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 30, 2021
Facebook’s new $800 million Arizona data center to save big on water
Will restore more than 200 million gallons of water per year to river basins.
Codes and Standards | Aug 26, 2021
California may require solar on new high-rise residential and commercial buildings
State energy commission approves proposal; Could become law in 2023.
Codes and Standards | Aug 25, 2021
Study finds racism, discrimination common in construction industry
NIBS to share best practices with industry leaders to improve worker treatment.
Codes and Standards | Aug 24, 2021
White paper addresses insulated metal panel specifications for roofs and walls
Pertains to provisions of the National Building Code of Canada.
Codes and Standards | Aug 24, 2021
KTGY releases free resource to reduce carbon footprint in multifamily developments
Helps navigate Denver Green Code measures—a series of voluntary codes.
Codes and Standards | Aug 19, 2021
Massive infrastructure bill includes hundreds of millions for building energy efficiency
Funds allotted for updated code implementation, construction technology, K-12 efficiency programs.
Codes and Standards | Aug 18, 2021
Fannie Mae green bonds program could be greenwashing
Analysis shows significant number of green bond properties become less efficient.
Codes and Standards | Aug 17, 2021
Three Texas cities head list of most environmentally vulnerable
Hazard analysis includes natural disasters and government response categories.
Codes and Standards | Aug 16, 2021
Bill would reform New York’s public contracting process
Council on Public Contracting Reform to have contractor representation.
Codes and Standards | Aug 12, 2021
AGC pushes for more environmentally friendly construction
Contractor trade group supports government investment, tax incentives to reduce carbon footprints.