Webinar: Financing Backup Generator Upgrades with Demand Response Earnings
Large energy users with high-capacity backup generators have long been a good fit for demand response programs.
To help maintain grid stability, demand response programs offer payments to organizations that can reduce energy consumption when the grid is under duress, creating incentive to minimize their reliance on the grid during these events.
This incentive can be higher for those with high-capacity backup generators, such as hospitals or large industrial facilities. These organizations can earn higher payments by powering their energy-intensive equipment with their backup generators during demand response events.
In 2016, however, the US Environmental Protection Agency (EPA) implemented new regulations that require backup generators to meet more strict emissions standards in order to participate in demand response. This made it complex for demand response participants to understand whether their backup generator equipment could meet these standards, and required those with generators that did not meet these standards to find the capital, time, and resources to upgrade their equipment to continue participating. As a result, many of these organizations lost access to these payments, while demand response programs lost access to the valuable capacity they provided.
This environment has created an opportunity for organizations with backup generators. To help more organizations participate, demand response providers are financing and installing the equipment needed to bring backup generators into compliance. As a result, large energy users receive a no-cost upgrade to their generator assets and gain access to regular demand response payments.
- Why demand response providers are financing and implementing backup generator upgrades
- How participating in demand response helps improve backup generator operations
- Two case studies demonstrating the impact of generator upgrades for demand response participants