Advanced Energy Management Alliance Formed

The formation of the Advanced Energy Management Alliance comes at an opportune time as the role of demand response is transforming from primarily serving as an emergency resource into a core operational resource for utilities and grid operators.
Published: Thu 20 Feb 2014

Major demand response providers and consumers have formed the Advanced Energy Management Alliance (AEMA), with former FERC Chairman Jon Wellinghoff serving as strategic counsel for the group. Among the leading demand response providers that formed the group are EnerNOC, Comverge, Johnson Controls, IPKeys and Landis+Gyr.

The aim of the Alliance, a new trade association, is to promote energy consumption management and electric grid efficiency. It will be advocating policies that empower and compensate customers to manage their energy usage, and to make the electric grid more efficient, reliable, environmentally-friendly, and less expensive.

AEMA Chair Rick Counihan of EnerNOC added that the group would "bring the demand response community together to leverage our resources and to work as one voice for sensible policy and regulation."

The group will also be representing consumer interests through a "multi-stakeholder approach," since large end-users of demand response believe consumers and end-users can play an important role in shaping decisions and policies that impact energy markets. Wellinghoff's role as counsel in meant to give him the opportunity to approach demand response issues from the customer side of the equation.

"While the markets for demand response and consumer engagement have evolved, especially during my tenure at the Federal Energy Regulatory Commission, we have a great deal of work left to do both at the federal and state level," explains Wellinghoff.

Frank Lacey of Comverge and AEMA vice chair added: "Our goals are to increase awareness of the benefits of demand response and to pro-actively advocate for programs and rule structures that make business sense for customers while meeting the needs of grid operators and utilities."

AEMA secretary-treasurer Bruce Campbell of Johnson Controls stressed that demand response allowed consumers to control energy costs and directly benefit from becoming resources to the grid; reduced the need for additional fossil-fuel generated power; and expanded the ability for energy to be managed to the benefit of all participants on the electric grid.

Demand response makes energy markets more cost-effective for consumers and reduces stress on the electric grid, the group added.

"With the proper planning, demand response resources can meet a variety of needs on the grid, including providing capacity, energy, and ancillary services. Demand response also allows customers to reduce their electricity bills through peak load management, and other facility management tools. For consumers to reap the full benefits of demand response, the appropriate regulatory structures are important. AEMA seeks to ensure that advocating for those constructs is done in a unified manner."

Further reading:

Advanced Energy Management Alliance-Empowering Consumers Through Demand Response