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
| Oct 28, 2011
OSHA requires training module on top causes of construction deaths
The Occupational Health and Safety Administration (OSHA) now requires a training module on the top four causes of death for construction workers.
| Oct 28, 2011
New York City requiring building energy use to be posted online
Owners of every New York City commercial and residential building larger than 50,000 sf will have to post each building’s energy use online by 2013.
| Oct 28, 2011
New ISO standard for escalator safety
A new ISO standard specifies safety requirements for escalators and moving walks.
| Oct 20, 2011
LEED 2012 to require real-time energy, water use reporting
The LEED 2012 rating system, set to launch in November 2012, will contain features to make sure buildings function as intended, and improve over time.
| Oct 20, 2011
New York City moving to speedier, online design reviews
New York City is moving towards a development design review process that will let officials and developers review blueprints for new projects online in a virtual conference room rather than in person.
| Oct 20, 2011
Michigan bill would let private firms operate as a city’s building department
Michigan House Bill 5011 would change state’s building code to allow private companies to operate as a municipality's building department.
| Oct 20, 2011
Alabama’s strict immigration law drives away construction workers
Alabama's strict new immigration law is driving many construction workers and roofers from the state.
| Oct 20, 2011
Fed bill would allow school rehab funding via historic tax credits
Virginia Sens. Jim Webb (D) and Mark Warner (D) introduced a bill this month to rehab aging schools across the country through the use of historic tax credits.
| Oct 20, 2011
Process leads to new design values for southern pine and other visually graded dimension lumber
A summary of the process used to develop new design values will clarify many of the questions received by the SFPA.
| Oct 19, 2011
Another drop for Architecture Billings Index
Positive conditions seen last month were more of an aberration.