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Missed Opportunity: Few utilities fully integrate energy efficiency and demand response
(ACEEE blog, 10 Sep 2019) In a large missed opportunity to boost power grid flexibility and benefit customers, relatively few US utilities have programs that fully integrate energy efficiency and demand response, according to ACEEE’s robust review of 44 utility filings.
Across the United States, we found 22 utility programs that integrate energy efficiency (EE) and demand response (DR) to some degree, but only five fully integrate them into a single program. Such integration can help grid operators meet customer demand reliably and at low cost, especially as more renewable resources enter the grid.
Because EE and DR can be complementary, many experts and organizations have long recognized the benefits of integrating them into single customer offerings. Energy efficiency programs focus on reducing energy waste by improving overall energy performance, while demand response programs incentivize customers to reduce or shift power demand at specific times.
We will discuss our new report and related topics at our upcoming National Conference on Energy Efficiency as a Resource next month in Minneapolis. Register today to avoid late fees, which kick in tomorrow.
Growing need for a more flexible grid
As our electric utility system evolves, there is an increasing need for greater flexibility in grid operation. Utilities are relying more on generation from renewable power, primarily wind and solar, with output that varies depending on whether the wind or sun is available at any given time. This continued shift will also come with an increasing number of electric vehicles that creates new power demand.
A recent heat wave in Texas illustrated the need for a more flexible grid. The resulting high demand for power caused electricity prices in wholesale markets to increase more than 100-fold. In a grid without demand flexibility, supply or transmission problems can trigger a spike in market prices.
ACEEE blog, 10 Sep 2019: Missed Opportunity: Few utilities fully integrate energy efficiency and demand response
