Category Archives: Demand Response

Demand Response: A Valuable Tool that Can Help California Realize its Clean Energy Potential

rp_Cover-photo-image-300x200.jpgA tool only has value if it’s used. For example, you could be the sort of person who’s set a goal of wanting to exercise more. If someone gives you a nifty little Fitbit to help you do that, and you never open the box, how useful, then, is this little device? The same is true about smart energy management solutions: good tools exist, but whether it’s calories or energy use that you want to cut, at some point those helpful devices need to be unpacked. The same is true for demand response, an energy conservation tool that pays people to save energy when the electric grid is stressed.

California's electricity industry stands at a crossroads. The state got an early start on creating laws and policies to cut carbon pollution, and is now reaping the benefits of these policies through reduced emissions and healthy economic growth. That said, California can’t cut carbon emissions and reduce its reliance on fossil fuels without having alternatives to choose from — some focusing on promoting renewable energy, others on smarter energy management tools. Demand response is one of these tools, and a critical one. This highly-flexible, cost-effective resource should play a key role in California’s clean energy future, but several barriers stand in the way of unleashing its full potential.

It’s hard to think of California as anything but forward-thinking, but, right now, the state’s demand response programs are lagging behind those in other states and regions of the country like the Mid-Atlantic. There is good news, however, because demand response is an evolving resource. And, with advances in smart grid technologies, demand response has the potential to improve our energy mix in California. In EDF’s new report, Putting Demand Response to Work for California, we offer recommendations on how to unlock demand response as an important part of the overall strategy for California’s bright energy future.

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Another Step Forward for Demand Response, FERC Order 745 Case

supreme-court-544218_640Over the past several months, we’ve been providing updates on the ongoing litigation surrounding Order 745 – a vital, federal rule on demand response. As a low-cost, environmentally beneficial resource, demand response relies on people and technology, not power plants, to manage stress on the electric grid during periods of peak energy demand. Simply put, demand response pays people to conserve energy when it matters most – a win-win for people and the environment.

But this critical energy management tool has also been subject to an amazing amount of scrutiny (which we’ve covered here, here, and yes, here, as well). In short, the thorny issue boils down to this: a recent court decision found that the federal agency responsible for regulating demand response didn’t have the authority to do so.

When the decision came down, many were shocked. The general assumption had been that this agency (known as the Federal Energy Regulatory Commission or “FERC”) certainly was within its rights to issue Order 745, a set of rules for how demand response would function in our nation’s energy markets.

And last week, the United States Solicitor General sided with the “general consensus” on Order 745. Read More »

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2014: A Positive Sign of What’s to come for Clean Energy

Photo by DAVID ILIFF. License: CC-BY-SA 3.0The New Year is a time for reflection, beginning with a look back on the previous 12 months and all that they brought. A quick scan of the U.S. climate and energy news in 2014 will tell you it was a very big year.

The Environmental Protection Agency (EPA) proposed the first-ever limits on carbon pollution from power plants, the U.S. and China struck a historic climate deal, and Tesla broke ground in Nevada on the largest advanced automotive-battery factory in the world – a  move that’s expected to slash the cost of lithium ion batteries by a third. At the same time that these important national and international advancements were grabbing headlines, Environmental Defense Fund (EDF) and our partners were working together to incrementally transform the U.S. electricity system by rewriting outdated regulations, spurring energy services markets, and modernizing our century-old electric grid.

The U.S. is on the verge of a revolution in the way we make, move, and use energy. And, having spent years working on governmental and regulatory matters related to our power system and lessening its impact on the environment, I can honestly say there has never been a more exciting time to be in this field. Here are a few of the moments that were near and dear to our hearts over the past year, developments I see as a sure signal 2015 will be another epic year for clean energy. Read More »

Also posted in Clean Energy, Energy Efficiency, Energy Financing, Energy Storage, Illinois, Investor Confidence Project, New Jersey, New York, Renewable Energy, Smart Grid, Texas, Utility Business Models| Comments closed

Exploring U.S. Seniors’ Perspective Toward the Smart Grid

By: Patty Durand, Smart Grid Consumer Collaborative Executive Director

Durand headshotUnderstanding customers’ attitudes, viewpoints, and overall favorability around a modernized electric grid is integral to fully realizing all the benefits the smart grid has to offer.

Smart Grid Consumer Collaborative (SGCC) recently completed a new consumer analysis, Consumer Pulse: Focus on Seniors, which takes a deeper dive into the data collected from SGCC’s national flagship research series, Consumer Pulse Wave 1-4, which was collected during 2011–2013.

In the energy industry, there is no single study that explores seniors’ attitudes toward the smart grid and energy programs. Therefore, this new analysis provides insight for utilities and the smart grid stakeholder community on a demographic that is not well understood. Further, the Consumer Pulse: Focus on Seniors report answers the key question: What benefits do older Americans value most from a smarter grid? Read More »

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Utility 2.0: What are Utilities Doing to Meet New York’s Vision for a 21st Century Energy System?

nyc skylineSince the New York Public Service Commission (Commission) opened its Reforming the Energy Vision (REV) proceeding in the spring to modernize the state’s electricity system, a lot has happened. Namely, New York utilities are already working to align themselves with the broad objectives outlined in the REV proceeding. Here is an overview of efforts by the state’s big players:

CON EDISON – Brooklyn/Queens Demand Management Program

Growth in electricity demand in parts of Brooklyn and Queens is taxing infrastructure and will require action from Con Edison to ensure reliability. Con Edison could pursue a costly $1 billion substation upgrade to meet this rising demand. Instead, the utility is slashing needed investment by half and plans to invest around $500 million – $305 million in traditional utility investments and $200 million clean energy resources – to address the area’s growing energy needs as part of its Brooklyn/Queens Demand Management program. Measures include:

  • Demand Response (a tool that pays customers to conserve energy when the electric grid is stressed): A new demand response system from energy services provider Alstom, which would allow 3.3 million customers to be compensated for the value they provide to the grid.
  • Energy Storage: Battery-based energy storage for electricity produced when electricity demand is low (off-peak hours) for use when demand is high (peak periods), easing the burden on the electric grid at those times.
  • Microgrids (which generate electricity nearby or on-site where it’s consumed): The development of microgrids to improve resiliency and enable the aforementioned demand response system.
  • Electric Grid Resilience and Optimization: Expanded use of smart meters, which provide detailed electricity use data throughout the day, will improve response time to power outages and give customers more control over their energy usage.

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New Development in Demand Response Ruling Signals Possible Supreme Court Review

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UPDATE: Yesterday, January 15th, 2015, the Solicitor General formally asked the Supreme Court to review the demand response case, EPSA v. FERC. This action is a welcome step by the Solicitor General. Now the Supreme Court must decide whether or not to hear this important case.


 

Late last week, the Solicitor General signaled its intention to file cert. before the Supreme Court in the demand response Order 745 case, EPSA v. FERC. Hidden within this legalese is an important update about a significant (and already complex) case.

So what does it all mean?

First, a bit of background

Demand response pays customers to conserve energy when the electric grid is stressed. With demand response, people and technology, not power plants, help meet energy demand. This is good news for customers, who pay less for electricity, the environment, via reductions in harmful air emissions, and the electric grid, by making it more efficient.

The Federal Energy Regulatory Commission (FERC), tasked with ensuring our nation’s wholesale electricity rates are ‘just and reasonable,’ created Order 745 to ensure that those providing demand response as a service would be adequately compensated. Read More »

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