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 13, 2019
Coaching pays off for new managers
Study finds increased engagement and readiness for new roles.
Codes and Standards | Aug 12, 2019
New curtain wall design guidelines released
AAMA document includes mandatory language, optional language, and detailed technical commentary.
Codes and Standards | Aug 9, 2019
Cities modify density zoning to spur more affordable housing projects
Solutions include eliminating single-family zoning and allowing taller apartments in higher-density zones.
Codes and Standards | Aug 8, 2019
More designers focusing on acoustic properties of buildings
Recognition that structures should be acoustically satisfying.
Codes and Standards | Aug 7, 2019
Illinois law makes all single-occupancy restrooms gender-neutral
All must comply by January 1.
Codes and Standards | Aug 6, 2019
New technology, aligning training with local trends among keys to workforce development
Construction industry must also invest in training, recruiting high school students.
Codes and Standards | Aug 1, 2019
Planners, city official rethink parking requirements on new projects
Reducing number of parking spots frees up land for ‘more purposeful’ uses.
Codes and Standards | Jul 31, 2019
USGBC-LA chooses first ‘Net Zero Accelerator’ technologies
Wide range of solutions address numerous environmental challenges.
Codes and Standards | Jul 30, 2019
Solar brokerage will provide financing for small/medium businesses
First to fund solar for smaller-scale commercial operations.
Codes and Standards | Jul 29, 2019
ASCE group unveils structural safety database
Confidential reporting on structural failures, near misses, and other incidents.