Worcester, MA, U.S.A. — (METERING.COM) — February 25, 2010 – Energy and green commodities online exchange operator World Energy Solutions has launched the industry’s first online marketplace for demand response, enabling customers to source demand response more efficiently and effectively.
With the World DR Exchange(TM), curtailment service providers (CSPs) can be engaged in highly structured auction events designed to yield price transparency, heighten competition, and maximize their share of demand response revenues, changing the economic and competitive dynamics of the multi-billion dollar demand response market.
"World Energy is … creating an efficient, transparent and liquid marketplace that benefits customers and suppliers alike," said Richard Domaleski, CEO of World Energy. "For customers, The World DR Exchange answers the key question, ‘what is the market value of my curtailable load?’ – netting them more demand response dollars in the process. For CSPs, it addresses the high cost of customer acquisition, providing a low cost channel to qualified customers."
Demand response is one of energy technology’s highest growth sectors, with Barclays Capital estimating the market could grow to $20 billion annually by 2020. In demand response, CSPs work with customers to curtail energy usage during times of peak demand, providing a valuable service to grid operators. In return for this service, operators pay a set price per megawatt to CSPs, who in turn pass on a portion of this payment to their customers. For companies looking to keep more of their curtailment proceeds, the World DR Exchange offers a compelling new way to engage the CSP community.
World Energy has run over 14,000 successful pricing events on its exchanges, The World Energy Exchange(R) and The World Green Exchange(R). The World DR Exchange(TM) builds on this lineage, delivering a state of the art system and process for auctioning demand response.
World Energy consults with its clients, develops and markets their RFPs to the CSP community, runs the online auction – typically a series of auctions testing various terms – and, on selection by the customer, awards the winning contract. On the World DR Exchange, CSPs bid against each other in real-time “forward auctions,” driving up the percent of demand response revenue the winner will share with the customer.