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FERC Chair: Demand Response Worth More Than Peaking Generation

| Written by John Farrell | No Comments | Updated on Dec 2, 2010 The content that follows was originally published on the Institute for Local Self-Reliance website at

Wholesale market operators should probably pay providers of smart energy demand more than gas plant generators for ancillary services such as operating reserves. Why? Because the faster response of “a battery or a dishwasher or a water heater or an aluminum pot or compressor in a Wal-Mart [that] can respond on a microsecond basis… should be rewarded a higher payment because, in fact, it’s providing a better service.”

About John Farrell

John Farrell directs the Energy Democracy initiative at the Institute for Local Self-Reliance and he develops tools that allow communities to take charge of their energy future, and pursue the maximum economic benefits of the transition to 100% renewable power.


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