The California Duck Curve reveals a potential costly issue for utilities and their customers. The annual peak load appears to be continuing to grow -- because it occurs after dark when there is no solar power being generated -- yet energy sales may be declining with the growth of distributed solar generation during the day. This results in the need to continue to expand the grid, but without the sales revenue to support the added capital expense, presenting a Catch-22 that utilities are struggling to overcome.
This blog was co-authored by Enbala and the Rocky Mountain Institute (RMI). Enbala extends its heartfelt thanks to the Institute for the insights and effort that went into creating this piece.
Demand flexibility - allowing household devices like HVAC systems and smart appliances to interact with the electric grid in response to real-time price changes - can save customers money and lower the overall cost of electricity. The Rocky Mountain Institute's recent paper, The Economics of Demand Flexibility, analyzed the economics of making common household loads controllable and responsive to electricity price signals. The Institute found that just making two devices flexible, i.e., smart thermostats that could flex an HVAC system’s output up or down by 2 degrees and smart water heaters that could change the timing of water heating, could lower system-wide peak demand by eight percent and save $10–15 billion in costs to the grid annually.
Topics: DERs, DERMs, demand flexibility, Distributed energy resource management, demand management, battery storage, Solar energy, distributed energy, peak load management, Rocky Mountain Institute, Symphony by Enbala
Raise your hand if you’re a utility professional or grid operator planning to make some significant infrastructure investments in the next few years. You won’t be alone.
After all, energy infrastructure in the U.S. earns a D+ from the American Society of Civil Engineers (ASCE). If you went to the ASCE report card, you’d see some mighty big numbers associated with the transmission and distribution spending that will likely be needed by 2020 to fill the investment gap, which is the difference between what’s needed and what’s planned.