Demand Response Programs restrict cloud-based solutions by cutting rebates.

In its program manual for demand response issued by PG&E and Energy Solutions, PG&E makes a bold statement about stranded assets and use of cloud-assisted demand response programs. Utilities have long worried about programs that depend on products and services that may cause stranded assets in the field, and PG&E has made a commitment to protect customers.

In its Automated Demand Response Program Manual for 2015/2016, PG&E has made a bold statement regarding cloud-assisted demand response programs - they won't provide rebates to cloud-assisted solutions.

In the document section 2.2.5 specifically states:

To manage the stranded asset risk, vendors and aggregators using cloud-based equipment must meet the following requirements:

1. The communication regarding DR event initiation and termination between the PG&E DRAS and the cloud as well as between the cloud and the customer must follow the OpenADR 2.0A or 2.0B protocol.


3. The local VEN on site includes the proper security certificate for connection to the PG&E DRAS end-point and must be able to connect to 2.0A or 2.0B


* Vendors that cannot pass the cloud-based project eligibility or stranded asset testing are allowed to connect to the PG&E DRAS but will not be eligible for a PG&E ADR Incentive.

To clarify this statement, the OpenADR protocol must be used to securely communicate from the utility to the customer site, therefore proprietary protocols that communicate from the cloud to the Demand Response system installed at the customer site are not allowed. This specifically precludes any devices that cannot run the full OpenADR protocol locally such as OpenADR cloud assisted thermostats.

Unlike solutions that are cloud assisted, Universal Devices ISY994 platform was architected with autonomy and independence in mind, all processing of OpenADR messages are completely within the gateway. Security of the protocol and messaging is guaranteed by the use of digital certificates and is certified compliant with the OpenADR protocol - end to end.

To find out more about Universal Devices ISY994 as a certified VEN for PG&E based OpenADR please reference our product sheet or contact us directly for more information at our website: