Approval of Market-Based Demand Response Compensation Rule likely to open new markets and to accelerate deployment of new technologies
Viridity Energy, a company leading the next generation of distributed energy resource management, today commended the Federal Energy Regulatory Commission (FERC) on its decision to establish just and reasonable compensation to customers, who provide demand response services to the electric grid.
"The Commission's decision recognizes the value demand response provides to the nation's electric grid and to customers," said Audrey Zibelman, President and CEO of Viridity Energy. "The decision empowers customers to take control of their electric bills and to provide a service that enhances the reliability of the grid while improving the competitiveness of electric markets."
The recent FERC ruling will encourage customers to be more engaged in energy markets, promote efficiency and facilitate the broader adoption of demand response, which has proven to be a valuable resource for maintaining grid reliability and price stability. Demand response participants will be compensated for their engagement at the same price that generators are paid, referred to as the locational marginal price (LMP).
"The rule adopted by the Commission recognizes that demand response is a valuable service provided by customers to both the electric grid and to other users and in turn will provide the incentives for such service to flourish," added Zibelman. "Although it may be hard to see the direct implications today, in time we will see that this decision is as important as any in the Commission's distinguished history including the decision to open up the energy markets via open access."
Viridity Energy is paving the way for a new generation of demand response through its innovative distributed demand management software system and services, which transform large energy consumers into 24/7 virtual power plants. The company works with large institutions such as college campuses, federal and municipal complexes, military bases, transit systems, industrial companies and hospitals to optimize their portfolios of buildings and energy investments by creating unified power assets. These power assets are then sold in real-time into the wholesale energy market, allowing facility operators to maximize the monetization of their building and energy investments. By using resources more efficiently and controlling their energy load, large energy consumers become active participants in reducing energy consumption, optimizing energy resources and balancing the electric grid.
About Viridity Energy
Viridity Energy is making the next generation of the smart grid a reality by providing large energy consumers with powerful tools to increase energy efficiency and decrease energy costs. The company's unique and flexible VPower™ platform solution enables customers to dynamically shift and balance energy load, integrate advanced energy technologies and convert existing energy investments into lucrative new revenue streams. Viridity Energy helps organizations achieve sustainability goals and contribute to the greater good by stabilizing energy price fluctuations. Headquartered in Conshohocken, Pennsylvania, Viridity Energy was founded in 2008 by former executives of PJM Interconnection. For more information, visit www.viridityenergy.com.
Contacts:
Viridity Energy
Travis Small, 617-391-9654
tsmall@rasky.com