Supply and Demand-side Energy Strategies
Organizations that earn revenue through demand response (DR) or save money through demand management use their operational flexibility as a competitive advantage.
Maximizing the value of that operational flexibility, however, takes specialized expertise.
There is no cookie-cutter approach to demand management
A successful demand management strategy lowers energy expenses and generates DR revenues with minimal disruption to your operations. The most effective strategies align three different tactics by:
- Shaving annual peak demand for capacity-related savings on supply invoices
- Curbing monthly transmission and distribution (T&D) charges on utility invoices
- Maximizing DR revenue
Having an advisor that knows your business, load profile, utility tariffs, and DR program rules is the key to minimize energy expenses while maximizing DR payments.
Different strategies require different competencies
The number of energy brokers and independent suppliers offering DR services has grown exponentially over the past few years. Typically, however, energy brokers and suppliers outsource their DR program management because it is not their core competency.
Similarly, many brokers and suppliers can help you pass-through the capacity charges in your energy contracts, but they don’t have the expertise or the technology you need to take full advantage of your energy reduction opportunities.
The EnerNOC difference
With more than 5,000 customers, EnerNOC knows your market better than the brokers and suppliers that bundle supply contracts and DR services. DR is one of our core competencies, and we work closely with you to customize a DR participation plan that optimizes your program and capacity enrollment to maximize your revenue potential. Just as important, our industry leading technology and team of experts work with you every step of the way to ensure you are prepared to perform if and when dispatched, so you earn the full value of your enrollment.
On the supply-side, our procurement experts integrate demand flexibility into your energy sourcing strategy. We make sure you have the plans, the products, and the protocols to maximize cost reductions and revenue streams while managing your exposure to energy price risks.
Wholesale Bakery: a Demand Management Case Study
The industrial bakery began its relationship with EnerNOC in 2008. Together, the bakery and EnerNOC developed a minimally disruptive energy reduction plan that raised air conditioning temperatures, curtailed lighting in freezers and unoccupied areas, and shut down non-essential loads.
Over the years, EnerNOC has continued to monitor the market to identify DR opportunities and improve demand management strategies. In 2013, the bakery engaged EnerNOC for energy procurement advisory services. Having already developed energy reduction strategies for demand response, EnerNOC and the bakery built a procurement strategy that reduced and passed through the capacity charges embedded in their energy supply contracts—often the second largest energy cost component.
Using EnerNOC’s System Peak Predictor, the bakery supplemented DR participation with periodic peak shaving efforts. For the past two years, the bakery has halved its demand during system peaks and avoided nearly $200,000 in capacity charges on its supply bills.
And our work together continues. In 2016, EnerNOC advisors helped the bakery develop a demand response plan that enrolled twice the capacity it had originally enrolled in 2008, garnering up to $20,000 in additional DR payments each year.