We specialize in assisting clients to manage the new challenges and opportunities in the new dynamic locational marginal price (LMP) based electricity markets. The LMP models were adopted for scheduling, dispatch and pricing during early years of market reforms where demand side was inelastic and did not participate in the spot markets.

In March 2011, the US Federal Energy Regulatory Commission issued a landmark ruling which requires wholesale electricity market operators to pay demand response providers the same LMP which are paid to the generators when dispatch of those resources is cost-effective. This regulatory change together with the smart grid technologies offer new opportunities and challenges for all stakeholders in the power industry, moving towards a truly level-playing field between sellers and buyers.

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Demand-Side Management