Understanding Curtailment Service Providers

Alternatives are good, and for energy users, that concept has taken hold in recent times with emerging energy options (wind, solar, etc.). It is just as significant that emerging technologies are developing new ways to use less energy like curtailment. 

What is Curtailment?

Curtailment is a decrease in the energy production of a generator from what it could produce, given available sources. Usually, this is on an involuntary basis. Electricity generation curtailment has regularly been happening since the start of the electric power industry.

Some of the reasons that curtailment is implemented include transmission constraints, like congestion and system balancing. As well there are other difficulties related to oversupply situations and ramp events.

Embracing energy curtailment means being more proactive in your method of handling energy to maximizing savings. Like DR or ABDE, these solutions can have a meaningful and positive effect throughout energy "events" like severe weather. These things impact the energy grid or other times where the electricity network may be experiencing challenges. They can also bring added efficiency, control, and resilience to a company's overall energy approach.

In this way, an energy curtailment mindset and the solution it leads to can deliver a significant long-term impact on energy management programs and planning.

What is Demand Response (DR)?

For a long time, the first option to do this was through a solution known as demand response (DR). Both tactical and established, it enabled businesses to join a plan where they would agree to reduce energy usage during times of substantial stress on the local grid. As a reciprocation, they earned financial considerations for their efforts. 

DR became a solution with mutual benefits for everyone. It was vital in helping to reduce electricity usage during peak usage periods. For grid supervisors and utilities, DR programs reduced pressure in high-peak times. In the longer term, they cut the need for the development of new generation sources.

For many companies, DR programs emerged to become customized and consolidated without interruptions to their daily work. Businesses could use the addition of behind-the-meter assets to enhance their energy use. This method, asset-backed distributed energy (ABDE), reduces grid pressure without interrupting business services. 

The driving force behind both these trends was increased knowledge and data regarding energy use.

Leveraging Data

The next step was simple: leverage the increasing amount of data to take energy reduction even higher. With the addition of new tools, technologies, and an experienced resource, like the team at Lone Star Demand Response, the outcome is a bigger idea known as energy curtailment. It builds on the decrease idea by combining broader and more wide-ranging solutions.

Demand Response and Energy Curtailment Applied

If your firm is interested in a tactical DR program, asset-backed distributed energy, or energy curtailment enterprise, here are some essential factors to take into consideration upfront:

  • Information and data are critical for a successful program. Tracking electricity in real-time is vital in improving your energy administration practices. Smart meters and other related tools, from your in-house specialists or external advisors, play a pivotal role.
  • Develop a strategy based on information and usage patterns that include your company's energy demands and forms your prescribed strategy for reducing energy usage.
  • Create a point of contact at your business and a clear line of communication in managing transitions and executing the solution.
  • Measure and analyze the performance of your plan and make adjustments as needed to maximize efforts. This analysis directly ties in to cost savings, incentives, and the overall impact you can achieve.

What is Energy Management?

Energy management is a phrase that has several meanings. Let's look at the one that relates to saving energy in businesses, public-sector/government organizations, and homes:

When it comes to energy saving, monitoring, regulating, and saving energy in a building or organization is called energy management. Generally, this involves the following:

  • Metering your energy usage and getting the data.
  • Find ways to save power and calculate how much energy each method could ultimately save. 
  • Take action to target the opportunities to save energy. Start with the best opportunities first.
  • Track your progress by reviewing your meter data. Keep a record to see how well your energy-saving efforts have been useful.

(Rinse and repeat)

Why Does Energy Management Matter?

Energy management is how to control and reduce the building's energy consumption. Energy management enables:

  • Cost Savings – energy represents 25% of all operating expenses in an office building.
  • The reduction of carbon emissions will enable attaining internal sustainability goals and regulatory obligations.
  • Reduce risk – the more energy you use, the higher the chance is that energy price hikes or supply shortages could severely affect your profitability. Lower this risk by reducing your demand for energy and, thereby, controlling it to make it more predictable.

As energy management has evolved, the role of an organization has changed over time:

Demand Response and Energy Curtailment Solutions

In essence, demand response solutions, and energy curtailment need the investment of time and long term planning. The potential for significant cost savings, greater control, increased productivity, and added flexibility is great. Partnering with an experienced organization, like Lone Star Demand Response, can turn a general idea into a well-tailored strategy. 

Understanding the challenges and solutions. Lone Star Demand Response, offers professional, mission-critical success -based fulfillment of all ERCOT Demand Response services. Lone Star DR documents, trains participants, execute success strategies and executes on every part of the ERCOT Demand Response equation for its esteemed customers.

Seeking a Partner for Demand Response Services?

Lone Star Demand Response is a great choice. Despite the rigors of integration and implementation, it continues to put demand response into its operations and systems. Whether you're looking for a Demand Response or Curtailment partner, we are here to help. At Lone Star great work is our focus for all our ERCOT customers.

To see how a holistic approach to energy curtailment can be tailored to your current and long-term energy needs, contact us.


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