Incentive Option 2 is available for DSGS providers or their authorized third party acting as demand response (DR) providers. Third-party DR aggregators and POUs are eligible to serve as DR providers. DR providers operating within the California ISO balancing authority area must have at least one proxy demand resource (PDR) registered to participate under the incremental market-integrated DR capacity pilot.
DR providers administering Option 2 receive incremental DR capacity incentive payments based on demonstrated capacity in excess of resource adequacy capacity commitments, if applicable. For example, if a DR provider has a maximum RA capacity commitment of 10 MW and demonstrates capacity of 12 MW, the incremental demonstrated capacity is 2 MW. Demonstrated capacity is calculated based on resource availability and performance during a defined availability window. The DSGS incremental DR capacity prices vary by month and day-type selection, ranging from $7,200 to $19,200. Reference the FAQ for the monthly prices. DR providers shall allocate incentive payments between the DR provider and its participants pursuant to the terms and conditions agreed upon by the DR provider and participant.
Bonus Payment: DR providers will be awarded an additional 30 percent bonus applied to capacity incentives for program years 2023,2024, 2025, and 2026. Additional bonuses in future years may be provided at CEC discretion.