1 Applied Valuation of Demand Response Under Uncertainty: Combining Supply-Side Methods to Value Equivalent Demand-Side Resources

In today’s rapidly changing energy markets, the role of direct load control programs are increasingly recognized as an underutilized resource 1 capable of providing numerous benefits to our electricity grid and to our society as a whole. Although different names are used to describe these programs, we use the term Demand Response (DR) to include the overarching segment of load participation resources. Although the overall benefits of demand response programs have been classified, there continues to be debate as to how to value these benefits. The practitioners of demand program design, implementation, and evaluation rely on protocols that have been developed over years and accepted by regulatory commissions 2. However, these methods were largely constructed for the evaluation of conservation programs. DR programs have unique characteristics that allow a direct comparison with fossil fuel generation – these programs operate and provide similar benefits as traditional generators