The Plan Would Allow the Michigan Utility to Meet Grid Reliability Goals by Including Third-Party Aggregated Demand Response in Capacity Procurement For the First Time.
CPower Energy, the leading, national Distributed Energy Resource (DER) Monetization and Virtual Power Plant (VPP) provider, announced its support of the settlement agreement in DTE Energy’s proposed CleanVision Integrated Resource Plan (IRP), which for the first time will allow the Michigan utility to procure demand response (DR) resources aggregated by third parties to meet energy capacity requirements and decarbonization goals. By leveraging customer load flexibility, DTE will meet growing energy needs at a lower cost while also rewarding Michigan energy users for providing services to the grid. Such innovative procurement mechanisms are in line with those included in CPower’s demand response framework for midwestern energy stakeholders released last year.
Developed over the past two years with the input of DTE’s customers and stakeholders, including CPower, the 20-year CleanVision IRP dramatically transforms how the utility will generate and procure electricity to reliably meet the needs of Michigan’s energy users while accelerating the retirement of coal plants. The settlement agreement is currently awaiting approval by the Michigan Public Services Commission.
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“We applaud DTE’s leadership in including third-party aggregated demand response in capacity procurement,” said Peter Dotson-Westphalen, Senior Director – Regulatory & Government Affairs, CPower. “Virtual Power Plants made up of aggregated customer DR can provide clean, flexible energy capacity to meet the region’s reliability needs. The carefully crafted demand response procurement and incentive framework included in the CleanVision Integrated Resource Plan settlement agreement is a win for Michigan’s grid, energy users and environment.”
For years, many state commissions across the Midwest have been uncertain about their ability to regulate third-party DER aggregators, although Michigan and other states are now reevaluating their approaches to demand response due to projected capacity shortfalls and the need to lower energy costs. CPower works closely with midwestern energy stakeholders to share its expertise managing the most flexible DER capacity in the US across various energy markets to help utilities and regulators design frameworks that incorporate the various benefits that VPPs can provide the grid.
SOURCE: PRNewswire