At least 13 states have developed performance incentive mechanisms (PIMs) to encourage utilities to deliver energy savings at specific times to optimize the nation’s power grid, according to a report by the American Council for an Energy Efficient Economy (ACEEE).
“Energy efficiency and demand response are essential tools to drive down the cost and greenhouse gas (GHG) emissions of electricity systems affordably and rapidly,” according to ACEEE. “These services can reduce demand at specific times to optimize the power grid, which we call ‘strategic demand reduction’ (SDR).”
Utilities are just beginning to integrate SDR into their grid planning, investments, and operations. Studies indicate that demand flexibility and energy efficiency hold “vast untapped potential,” ACEEE says.
States are using varied approaches on PIMs. Some states use traditional utility procurement approaches to peak demand reduction, such as in Hawaii and Texas. Massachusetts and New York use newer methods of encouraging SDR by compensating utilities for a mix of actions and outcomes. States show increasing interest in moving demand from one time of day to another and in grid-balancing measures that target times when renewables create steep ramps in available supply.
Related Stories
Codes and Standards | Aug 16, 2018
Nearly a quarter of opioid overdose deaths attributable to construction workers
Massachusetts public health study finds pressure to work in pain contributes to problem.
Codes and Standards | Aug 15, 2018
ICC creates new committee on building safety and security
Will include experts from many different disciplines.
Codes and Standards | Aug 14, 2018
Philadelphia adopts 2018 IECC energy code, while state opts for 2015 code
City is one of the first jurisdictions to adopt newest code.
Codes and Standards | Aug 9, 2018
Denver’s goal of 100% renewable energy by 2030 includes net zero energy buildings
Community solar programs for low income residents part of plan.
Codes and Standards | Aug 8, 2018
Too much parking in U.S. cities proving costly
As car ownership rates drop, excess parking seems more wasteful.
Codes and Standards | Aug 7, 2018
International Fire Safety Standards (IFSS) Coalition created
Professional associations and building standards organizations join forces.
Codes and Standards | Jul 31, 2018
Workers allegedly held in captivity by construction subcontractor in San Jose pay theft case
Contractor pays $250,000 in back wages in Dept. of Labor enforcement action.
Codes and Standards | Jul 17, 2018
Heat island effect can turn deadly in extreme conditions
Of all the impacts of global climate change, it’s extreme heat that kills more Americans each year than any other weather-related event.
Codes and Standards | Jul 17, 2018
NIMBYism, generational divide threaten plan for net-zero village in St. Paul, Minn.
The ambitious redevelopment proposal for a former Ford automotive plant creates tension.
Codes and Standards | Jul 17, 2018
In many markets, green features are more of a requirement for apartment renters
Renters in many U.S. cities have come to expect green features in apartments that they rent, with an eye toward energy efficiency and healthy indoor air.