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FAQ

REGULATION SERVICE
What is Regulation Service?
Electricity demand changes over the course of the day, with a peak demand level often as much as 60% higher than the lowest level. Grid operators match this relatively smooth and predictable curve of demand by adding or removing generation from the system.

In addition to these large movements, demand (also referred to as "load") and supply fluctuates constantly, resulting in small imbalances. Throughout the day, grid operators work to correct this ongoing imbalance by adjusting the electricity output of generators. This adjustment is referred to as Regulation Services.

Changes in the electricity system including the addition of intermittent renewable generation, such as solar and wind power, have increased the requirement for Regulation Service to maintain balance of the electricity system.

Smart Grid innovation has opened the door for responsive municipal, industrial and commercial loads to participate as a market resource and address the growing demand for Regulation services, also known as Load Based Regulation (LBR) or Alternative Technology Regulation (ATR).
Is Regulation Service the same as Demand Response (DR)?
No. DR is a method of influencing industrial consumers to reduce electricity demand at specific and designated times when broad market consumption is high and demand for electricity must be curtailed.

Regulation Service is a service that continuously balances the electricity network in real-time and what is required throughout the day, regardless of market demand.

DR "events" typically occur a few times per year. Regulation Service requires the abilities of a sophisticated network -- because there are over 5 million Regulation requests per year.
How is the value of Regulation Service determined?
Each device or regulation resource will have its own unique regulation potential. There are four factors that determine the value of Regulation Service:

1.Regional Pricing - The value of Regulation Service varies in each market

2.Resource Availability - Each resource's work function will impact its availability to generate revenue from Regulation Service

3.Resource Range - Each resource's flexibility will determine the capacity or volume of regulation it can supply

4.Speed of Response - Resources that can respond quickly may be given priority and may be called upon more often for regulation
How is energy Consumption, Demand and Regulation Service measured and verified?
ENBALA will install electrical metering equipment to measure consumption, demand and regulation service. These meters are networked back to local site controllers and store comprehensive data logged in a secure database for audit purposes. Information is made available to Resource Partners, providing an additional energy management benefit.
INDUSTRY TERMINOLOGY
What is an ISO or RTO?
Across North America, many electric power utilities have been restructured to create open and competitive energy markets. The adoptions of competitive markets require the regulatory decoupling of regional electricity generation (supply) from transmission and distribution (demand).

After this restructuring, a central authority in each region was required to manage the electricity system and ensure market quality from generation through to consumption. To achieve this, Independent System Operators (ISOs) and Regional Transmission Operators (RTOs) were created.

These authorities have control over both the generation and transmission systems and they also run the market operation for electricity.
What is the Smart Grid?
The Smart Grid uses two-way communications systems to monitor and automatically optimize the operation of the elements of the power system from the generator through the high-voltage network and distribution system, to end-use consumers and their thermostats, appliances and other commercial and household devices. Communications take place in real-time, helping to balance the demand and supply of generation in the electricity market.
RESOURCE PARTNERS
Are Resource Partners eligible to participate if their business operates with contracted Demand Response obligations?
Yes. Resource Partners with DR and other market contracts in place can qualify and be rewarded for supplying Regulation Service. ENBALA will account for any existing contract conditions and apply them to each resource's network characteristics.
How much of my resources (staff) are required for implementation and ongoing support?
Typical Partner Resource support is required as follows:
  • Initial site audit / operational review - 1-2 hours
  • Initial Regulation proposal review - 1-2 hours
  • Detailed site audit and design review - 4-6 hours
  • Implementation and training - 4-6 hours
What kind of controls access is provided to Resource Partners?
Final control commands are always left with the Resource Partner's site operators. Resource Partners are provided with access to override and re-engage regulation commands on a local operator interface.
Do you control my facility?
No. We interface with your SCADA system as another input. All parameters of your existing operation continue to be obeyed.
What kind of interruption is required to install the controls system and begin regulation?
The typical installation requires a local communication panel to be installed, which generally takes place in one business day and does not cause interruption to the Resource Partner. During the connection to the existing resource's controls will require on average a 15-minute interruption. All installations will be coordinated with site engineers to minimize interference with day to day activities.
How often will my system be called upon? What response length is required?
This will depend on the type of resource. In all cases, ENBALA will honor device and process restrictions as defined by the Resource Partner and manufacture's literature.
Can a Resource Partner subscribe part time?
Yes. Large assets can still distill considerable value from part time participation.
What life cycle impact does Regulation Service have on my equipment?
Operating characteristics (cycles, frequency, duration, etc) typically do not change from normal operations, however the time phase of the equipment cycles will moderately be shifted to provide regulation. The increased amount of available flexibility inherent to the equipment will provide for more regulation, which will allow for a greater payment.
How will regulation conflict with my existing energy optimization controls?
Existing energy optimization controls and operations will not be negatively impacted. Regulation signals will fluctuate timing of equipment operation within the control and operational boundaries the resource partner sets for primary process and other operating requirements.
REGULATION SERVICE PAYMENTS
What happens to my regulation payment if we over ride or cancel a regulation request?
Payments are estimated based on resource utilization time or availability, and paid on a pro-rated basis.
How much revenue can be earned from Regulation Service?
Participation in the regulation market will enable individual resources to garner tens of thousands of dollars in annual revenue. Each resource's value is dependent on process flexibility, availability and corresponding regulation demand.
SYSTEM INSTALLATION AND MANAGEMENT
Who is responsible for the ENBALA local controls system?
ENBALA is responsible for the local control panel and will manage all related costs of procurement and installation of the equipment.
Who owns the controls systems? Are they integrated into my existing control system?
ENBALA installs a local control panel to interface with existing control systems. ENBALA is responsible for this equipment. In certain cases, new control points may be added to the existing control systems to provide accurate feedback which will provide an additional benefit to the Resource Partner by providing increased visibility into the process operation.
How is security of the system achieved and maintained?
Each ISO has its own set of security standards that govern communications with the ISO control centre. Each network link conforms to the security standards for the ISO and client to which it is connected.

ENBALA's control centre is installed in a facility specifically chosen for its ability to provide a very high standard of security and safety from both deliberate and accidental physical intrusion and failure.

Physical security at each site is the shared responsibility of ENBALA and the Resource Partner.

Logical communications between the ENBALA Power Network control centre and the sites participating in the network are over the internet but are secured by authenticating the identities of each site, verifying the source and integrity of all messages, and encrypting the content of all messages. Not only are the communications secured from outside intrusion, they are secured from every other site within the network.