Fact Sheets

The Role of Storage and Demand Response. English (PDF).

Demand Response and Storage Folder

Energy Storage Requirements for Achieving 50% Solar Photovoltaic Energy Penetration in California

May 21, 2018 · Link

This report estimates the storage required to enable PV penetration up to 50% in California (with renewable penetration over 66%), and quantifies the complex relationships among storage, PV penetration, grid flexibility, and PV costs due to increased curtailment. The authors find that storage needs depend strongly on the amount of other flexibility resources deployed. With very low-cost PV (three cents per kilowatt-hour) and a highly flexible electric power system, about 19 gigawatts of energy storage could enable 50% PV penetration with a marginal net PV levelized cost of energy (LCOE) comparable to the variable costs of future combined-cycle gas generators under carbon constraints.

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2013 Assessment of Demand Response and Advanced Metering: Staff Report

May 21, 2018 · Link

This is the 8th annual report from the United States Department of Energy’s Federal Energy Regulatory Commission (FERC) on demand response and advanced metering in the United States, based on publicly available information and interviews with market participants and industry partners. The assessment reviews penetration rates of advanced metering and communications technologies; existing demand response and time-based rate programs; annual resource contributions from demand resources; the potential for demand response as a quantifiable, reliable resource for regional planning; steps that have been taken in regional transmission planning and operations to ensure demand resources are provided equitable treatment as a quantifiable, reliable resource; and regulatory barriers to improved customer participation in demand response programs.

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Market and Policy Barriers to Energy Storage Deployment

May 21, 2018 · Link

This report details the barriers that restrict the deployment of energy storage technologies in the United States. The findings are based on interviews with stakeholders and review of regulatory filings in four regions roughly representative of the country. The report suggests that while high capital costs remain a barrier to energy storage, deployment is also impacted by regulatory, market (economic), utility and developer business model, cross-cutting, and technology barriers.

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Pacific Gas & Electric Company (PG&E) SmartRate: Product Design Converges on Customer Experience

May 21, 2018 · Link

This case study is based on interviews with PG&E (a California utility) and explores the institutional circumstances surrounding the implementation of PG&E’s SmartRate™ dynamic rate program. The case study focuses on implementation and procedural challenges, reactions and perceptions of stakeholders involved, and lessons learned. The case study is not intended to evaluate the program but offers insight into the internal workings, attitudes, and relationships of a utility successfully implementing a demand response program.

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Rate Design Where Advanced Metering Infrastructure Has Not Been Fully Deployed

May 21, 2018 · Link

This paper focuses on foundational rate design principles that are typically associated with conventional meters. Despite growing deployment of smart meters, most electricity customers are served by conventional meters. The wide variety of pricing practices discussed in this paper highlight global case studies that have exhibited the ability to enable system operators to send price signals that alter retail customer behavior, affect needed capital improvements, and influence a utility’s capital investments.

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Market and Policy Barriers for Demand Response Providing Ancillary Services in U.S. Markets

May 21, 2018 · Link

This report provides a comprehensive examination of market and policy barriers that hinder the use of demand response resources to provide bulk power system services (including ancillary services) in U.S. energy markets. The report introduces a typology that identifies barriers (e.g., bulk power system service definitions, revenue availability) according the relevant power system entities (e.g., balancing area authorities, investor-owned utilities, end-use consumers) that are responsible for and/or affected by the barrier. It also identifies actions required to overcome each barrier. In order to illustrate the differences in and approaches to addressing barriers among various wholesale and retail market designs, four regions are explored as case studies: Colorado, Texas, Wisconsin, and New Jersey.

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Effective Mechanisms to Increase the Use of Demand Side Resources

May 21, 2018 · Link

This report provides policymakers with a detailed look at a fourteen regulatory, policy, market-based, and load-targeting mechanisms that are emerging as effective practices for increasing the use of demand side resources. Based on research in several countries, the highlighted mechanisms—some aimed at vertically-integrated power sectors, some at liberalized market systems, and some at both—are designed to break down the economic and institutional barriers to investment in clean energy resources on the customer’s side of the meter. Specific suggestions include mandating time-varying pricing structure, encouraging implementation of demand side management technologies through incentives and mandates, and enabling financing mechanisms and markets for development of these systems, all as a part of guiding the transformation toward improved demand side management in the power system.

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Mass Market Demand Response and Variable Generation Integration Issues: A Scoping Study

May 21, 2018 · Link

This report examines how demand side resources could be used to facilitate the integration of wind and solar resources into the bulk power system, identifies barriers that currently limit the use of demand response, and suggests factors that can assist decision makers in assessing alternative strategies for integrating wind and solar resources in the bulk power system. The study examines the role of the widespread deployment of Advanced Metering Infrastructure and smart grid systems to mass-market customers in managing the integration of variable RE, primarily in the context of United States power systems. It also assesses how market and regulatory practices can be modified to better enable demand response technologies to facilitate variable RE integration.

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Coordination of Energy Efficiency and Demand Response (National Action Plan for Energy Efficiency 2010)

May 21, 2018 · Link

This paper summarizes existing research on the relationship between energy efficiency and demand response. Energy efficiency measures and rate design can impact investments towards demand response measures (and vice versa). Using information gathered through interviews with program administrators, customers, and service providers, this paper suggests four ways to coordinate energy efficiency and demand response programs (combining program offerings, coordinating program marketing and education, enabling market-driven coordinated services, and developing building codes and appliance standards) and also discusses barriers and opportunities to facilitate coordination.

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Demand Response and Energy Efficiency Roadmap: Maximizing Preferred Resources

May 21, 2018 · Link

The California Independent System Operator (ISO) is working with other stakeholders (including the California Public Utilities Commission and the California Energy Commission) to create a market for demand response and energy efficiency and to harmonize these resources with transmission planning and system operations. This Roadmap outlines activities and milestones for four interdependent paths (demand reshaping, operations, resource sufficiency, and monitoring) necessary to bring greater demand response and energy efficiency capacity to the system through 2020.

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FERC Order 784: Third-Party Provision of Ancillary Services; Accounting and Financial Reporting for New Electric Storage Technologies

May 21, 2018 · Link

FERC Order 784 is a final rule from the United States Department of Energy’s Federal Energy Regulatory Commission (FERC) that outlines revisions to its regulations to foster competition and transparency in ancillary services markets. The revision affects market-based rate regulations, ancillary services requirements under the pro forma open-access transmission tariff (OATT), and accounting and reporting requirements. The changes proposed also modify the accounting regulations to increase transparency for energy storage facilities.

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FERC Order 719: Policy on Demand Response

May 21, 2018 · Link

FERC Order 719 is a final rule from the United States Department of Energy’s Federal Energy Regulatory Commission (FERC) that details the amendments in the Federal Power Act regulations to improve the operation of organized wholesale markets in the areas of demand response, long-term power contracting, market monitoring policies, and responsiveness of regional transmission operators (RTOs) and independent transmission operators (ISOs). The order includes rules initially created in the US to enable bidding of demand response into electricity markets (RTOs’ and ISOs’ markets) as well as to permit aggregated bidding of demand response resources in organized energy markets.

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Xcel CO Model PPA Semi-Dispatchable Resources 2017

Sep 12, 2018 · File

Xcel Energy's model PPA for 'semi-dispatchable' resources, which are defined as intermittent generators combined with some form of technologies which mitigates intermittency issues (such as concentrated solar generators and thermal storage or solar photovoltaic with battery storage). The PPA outlines requirements concerning telemetry, ancillary services, forecasting and more.

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Demand Response Compensation Methodologies: Case Studies for Mexico

Oct 10, 2018 · Link

This report examines various compensation methodologies for demand response programs in Mexico. Demand response (DR) can refer to a variety of approaches to changing the amount and timing of customers' electricity use, allowing the electricity supplier to more easily balance electricity supply and demand. The level of compensation for a DR program will depend greatly upon both the regulatory context of the electricity supplier, as well as the economic circumstances of the DR providers. This report presents three case studies, including New England, California, and Hawaii.

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