Navigant Research Blog

Adapting to the New Demand Response Landscape

— January 27, 2015

Demand response (DR) was first employed in the United States the 1970s.  At that time, DR was implemented as a component of the energy conservation focus of demand-side management (DSM) programs to encourage consumers to use less electricity during peak hours or to shift their energy use to off-peak times.  Utilities have run residential direct load control programs as forms of demand management and offered interruptible rates to commercial and industrial customers for many years.

Today, however, the electric grid needs resources beyond just meeting peak demand situations, requiring more flexibility and faster response.  A number of drivers point toward increased DR adoption by utilities and grid operators around the world.  The changing resource mix in electric grids globally is creating more potential for DR to play a pivotal role.  As coal and nuclear plants retire due to economic or environmental factors, clean replacements are needed that can be built in short timeframes.  Conversely, as large-scale intermittent renewable resources like wind and solar power fill in this gap, they require backup solutions when the wind is not blowing and the sun is not shining.

New Training Course

At the same time, new market types, including ancillary services such as spinning reserves and frequency regulation, are opening up to DR.  The concepts of resilience and microgrids have taken strong root along the Atlantic Coast following Hurricane Sandy in 2012, and DR will be an integral part of those developments.  The advent of grid modernization is also tied to this new view on how the grid should be designed.  With the proliferation of advanced meters that can record usage at very small intervals, more dynamic types of pricing can be applied down to the residential level.

To help utilities navigate through this changing landscape, the Peak Load Management Alliance has developed a series of DR training courses.  The next session, DR Program Design and Implementation, will take place from February 18 to 19, hosted by NV Energy in Las Vegas.  The 2-day course will first cover program development topics like DR program types; how to determine market potential; designing programs and managing portfolios of programs; and calculating cost-effectiveness.  The second day will delve into program implementation strategies and tactics such as staffing and operations; strategic outsourcing; technology architecture and integration; and evaluation, measurement, and verification.

A Visit to the NOC

NV Energy is a pioneer in testing out innovative DR program designs in an extreme climate.  The company has a diverse portfolio of programs that includes a range of applications, along with various flavors of direct load control, dynamic pricing, and DR in combination with energy efficiency programs.  The Las Vegas course will include a visit to NV Energy’s operations center, along with a first-hand look at its DR management system in action.

For utilities considering or being required to implement DR programs (which includes just about every utility today), this is a great opportunity to hear from industry experts and meet peers from across the country to exchange experiences and best practices.  For more information on the course, please click here.

 

Behavioral Programs Yield Savings for Customers

— August 5, 2014

A new study of four rural cooperative utilities in Minnesota demonstrates that behavioral programs based on smart meter data can help customers become more efficient electricity users.  And while the results were encouraging, the savings were not overly dramatic, falling within the range of expected outcomes based on other similar programs.

Among the four Minnesota utilities, the average annual residential electricity savings ranged from 1.8% to 2.8% for customers who opted in to the MyMeter program, a web-based system that users can access to manage consumption.  The four cooperatives involved in the programs were Beltrami Electric Cooperative, Lake Region Electric Cooperative, Stearns Electric Association, and Wright-Hennepin Cooperative Electric Association.  The total number of households was more than 14,000.

MyMeter is a software solution provided by startup Accelerated Innovations that features four key offerings for customers who opt in: help with load management and efficiency, visualization of energy use, improved billing options, and a communications platform.

Consistent Findings

The study compared the four Minnesota cooperatives’ results with two utilities in Massachusetts that had gone through an evaluation of similar efficiency programs.  Results from Western Massachusetts Electric’s program showed average savings of 1.9%, while savings among customers taking part in Cape Light Compact’s program averaged 1.5%.  Though these results were somewhat lower than the Minnesota figures, the study authors viewed them as within the range of expected savings.

Although they weren’t part of this study, it is useful to note results from Opower, another behavioral-based vendor that helps utilities’ customers lower their energy consumption.  Opower says its behavioral programs can reduce energy consumption by 1.5% to 2.5%, on average – close to what the cooperatives achieved.

One benefit of the program for the four Minnesota cooperatives is that the state’s department of commerce has accepted the results and will allow the four to count the savings toward a state-mandated goal, which calls for energy savings of 1.5% of annual retail energy sales for each utility.

The programs used by the four Minnesota cooperatives are a clear example of what can be done when utilities leverage smart meter data by giving customers access to the information and the tools they need to reduce consumption.  Other utilities that have deployed smart meters should take note.  Behavioral programs can help achieve two goals: meeting regulatory mandates for overall energy reduction and satisfying customers who want new ways to manage their energy budgets.

 

Blog Articles

Most Recent

By Date

Tags

Clean Transportation, Electric Vehicles, Policy & Regulation, Renewable Energy, Smart Energy Practice, Smart Energy Program, Smart Grid Practice, Smart Transportation Practice, Smart Transportation Program, Utility Innovations

By Author


{"userID":"","pageName":"Demand Side Management","path":"\/tag\/demand-side-management","date":"3\/27\/2015"}