CAISO Approves New Open-Source Advanced M&V to Increase Confidence In Demand Response

December 8, 2021

Recurve is pleased to announce the release of the CAISO sponsored “Demand Response Advanced Measurement Methodology statewide study resulting in the open-source FLEXmeter becoming eligible to clear demand response transactions in the CAISO market.

California ISO report on Demand Response Advanced Measurement Methodology
CAISO sponsored statewide study on the impact of demand response during the summer 2020 rolling blackouts. Read the full report here.

In response to the rolling blackouts California experienced in August of 2020, the California Independent System Operator (CAISO) asked Recurve to test new advanced FLEXmeter methods to more accurately measure the contribution of demand response to increase confidence in demand side resources and encourage greater market adoption. 

The study’s goal was to provide more confidence in the ability of demand response market integrated virtual power plants to rapidly balance load and reduce dangerous system peaks. The open-source, data-driven FLEXmeter methods combine hourly site-level models with automated non-participant GRIDmeter comparison groups, resulting in a revenue-grade measurement of net impact to the grid.

"As the independent market operator, ISO seeks to settle demand response transactions transparently, appropriately, and fairly for their supply-side performance value. The FLEXmeter methodologies described in this report would allow the ISO to fulfill that objective consistent with the ISO Tariff."

Anna McKenna, Vice President of Market Policy and Performance,  CAISO

The report concluded that “The FLEXmeter approach produced quality comparison groups in each case and successfully measured impacts even during extreme events,” and that the methods are compliant with FERC-approved control group methodology outlined in the CAISO tariff, meaning that the FLEXmeter can now be used to settle CAISO market demand response transactions. 

In our next post, we'll explain more about the report, the methods, why they matter, and how they can provide confidence to ISOs seeking to integrate demand response and other demand flexibility resources into the grid.

Learn more about how the methods work on the FLEXmeter website.

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