in mind as it considers expanding its demand response programs and operations?
Often, a utility starting on its demand response journey will begin with a bring-your-own-thermostat (BYOT) program – it’s a natural starting point and generally straightforward to stand up a smart thermostat program since the process to do so is well-established. However, it’s just as important to consider the steps beyond BYOT. How does the utility plan to expand past this initial offering and use the capacity?
From our 20 years of experience in this space, we’ve found that It’s worth bringing on an implementer to help utilities answer that question and execute successful programs that bring different functions of a utility together to realize all the synergistic benefits provided by a demand response program.
An implementer brings value - in your experience, how does this translate into growth for the utility?
We’ve found that utilities that partner with an implementer are more successful and have more satisfied customers. This is for several reasons.
First and foremost, an implementer gives a utility perspective that can often unlock new opportunities not previously considered. They do this by providing the utility with an overarching view of the program, with the implementer keeping the utility informed on technology and offerings best suited for their program needs. Second, an implementer is technology and solution agnostic – we are going to look for the best solution for a utility’s needs, not just the technology we have available. Finally, an implementer has a view into a utility’s energy efficiency and customer outreach programs and can look to bring them to customers all in one offering, saving a utility money and providing a better end customer experience.
The utility also benefits from the implementer’s depth of experience.
Exactly. The implementer is bringing their experience to the table and is well-accustomed to contracting with utilities in all areas, including data privacy which we have seen, can be a challenge. CLEAResult, as the largest implementer in the US and Canada, knows what a utility needs to be successful and will be ready to hit the ground running.
What about utilities that are managing an energy efficiency program and are thinking about tying it together with a demand response program - would an implementer be able to make that a reality?
Absolutely! An implementer is in a unique position to tie demand response participation to energy efficiency programs. What we’ve seen in the industry is that utilities are taking the opportunity to extract more value from two previously separate programs by unifying them. This has been a challenge in the past for utilities to execute, and more recently it’s been discussed but not implemented, and as of late we’re now seeing utilities look for energy efficiency and demand response delivery in the same offering.
Customers who are receiving a smart thermostat can and should be encouraged to participate in demand response, and device sales and installations for demand response can also provide documentable energy savings benefits. An implementer can help a utility deliver that combined demand response/energy efficiency solution by tying together the programs, looking at which customers of theirs are already participating in energy efficiency programs, and looping in those customers and their devices to also be part of demand response programs.
What if a utility already has a program but is looking at what's next? How would CLEAResult guide them?
It’s great that the utility is at that point of looking to grow and that’s precisely where an implementer can fill in the gaps. Let’s say that a utility is working with a distributed energy resource management systems provider, and the demand response program is up and running with the distributed energy resource management systems software providing a base of infrastructure.
The next step is often bringing in a marketplace provider to provide pre-enrolled devices ready to participate in demand response. Sometimes distributed energy resource management systems providers have that marketplace already and if they don’t, we can bring that marketplace to them and can integrate the two together to provide a seamless offering.
A seasoned implementer with existing relationships with major fulfillment providers and a solid technology and integration base can simplify the expansion process for the utility. The next stage after the marketplace partner is often a direct installation program, where the focus is on the public or perhaps an income-qualified segment.
How else can an implementer help the utility grow their demand response programs?
Utilities have a variety of goals they want to achieve, whether it’s absolute capacity, increased customer engagement, and/or customer satisfaction, and oftentimes it can be difficult to know where and how to start. That’s where an implementer can guide, for example, which additional smart devices are the most popular in a utility’s region and which devices are enrolled in the utility’s energy efficiency programs.
An implementer is going to be in a strong position to help a utility figure out what the next devices –home batteries for example – are that make sense to a utility to meet its goals.
What would you recommend for utilities looking for additional uses for their existing demand response programs?
Increasingly, we’re hearing utilities mention using demand response for specific uses such as needing to reduce peak load on certain feeder or substations. Demand response is a great asset to bring in to reduce infrastructure expenses and reduce operational costs.
We’re also seeing utilities using demand response assets outside of the typical summer months. The traditional June through September programs will continue, but we’re hearing from utilities that want to use their demand response programs into the winter or year-round. Additional uses for demand response programs range from grid mitigation measures such as curtailing load for substation relief, renewable load following, and managed electric vehicle (EV) charging. We can help a utility transition their program offering, infrastructure, and technology to expand their demand response offering into additional seasons and uses.
Can you recap success from the partnership with CLEAResult and Hydro One?
Hydro One, an Ontario-based utility provider, has specific demand response program goals around identifying the value of the capacity from its demand response portfolio. They weren’t just looking at how many devices, in their case thermostats, we could bring into the program, but they also wanted to figure out how to get the most value from their demand response portfolio.
Hydro One wanted to look at different levels of curtailment, different levels of advanced notice, and different levels of preheating and cooling. We worked with them to figure out an operating scheme to make that happen. Hydro One was interested in adding additional devices. Since we started the program, we’ve added BYOT, direct and virtual install thermostats through our marketplace. We’ve also added line voltage thermostats, as well as EVs and vehicle telematics. We are working on batteries now and anticipate adding water heater controllers later this year.
This partnership with Hydro One is a true example of how we came on as an implementer and were able to work with a distributed energy resource management systems provider to bring on all these devices, make sure that they were configured and properly managed so that the utility could meet its goals.
Any closing thoughts on bringing on an implementer?
If you’re thinking about growing your program, or if you have an idea of how you would like to see that growth play out, CLEAResult is available to help you discover the next steps. An implementer is well-equipped to help you seize opportunities to increase your customer engagement levels and get you on track to better engage your operational teams.
For more information, please visit our Distributed Energy Resource Management portfolio page.
Mark brings more than 25 years of experience building customer-focused and scalable organizations that deliver actionable outcomes in the CleanTech space. He has helped CLEAResult grow its industry-leading DR portfolio and introduced products, services, and technology solutions that deliver benefits for both customers and their utilities.