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Tapping the Untapped Potential of Demand Response Programs

Greater utilization of demand response programs can help utilities meet peak demand without having to build new generating facilities. Utility planners seek to economically address how to reliably and economically meet future peak demand, in the face of upcoming retirements of large power plants that significantly reduce any peak reduction related benefits associated with the current low load growth levels faced by our industry.

Recently, the American Council for an Energy Efficient Economy released an updated analysis of demand response programs. Below are excerpts and links to the ACEEE report:

ACEEE looked at energy efficiency and demand response savings data for 2015 (the most recent year available) collected by the EIA, a branch of the U.S. Department of Energy.

Actual peak demand savings are demand reductions achieved by demand response activities, measured at the time of the company’s annual system peak hour. Actual savings address the fact that many utilities did not activate all demand response capability in 2015.

ACEEE looked at all utilities that reported potential demand response savings of 200 MW or more, a total of 28 utilities. These 28 utilities represent 64% of the potential demand response savings reported to EIA, and 58% of the actual reductions reported to EIA. The ACEEE summary for the 28 utilities is at this link, and the full ACEEE report on Demand Response is at this link, and their related analysis of energy-efficiency programs is at this link.

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