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Experts from Energy and Building Community Team to Enhance Demand Response LEED Pilot Credit and Roll Out Utility Market Pilots

Skipping Stone, Schneider Electric and Lawrence Berkeley National Laboratory recently announced the formation of a committee tasked with enhancing the current Demand Response LEED Pilot Credit. The team, led by Skipping Stone and composed of Schneider Electric and the Demand Response Research Center (DRRC) at Lawrence Berkeley National Laboratory, will collaborate on enhancing the credit to enable commercial building owners and LEED green building projects to earn credits in LEED for enrolling in utility or wholesale market demand response programs.

The enhanced program will provide LEED projects with demand response definitions, participation options for buildings, and implementation and documentation requirement guidelines. The team will also develop a robust market research agenda to study participation across markets, adoption criteria, load reduction scenarios, utility service territory benchmarking and implementation technology drivers. To assist buildings in identifying existing demand response programs, Skipping Stone will provide U.S. Green Building Council (USGBC) members with a searchable national database of programs.

“Demand response is unique in comparison to other LEED credits as it requires coordination with the utility and wholesale markets,” said Brendan Owens, Vice President, LEED Technical Development, USGBC. “By bringing this team of experts from the energy and building communities together, USGBC will benefit from the combined expertise.”

“Demand response is a new path for USGBC and critical to the building communities’ involvement in the smart grid,” indicated Mark MacCracken, USGBC Chairman.

“One of our key strategic initiatives focuses on taking buildings into the energy markets through demand response initiatives,” said Jim Anderson, Vice President, USA Utility and Smart Grid Business for Schneider Electric. “Being asked to assist USGBC by providing our proven building and implementation perspective is an honor in this groundbreaking endeavor.”

The revised Demand Response LEED Pilot Credit will be published later this spring. Based on feedback from participating buildings, the market research generated in the market pilots and input from pilot sponsors, recommendations will be made for eventual integration of the Demand Response Credit into the Energy & Atmosphere Credits in the next version of the LEED rating system, LEED 2012.

To propel building community adoption of both demand response and the revised LEED credit, USGBC will be launching a series of utility service territory market pilots. Skipping Stone has been named as the market pilot manager and is currently developing stakeholder support with potential host utilities, market operators, regulators, enabling technology and services providers and other interested parties.

“This USGBC initiative is a game changer for the adoption of demand response by the commercial building sector,” said Peter Weigand, Skipping Stone Chairman and CEO. “We hope that the energy community gets behind these market pilots because this it is a great opportunity to help drive commercial sector adoption of load management programs.”

NEMA Commends FERC on Demand Response Compensation Ruling

The National Electrical Manufacturers Association (NEMA) commends the Federal Energy Regulatory Commission (FERC) for a recent decision that will improve the reliability and efficiency of the electric grid.

In its final rule, FERC has allowed locational marginal price (LMP) to be paid to demand response (DR) resources in organized wholesale energy markets. This means that electricity customers can enter into a voluntary agreement to be compensated to reduce usage when a utility transmits a DR signal.

“FERC’s decision will unleash technologies that provide the grid with new efficient ways to manage its loads,” said Kyle Pitsor, NEMA Vice President of Government Relations. “It will increase competition, allow new market entrants, and drive down costs for ratepayers. This policy is critical to the development of a smarter grid.”

LMP, the same market rate paid to generation resources, will be paid to DR technologies in situations when it meets a cost-effectiveness threshold. This threshold will consider DR’s impact on remaining loads to prevent ratepayers who are not engaged in DR from having to incur a greater cost per unit.

Cost-effectiveness thresholds are to be determined by regional transmission organizations and independent system operators by July 22, 2011, in a filing to FERC.

Because interaction between utilities and buildings is central to the Smart Grid, NEMA’s High Performance Building Council is developing with ASHRAE SPC 201, the interoperability standard that will allow all loads, generators, and meters within a high performance building to communicate in a common “language” with a utility.

Providing LMP in wholesale markets will encourage building owners to invest in DR to make their operations more efficient, from both energy and economic standpoints.

DR is one of the eight priority areas identified in the National Institute of Standards and Technology (NIST) Framework and Roadmap for Smart Grid Interoperability Standards.

“We have advocated that demand-side resources like DR ought to be compensated the same as supply-side resources,” said Jim Creevy, NEMA Director of Government Affairs. “FERC’s decision is a major step forward in that effort.”