Skip Navigation to main content U.S. Department of Energy Energy Efficiency and Renewable Energy
Federal Energy Management Program
 
About the ProgramProgram AreasLaws and RegulationsInformation ResourcesFinancing MechanismsTechnologiesServicesHome

Energy Incentive Programs, Delaware

Updated September 2008

Below you will find questions and answers regarding Delaware's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.

What public-purpose-funded energy efficiency programs are available in my state?

Delaware's restructuring legislation mandated the creation of a systems benefit charge to fund low income, energy efficiency, and renewable energy programs. Though no public purpose-funded energy efficiency programs are currently (summer, 2008) available to federal customers, the state is creating a sustainable energy utility. The SEU, funded from the system benefits charge and a bond issue, is expected to sponsor a number of efficiency programs serving various customer classes starting sometime in 2009.

What utility energy efficiency programs are available to me?

No utility energy efficiency programs are currently available to federal customers.

What load management/demand response options are available to me?

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers several demand response programs, three of which may be attractive to federal facilities:

  • The Economic Load Response program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. Participation is fully voluntary. Program participants have the choice of two options: the Real-Time or Day-Ahead Option. In the Real-Time Option, participants can decide at any time to provide load curtailments (with one hour notice to PJM), and receive payment based on the real-time electricity price (minus their retail rate for generation and transmission). In the Day-Ahead Option, participants submit load reduction bids (of at least 100 kW) into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices (also with their generation and transmission rates subtracted). Reductions are figured based on a "customer baseline load" (CBL), essentially the average load levels for the same hours in four of the facility's previous non-responding days. Retail electricity customers can participate in the program through any existing PJM Member, such as their utility, a third-party electricity supplier, or a specialty "curtailment service provider" (CSP); they may also participate directly by becoming a "Special Member" of PJM. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage. Customers on real-time (hourly) electricity pricing can participate, but at much less attractive remuneration terms (since they are already exposed to market electricity rates).

  • The Emergency Load Response program (energy only) provides participants with a payment representing the marginal cost of power at the nearest hub on the PJM system (the locational marginal price, or "LMP") for providing load reductions when notified by PJM of a system emergency. Compliance with any load reduction request is voluntary; no penalties are assessed if a participant decides not to respond. Retail electricity customers may participate through any PJM Member (for example, their utility, third-party electricity provider, or an independent CSP) or directly, by registering as a Special Member with PJM. While the remuneration can be very high in an event, the emergency program is rarely called (only five times over the past three summers, and each time only in certain zones). However, emergency program customers may also participate in the economic program (above), as long as reductions are not credited toward both programs simultaneously.

  • Interruptible Load for Reliability (ILR) offering is an emergency "capacity" program in which participants pledge to either reduce their load by a specified amount (guaranteed load drop, GLD) or to a specific kW level (known as firm service level, FSL) within one or two hours of an event notification. Load reductions are mandatory and may occur up to ten times per year, lasting up to six hours per event. Penalties for non-compliance are substantial. Participants must register by March 2, 2009 (and should start sooner since registrations must be cleared by their third-party electricity providers and distribution utilities). Remuneration is based on the results of annual capacity auctions in various PJM regions, but ranges from about $40 to $80/kW (depending on the zone and year) through 2011-12. Most participants are also eligible to receive energy payments for actual reductions, if and when the program is called.

In all three programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation consistent with local environmental regulations and permits.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following programs may be of interest to federal customers:

  • Delaware's Green Energy Program provides grants for up to 50% of the installed cost of qualifying photovoltaic, solar water heating, wind turbine, and geothermal heat pump systems. Delmarva Power and Light (the state's lone investor-owned utility), the Delaware Electric Cooperative, and the state's municipal utilities each have their own program, but each is similar and all three are administered by the Delaware Energy Office.

  • The Technology Demonstration Program offers grants for 25% of the cost (up to $200,000) for projects that promote the commercialization and demonstrate the potential for renewable energy technologies. The program, like the Green Energy Program (above), is funded by Delaware's Green Energy Fund, a ratepayer-funded initiative. Program specifics are available through the fund's regulations (PDF 66 KB). Download Adobe Reader.

Are there energy efficiency programs sponsored by state government?

The Delaware Energy Office is actively involved in the development of the state's planned sustainable energy utility (see above), which is expected to offer a variety of energy efficiency programs beginning in 2009.

What additional opportunities are available to me?

Federal customers also have energy efficiency opportunities available with utilities that have area-wide contracts with GSA (e.g., Delmarva Power & Light) and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.

NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.