
41 Smart Grid Conference 2014 (SGC’14) - Grid Renovation Workshop
Illustrative DSO/DSP Use Case (Cont’ed)
• CPS offer does not clear the ISO
market since its offer ($60/MWh)
exceeds the LMP ($40/MWh)
• With no DSP platform the CSP’s
DR offer would be left unutilized;
the expensive emergency
generator would have to be
operated to supply the 5 MW
shortfall.
• With the DSP in place, 5 MW of
DR is cleared locally against the
ESCO bid and the price is set
between $60/MWh and
$80/MWh depending on DSP
market-clearing rules (for
example allowing for 10%
distribution losses the price
would be $66/MWh)
DA
ESCO Bid:
$80/MWh
Load
Pocket
DR
DR
DR
ISO
CSP Offer:
$60/MWh
DSO
LMP: $40/MWh
DMP: $66/MWh
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