Utility is aggressively marketing a demand response program to my cultivation client. Capacity
payments look attractive, roughly 62,000 a year for a 400 kW commitment.
The problem is that this client cannot curtail 400 kW without harming the crop. Lighting cannot go
dark mid-cycle. HVAC and dehumidification cannot pause without risking mold. What is actually
sheddable is the trim room, the office HVAC, and some of the dry room, and that is maybe 90 kW on a
good day.
They have backup generation, and the program does allow generation-backed curtailment. Running 800 kW
of diesel during called events would satisfy the commitment. Fuel and maintenance cost per event is
real, air permit implications are real, and I am not qualified to evaluate the permit question.
Where I have landed is that they should enroll at a level they can actually meet with load, not
generation, which is about 90 kW and worth roughly 14,000.
The failure mode I am trying to prevent is enrolling at 400, failing to perform, and paying penalties
that exceed the capacity payments. Has anyone seen a client get burned this way?
payments look attractive, roughly 62,000 a year for a 400 kW commitment.
The problem is that this client cannot curtail 400 kW without harming the crop. Lighting cannot go
dark mid-cycle. HVAC and dehumidification cannot pause without risking mold. What is actually
sheddable is the trim room, the office HVAC, and some of the dry room, and that is maybe 90 kW on a
good day.
They have backup generation, and the program does allow generation-backed curtailment. Running 800 kW
of diesel during called events would satisfy the commitment. Fuel and maintenance cost per event is
real, air permit implications are real, and I am not qualified to evaluate the permit question.
Where I have landed is that they should enroll at a level they can actually meet with load, not
generation, which is about 90 kW and worth roughly 14,000.
The failure mode I am trying to prevent is enrolling at 400, failing to perform, and paying penalties
that exceed the capacity payments. Has anyone seen a client get burned this way?