Deck:
Regional demand resource banks, based on the Federal Reserve Bank system, would make for greater use of customer demand response mechanisms while ensuring long-term resource adequacy.
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Regional demand resource banks, based on the Federal Reserve Bank system, would make for greater use of customer demand response mechanisms while ensuring long-term resource adequacy.
Demand response is the only resource available to electricity markets that is not plagued by long lead times, severe regulatory scrutiny, and environmental concerns.
In a perfect world, retail prices would moderate electricity markets, and a fair amount of demand response would happen naturally. However, as the 2001 California power crisis demonstrated, regulatory and political bodies are sometimes unwilling to allow price to do its job. This unwillingness has two outcomes:
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