Make Money by Going Green! DR Market
Environment is becoming the center of attention all across the world and we
can see it from several global movements such as The Paris Agreement, an
agreement within the United Nations Framework Convention on Climate Change. The
world is seeking to minimize CO2 emissions and finding ways to improve energy
generation efficiency.
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| The Paris Agreement (source: Money Today) |
South Korea, aligning with the movement, has been developing a DR (Demand
Response) market since November 2014 where people and/or utilities can get
incentives as they curtail electricity consumption.
Electricity consumers reduce electricity consumption, i.e., DR resources during
the energy peak period and DR business providers sell the curtailed resources
to the market and then share the revenue with consumers who reduced electricity
consumption. This is how the DR market works.
There’re two DR programs being operated by this market: Reliability-based
DR and Economic-based DR. The former is for peak demand curtailment and the
latter is for power supply price reduction. The overall DR market is expected
to grow up to approx. US$130M by the end of 2016.
The
interested parties in Korea’s DR market are KEPCO (Korea Electric Power
Corporation), KPX (Korea Power Exchange) and utilities. A load aggregator, as a
bridge between the parties to manage DR business has become a core part that
plays principal roles in the market.
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| Korea's DR Business Model |
The load aggregator is mainly responsible for real-time monitoring,
management of utilities’ electricity consumption curtailment and reporting of
the result to KPX while the electric supply is unstable.
The load aggregators also shall have to keep finding out potential DR
resources to encourage them to participate in DR programs, which directly leads
to reliability and vitalization of DR market. In order for load aggregators to
become competent performers between the parties, they would need an automated
system enabling them to monitor electricity consumption in real time, manage
participants, conduct billing and interact with a Power Exchange system according
to the predefined protocol (OpenADR 2.0b).
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| OpenADR Alliance Website |
OpenADR (Open Automated Demand Response) is an open and standardized way
for electricity providers and system operators to communicate DR signals with
each other and with their customers using a common language over any existing
IP-based communications network, such as the Internet. As the most
comprehensive standard for Automated Demand Response, OpenADR has achieved
widespread support throughout the industry.
Proven DR system, I-ON LAMS
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| All-in-One DR system, LAMS |
I-ON Communications offers both on-premise and service type of management
system for load aggregators called LAMS (Load Aggregators’ Management System).
All the functions required to manage DR business are in a single, unified
system to help a small number of people handle the overall management of a DR
business.
LAMS automates repetitive, complicated measurement & management and
allows load aggregators to focus much more on customer retention and
acquisition. The load aggregators are then able to attract quality DR resources
and better manage them.
As of January 2017, Korea’s DR resources are approx. 3,885MW in total and 35%
out of it is being managed by I-ON LAMS. Given that a LNG peak generator covers
500MW, DR resources managed by LAMS can save about 3 peak generators, which is
quite encouraging.
I-ON is to launch a new service model that fits to small and medium-sized DR
market (2MW~50MW of DR resources while current standard DR market requires
10MW~500MW) in the hope that more and more DR business providers can leverage
LAMS at an affordable price.
Like any other business, DR business providers struggle to minimize
up-front payment when it comes to a new system adoption. In an effort to lighten
the burden on them, LAMS offers a flexible pricing plan so that each business
provider can pay as per the DR resources amount it has.
Further, with the support of cloud-based responsive UI/UX LAMS frees users
up to access the system from any device, anywhere at any time.
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| Modules offered by LAMS |
As a Korea’s no.1 DRMS(Demand Response Management System) provider, I-ON
has successfully completed PoC in Thailand DR market and been conducting
collaborative projects with partners in UK and more.
Based on the proven track records for local & overseas DRMS, I-ON is to
provide an “Integrated DR & DER Management System” that even manages small-scale
distributed energy resources like solar energy, ESS, EV and etc. I-ON is also
accelerating development of a de facto standard system that supports various
protocols such as OpenADR, SEP2.0, OCPP to make sure the system better interacts
with the other systems.
Any questions and/or feedback? Please contact us at intlbiz@i-on.net.
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