Lower energy prices beat demand response program incentives
Tangent drives greater, more sustainable savings than DR.
If you are a C&I company using or considering demand response (DR) to reduce energy costs, here are three reasons why Tangent’s on-site approach to balancing energy supply & demand is better:
- Significantly higher cost savings
- Less disruption from curtailment
- More controllable, predictable, sustainable economics
Greater savings
Lower energy prices save more money than DR program incentive payments.
Tangent lowers energy prices by balancing both supply and demand to avoid premium pricing situations on the grid.
By contrast, DR program payments are solely linked to reducing demand and may do nothing to lower energy prices.
The figure below illustrates the superior savings Tangent drives by reducing the price on all energy usage; versus typical program payments linked to successful participation in DR curtailment events.
Less Disruptive
Tangent’s solution is much less disruptive than curtailment to normal business operations.
DR programs are driven by the needs of utilities and power pools. Participation levels are set in advance and as a result, curtailment events can force DR customers to choose between reducing energy usage and normal business operations.
Tangent was designed specifically for C&I energy customers. Instead of cutting energy when grid conditions are stressed, Tangent’s customers avoid premium pricing situations by sourcing approximately 30% of their energy from a clean, low-cost on-site generation asset. On rare occasions when energy from the asset is not available or sufficient, automated customer-determined efficiency measures selectively adjust industrial processes, lighting and HVAC to levels to avoid high prices.
More controllable, predictable, sustainable costs
Tangent’s price-based savings also offer significant business planning advantages.
DR program-based savings are subject to multiple outside influences including: changing participation requirements, regulatory approvals and energy grid conditions. This conditional savings structure doesn’t provide a solid foundation for business planners.
Tangent’s savings are grounded in a long-term PPA and lower commodity prices that can be reliably predicted into the future using established energy pricing structures. For business-minded C&I customers, Tangent’s predictable and sustainable savings are an important difference.
Our model also provides additional business-friendly benefits including:
- No risk: Clean generation assets are financed by Tangent at no capital cost to customers.
- Aligned interests: Our solution was developed specifically to help customers; DR was developed for utilities.
- Clean energy: On-site generation assets position your company as environmentally friendly.
Contact us to learn more about how Tangent compares to demand response.