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Joule Assets specializes in developing easy, web-based tools to simplify the task of capturing the value of Energy Reduction Assets (ERAs). We then work with stakeholders—including end-users, engineering & equipment vendors, energy service providers, and others— to help them realize the economic and environmental benefits that can come from reducing our dependence on carbon-based energy.
There are three categories of Energy Reduction Assets that can earn revenues, rebates, and other incentives:

1. Demand Response: Decide when to consume electricity from the grid according to price or stress on the grid.
2. Energy Efficiency: Permanently reduce energy consumption while performing the same productive activities at home or at work.
3. Renewable Energy: Offset consumption of electricity from the grid with low-carbon alternatives.

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Demand Response (DR) programs pay customers to temporarily reduce electricity consumption in response to supply conditions. When the electric grid is under stress or prices reach a specific threshold, DR program participants are asked to reduce (or "curtail") their energy use. Customers can manually curtail electricity consumption (turn off lights, switch to on-site generation, etc.) or automated systems can be set to respond to these events. Depending on the program, participants with ERAs based on demand response are either paid when events occur or are paid for being available to curtail.

DR programs arise from the fact that it is often more cost effective to pay consumers to temporarily reduce consumption than it is to pay generators to increase production. In other words, grid operators find DR valuable because it ensures grid reliability at the lowest possible cost. Reliable DR can even reduce the need to build power plants.

Because grid operators need many tools to ensure that consumption and generation are always in balance, DR has become quite sophisticated. Consumers may be notified a day, an hour, 10 minutes, or even 4 seconds ahead of when DR is required. Generally, the quicker and more reliably a consumer is able to respond, the greater the potential revenue, but payment for participation varies widely, depending on a facility's location.

Example Demand Response Event:

This demand response event comprises a reduction of 2,200 kW over a 4-hour curtailment event. In most capacity and reserve markets, demand response resources are paid for availability and must be available if called upon. In energy markets, they are paid for the amount of participation. The table below demonstrates the revenue potential for an example facility for different locations and programs.
Paid for Participation - this means that you receive payment in the event that you are actually called upon to reduce energy consumption.
Paid for Availability - this means that you are paid for being available to reduce energy consumption, regardless of whether an event takes place or not.

For additional information, please consult the following resources:
Department Of Energy: Demand Response
Demand Response Wiki
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Energy Efficiency measures reduce the electricity used to perform the same task. This can be accomplished in many ways, including replacing aging equipment or improving your facility’s insulation. Your electric bill may be reduced if you reduce either of the following: the total amount of electricity you use or the amount of electricity you use during hours when the grid is being used at peak levels.
By creating an ERA based on energy efficiency, you may gain several possible benefits:

• Permanent Demand Reduction (PDR) arises from an energy efficiency project that permanently reduces the peak demand at a facility. In some markets, you can receive compensation for PDR.
• Financing equipment upgrades (utility or government rebates or private financing offers)
• Recurring revenue or savings (revenue opportunities are set up by government-enabled markets, grid operators, or utilities and will generally require registration of the energy efficiency measure and a measurement plan)

When you become more efficient you can benefit from the following opportunities:

An example of a commercial energy efficiency project:

Upgrade 1,000 T12 fluorescent light fixtures with new reduced wattage T8 Lamps and Ballasts. Revenue can come from rebates provided by utilities. Where available, additional revenue can come from peak demand reduction programs and white certificates. Note: Residential rebates are also available.
For additional information, please consult the following materials:
Department of Energy: Energy Efficiency
Energy Savings Certificate Markets: Opportunities and Implementation Barriers
Energy Efficiency Wiki
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Financing for renewable energy installation is available through utilities, governments, and private companies, depending on location. Many renewable energy technologies are not yet cost-competitive with mature fossil fuel generation technologies. This will change as production scales up. To overcome this barrier, governments have created ERA markets that offer additional value for renewable energy:

1. Investment Tax Credits
2. Production Tax Credits
3. Energy Market Earnings (also available for fossil generation)
4. Peak Capacity Market Earnings (also available for fossil generation)
5. Certificates for the renewable asset that can be registered and sold
6. Feed-in Tariffs (government, utilities) that pay a set amount per unit generated
7. Net-Metering Credits

A renewable energy ERA often targets one technology. For instance, photovoltaic installations are eligible to receive tax benefits, upfront prescriptive rebates (which pay customers a percentage of the installation cost), and performance based incentives (which pay customers based on the amount of clean electricity they produce). Additionally, by producing solar electricity on-site, customers can dramatically reduce the amount of electricity they need to buy from the utility. With the price of electricity on the rise, a customer's utility bill savings will continue to increase over time.

A photovoltaic system's commercial viability depends on incentive availability, solar insolation, and electricity prices. For the purposes of estimating potential revenue, we compare several locations and customer types in the tables below:
For additional information, please consult the following materials:
Department of Energy: Renewable Energy
NREL: "Buying Green Power and Renewable Energy Certificates"
Renewable Energy Wiki Close

Joule Assets specializes in understanding and explaining the value of ERAs for stakeholders. The value of a facility’s ERAs is dependent on many different factors including location, size and type of facility, and kinds of uncertainty an end-user is willing to accept. There are literally thousands of programs, each with eligibility requirements that may change over time and where ERA value is determined by hourly-changing electricity markets and also by shifting regulations.

Joule makes it simple to help end-user navigate the complexities that may seem daunting at first. By leveraging the knowledge of industry professionals from within energy markets, we have created a suite of web-based tools that take clients from a state of having no understanding of ERA markets, to a state of seeing the potential value of their ERAs and finally to a state of being willing to engage an engineering vendor or an energy service provider.

Get a free ERA opportunity assessment or contact us tofind out how to add our services to your company’s value offering.
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