Congestion Relief Program
A congestion relief program is a utility or ISO initiative that compensates distributed resources, demand response, or storage for reducing load on specific transmission or distribution constraints. Programs typically target known bottlenecks where non-wires solutions can defer expensive upgrades.
Participants agree to reduce load or inject energy when local sensors detect threshold violations. Payments reflect avoided congestion rents, value of deferred upgrades, or market-based bids. Some programs operate through seasonal auctions while others rely on bilateral contracts.
These programs create locational price signals for DER developers, encouraging them to site assets in areas with the highest congestion savings. They also provide data that informs future transmission planning and grid enhancing technology deployment.
Policymakers view congestion relief programs as pragmatic tools for accelerating renewable integration, especially when permitting new lines is challenging.
Technical Details
- •Targets specific substations, feeders, or transmission constraints
- •Uses telemetry or AMI data to verify response
- •Compensation can be performance-based, auction-cleared, or tariff-defined
- •Often coordinated with DERMS and distribution flexibility markets
- •Requires measurement and verification protocols
Why It Matters
Congestion relief programs unlock near-term hosting capacity and new revenue streams for DER portfolios. Tera maps program locations, incentive levels, and participating assets so developers can prioritize opportunities with quantifiable grid value.
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