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Siemens Smart Grid and Direct Energy Business: Efficiently Managing Demand Response for You

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Siemens Smart Grid supplies products and solutions for intelligent and flexible electrical network infrastructures. To meet growing energy needs, the networks of today and tomorrow must integrate all forms of power generation and ensure bi-directional energy and communication flows. Intelligent networks help make it possible to generate and use power efficiently and on demand.

Siemens is the only company that offers a complete spectrum of solutions and services for the protection, automation, planning, monitoring, and diagnosis of the grid infrastructure. This post was written by Sachin Gupta, global sales lead for Demand Response at Siemens Smart Grid.

As you may have heard, this past August, Siemens Smart Grid and Direct Energy Business signed a contract to install a Demand Response Management System (DRMS). Basically, Direct Energy Business will roll out the Siemens DRMS solution to manage existing load commitments in multiple Independent System Operators (ISOs) regions, including PJM, ISO-NE, ERCOT, and NYISO. The technology will allow Direct Energy Business to more efficiently manage power demand requirements for its customers, especially during times of peak usage.

But, what are demand response (DR) programs and how do they impact your business? They essentially help control power usage by giving you the ability to voluntarily reduce energy usage during specific times of the day when electricity prices may be highest, or during emergency situations. Peak power usage occurs when a high number of consumers are using energy at the same time. By providing in-depth information about their energy usage, customers are able to reduce power demand, and utilities and ISOs are able to better manage how much energy is needed to power our nation’s grid.

With DR programs, retailers such as Direct Energy Business are able to simplify energy usage for customers. They can provide total insight into a business’ energy usage, provide knowledge on how energy is procured, provide retail electricity, and also offer DR. For customers, this signifies an easy way to contract for multiple energy services through a single provider.

Certain DR programs also allow consumers even more flexibility by allowing them to bid load into the markets on a predetermined basis, whether that be day-ahead, week-ahead, or month-ahead. Facilitating this with technology offers consumers the ability to login to a web portal and determine when, and at what cost, they would be willing to provide energy back to the grid. The Siemens system consolidates that information and helps to automate the bidding process between Direct Energy Business customers and the ISOs. Once the ISO makes the appropriate determination of which bids to accept or reject, notifications are then sent back to the DRMS application and consumers are informed if their bid has been approved. 

If you have questions or want more information about the Siemens DRMS offer, please contact your Direct Energy Business representative.

Sachin Gupta is the Global Sales Lead and former Product Manager for the Siemens Demand Response Management Software solution and is focused on market facing demand response activities. He is charged with developing and integrating demand side management capabilities into broader smart grid roadmaps for customers.

Posted: October 07, 2014