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
Multifamily Housing | Jun 3, 2024
Grassroots groups becoming a force in housing advocacy
A growing movement of grassroots organizing to support new housing construction is having an impact in city halls across the country. Fed up with high housing costs and the commonly hostile reception to new housing proposals, advocacy groups have sprung up in many communities to attend public meetings to speak in support of developments.
MFPRO+ News | Jun 3, 2024
New York’s office to residential conversion program draws interest from 64 owners
New York City’s Office Conversion Accelerator Program has been contacted by the owners of 64 commercial buildings interested in converting their properties to residential use.
MFPRO+ News | Jun 3, 2024
Seattle mayor wants to scale back energy code to spur more housing construction
Seattle’s mayor recently proposed that the city scale back a scheduled revamping of its building energy code to help boost housing production. The proposal would halt an update to the city’s multifamily and commercial building energy code that is scheduled to take effect later this year.
Resiliency | Jun 3, 2024
Houston’s buyout program has prevented flood damage but many more homes at risk
Recent flooding in Houston has increased focus on a 30-year-old program to buy out some of the area’s most vulnerable homes. Storms dropped 23 inches of rain on parts of southeast Texas, leading to thousands of homes being flooded in low-lying neighborhoods around Houston.
Healthcare Facilities | May 28, 2024
Healthcare design: How to improve the parking experience for patients and families
Parking is likely a patient’s—and their families—first and last touch with a healthcare facility. As such, the arrival and departure parking experience can have a profound impact on their experience with the healthcare facility, writes Beth Bryan, PE, PTOE, PTP, STP2, Principal, Project Manager, Walter P Moore.
MFPRO+ News | May 28, 2024
ENERGY STAR NextGen Certification for New Homes and Apartments launched
The U.S. Environmental Protection Agency recently launched ENERGY STAR NextGen Certified Homes and Apartments, a voluntary certification program for new residential buildings. The program will increase national energy and emissions savings by accelerating the building industry’s adoption of advanced, energy-efficient technologies, according to an EPA news release.
Women in Design+Construction | May 28, 2024
Commerce Department launches Million Women in Construction Community Pledge
The U.S. Department of Commerce launched its Million Women in Construction Community Pledge this month to boost the ranks of women in construction companies. Federal investments are creating a construction boom that is increasing job opportunities for construction and trade workers.
HVAC | May 28, 2024
Department of Energy unveils resources for deploying heat pumps in commercial buildings
To accelerate adoption of heat pump technology in commercial buildings, the U.S. Department of Energy is offering resources and guidance for stakeholders. DOE aims to help commercial building owners and operators reduce greenhouse gas emissions and operating costs by increasing the adoption of existing and emerging heat pump technologies.
MFPRO+ News | May 24, 2024
Austin, Texas, outlaws windowless bedrooms
Austin, Texas will no longer allow developers to build windowless bedrooms. For at least two decades, the city had permitted developers to build thousands of windowless bedrooms.
Resiliency | May 24, 2024
As temperatures underground rise, so do risks to commercial buildings
Heat created by underground structures is increasing the risk of damage to buildings, recent studies have found. Basements, train tunnels, sewers, and other underground systems are making the ground around them warmer, which causes soil, sand, clay and silt to shift, settle, contract, and expand.