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White Paper Draft -- Applicability of SIP in SmartGrid Demand & Response Communication
A Demand Response (DR) program is a critical component, typically developed and offered by Utility companies/ISOs that offer participants to contribute effectively for better energy load management/ reduction. Typical participants include individuals as well as small and large corporations. A DR program typically ties in with a dynamic pricing scheme for electricity where participants, depending on a variety of factors (such as time of day, price etc.) can actively participate in requesting a Utility for increase or reduction of electricity demand. While this helps in cost reduction for participants, it significantly helps Utility/ISOs reduce their own cost and manage distribution of electricity (which is a finite resource) better. Several Utilities/ISOs offer incentive programs to participants for taking part in DR programs (consider a larger enterprise which can request its Utility to shed load from 10PM – 3AM due to reduced work loads). In addition to DR, automation of DR is a key concept which helps reduce human intervention and increases accuracy and responsiveness to the DR program.
The primary goal of a DR system is to improve electricity grid reliability and reduce peak electricity prices by reducing peak demand. A DR system also plays a critical role during emergencies and/or contingencies.
The SIP Forum SIG believes that protocols such as SIP are an ideal fit for the DR ecosystem and offers significant advantages in being able to lay out an event driven architecture for such as DR system and its automation. Furthermore, we believe using SIP will offer significant advantages to DR systems in terms of customization automation programs, creating bidding scenarios and new services easily that may not exist today.