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Energy-Efficiency Funds and Demand Response Programs, North Carolina

Updated June 2007

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

North Carolina has no public-purpose-funded energy efficiency programs.

What utility energy efficiency programs are available to me?

A limited number of utility energy efficiency programs—many informational and training—are currently available to federal customers, many by municipal utilities and rural electric cooperatives. See the state government section below for more information and access to a listing of these programs.

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

Duke Energy offers its large commercial customers the NC Standby Generation program, in which participants can receive energy credits for responding to emergencies on an "as available" basis, or both energy and capacity (based on average load shed) credits for committing to a specified shed during 80% of all called events. A related program, NC On-Site Generation, targets customers that do not currently own back-up generation but would like to. Duke will install, own, and operate new generators (300 kW or larger) for participants willing to let the company use them in times of grid stress or high wholesale prices. There is a monthly service fee for this rate based on the levelized cost to own and operate the equipment.

Real time pricing is available to Duke Energy's large customers through its NC Hourly Pricing service. Customers are notified of the hourly energy prices for the following day. Participants are alternatively credited or charged, based on the hourly price, for usage below or above a pre-determined customer baseline load profile.

Progress Energy (Carolina Power & Light) provides an optional real-time pricing tariff (PDF 104 KB, 4 pp) to large customers (1,000 kW). Participants are notified a day in advance of the hourly energy prices for the following day, and are charged or credited at these rates for any usage above or below either their actual predicted load or a customer-selected "pricing baseline." The latter option permits participants to hedge part of the additional risk of real-time pricing, but involves a fee.

Progress also offers several discounted curtailable and dispatchible riders for customers that can shed load upon request. These rate riders offer favorable terms for general-use electricity in exchange for dedicated load that can be reduced at the company's request.

Dominion (North Carolina Power) offers its Day Ahead Hourly Pricing (PDF 16 KB, 5 pp) (Rider RTP) program for customers larger than 5,000 kW. Customers are notified a day in advance of the hourly energy prices for the following day.

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers two demand response programs that may be attractive to federal faciities:

  • The Emergency Load Response Program 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") or $0.50/kWh, whichever is greater, 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 provide a load reduction. Retail electricity customers may participate through any PJM Member (for example, their electricity provider) or directly, by registering as a Special Member with PJM.
  • The Economic Load Response Program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. As with the PJM emergency program, participation is fully voluntary. Program participants have the choice of two options: the Day-Ahead or Real-Time Option. 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. 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. 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). 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.

In both the emergency and economic programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation.

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.

The NC GreenPower Production Incentive offers payments per kWh produced to producers of electricity from solar, wind, biomass, and small (< 10 MW) hydropower installations. NC GreenPower, an independent non-profit created by numerous stakeholders to promote renewable generation throughout North Carolina, issues periodic RFPs based on consumer demand for renewable electricity in the state, but owners of sub-10 kW PV and wind systems can apply at any time. Remuneration rates vary by technology and time, but were recently about $0.22/kWh for PV-generated electricity.

Through the Green Power Switch Generation Partners Program, TVA will purchase the output of a solar photovoltaic installation of up to 50 kW (though larger systems may be approved on a case-by-case basis) at $0.20/kWh. Purchases must be brokered by a participating power distributor (generally, utilities in the TVA territory).

Are there energy efficiency programs sponsored by the state government?

The Energy Office in the North Carolina Department of Administration offers several energy efficiency and renewable energy programs. A list of available programs—mostly informational but also some technical assistance—offered both by their office and by utilities around the state is available through their web site.

What additional opportunities are available to me?

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