A large manufacturing company in North America had relied on our Energy Supply Advisory team for electric procurement for years. However, their heavy production schedule had always made them hesitant to participate in a Demand Response (DR) program.
When our account managers identified a new program in the area and analyzed the offer, we realized that the client could potentially receive a significant cash payment by participating. We presented the opportunity to the client, along with the potential payout and risks, and thoroughly explained options for how the client could respond if they were called upon to curtail their load.
Our team created a comprehensive, three-scenario response strategy for the client that addressed their production requirements. These scenarios were a 10% reduction in plant load, a holiday schedule load and a full plant shutdown. To further reduce risk and optimize the potential payoff, we negotiated a no-penalty contract with a significantly higher revenue share than originally presented by the provider. As is custom in our demand response service, we evaluated and recommended an optimal curtailment service provider through a competitive bidding process. We further optimized the client’s benefit for participation by negotiating contract terms that addressed their specific concerns and production requirements.
Project Results & Key Metrics:
More than $500,000 in unplanned income over 3 years
Net electric spend reduced by 11%
Based on their level of comfort and trust in working with us, the client followed our recommendation to participate. The response strategy our team developed worked as planned, and participation resulted in more than $500,000 of unplanned income for the client over a three-year period, reducing their net electric spend by 11%.