Respond Before Electric Emergencies

Over the past decade, power utilities and grid operators from California to Texas to the Northeast have experienced significant challenges in maintaining power supply during extreme conditions, but free programs and technologies have created opportunities—and revenue—for data centers to respond before possible blackouts.

On July 22, 2011, large areas of the US and Canada experienced a record heat wave. At data centers in those regions—and at homes and other businesses—air conditioners strained throughout the day, driving facility power usage to peak levels. The expectations were clear: Utilities forecasted record electric demand, and executives and public officials braced to deal with blackouts, business losses, and ill effects on public health and safety.

Yet catastrophe was averted, in large part due to the coordinated actions of thousands of sites across 12 states and Canada, including hundreds of data centers. These facilities contributed thousands of megawatts of "virtual power"—the equivalent of a nuclear power plant—by participating in free, utility-sponsored programs known as "demand response."

What is Demand Response?

Emergency demand response programs are the last line of defense for power grid operators before demand exceeds supply and rolling blackouts begin. Under such programs, data centers reduce the power they pull from the grid, usually by switching to on-site backup generators. Individual events usually last from a few minutes to a few hours; and depending on the program, they typically occur once every few years.

In return, grid operators pay facilities for the standby power capacity they offer—even if there is never an event. Facilities are often paid again for the power they "put back" during an actual event. These payments may total tens of thousands to hundreds of thousands of dollars, depending on the size and number of facilities and the specific program rules.

Why Participate?

In addition to regular cash payments, data centers receive:

Advance warning of pending grid emergencies, allowing time to prepare for possible blackouts.

Free monitoring hardware that reports power usage in one-to-five-minute intervals and free, web-based data access for better energy management.

Periodic generator tests that may replace scheduled maintenance.

The benefits of being a good neighbor, by helping local communities keep lights and air conditioners running at the most critical times.

As Paul Hone, group data center manager at InTechnology, noted, "Demand response gives us the chance to take a high-value asset, ensure its reliability, and even generate new payments. The question isn't why participate in DR, it's why wouldn't we?"

Getting Started

1. Confirm location eligibility. There are still regions that don't yet have such programs. Contact a demand response provider or your local utility to find out if there is a program in your area.

2. Determine fit for program. Some programs give you hours to respond, others just 10 minutes. A demand response provider can determine whether your operation is likely to fit local program requirements.

3. Get enrolled. Some programs have multiple enrollment periods, others just a brief annual window. A demand response provider should install the proper hardware, help develop a response plan, test the process, and get you enrolled at the best possible payment level.

4. Don't feel pressure! These programs are completely free, voluntary to enroll in, and easy to implement. You should not pay out-of-pocket costs, bear any penalties, or put your data center at risk in any way. Choose a provider with a track record, resources, and references that will get you into a program without hassle or expense.

Posted in: General News