Abstract

Energy efficiency (EE) and demand response (DR) resources provide important utility system and ratepayer benefits. At the same time, the rapid change in the amount and type of variable renewable energy, like solar and wind, is reshaping the role and economic value of EE and DR, and will likely affect time-dependent valuation of EE and DR measures. Utilities are increasingly interested in integrating EE and DR measures and technologies (as well as other distributed energy resources) as a strategic approach to improve their collective cost-effectiveness and performance. However, the specific EE and DR features that may be best integrated, the interplay between changing EE and DR resource potential, and the resulting utility system impacts, are not well understood. We develop a framework to identify the EE and DR attributes, system conditions, and technological factors that are likely to drive interactions between EE and DR. We apply the framework to example measures with different technology specifics (e.g., presence of controls, building type, and targeted end use) in the context of different system conditions (e.g., peak demand, load-building periods during high renewable generation output). Ultimately, the framework defines EE and DR interactions not only by the change in discretionary load (i.e., DR potential) but also by the change in likelihood of participation in EE and DR programs—as well as the change in system need for, and the overall availability of, EE and DR resources. The framework is intended to improve the integration of EE and DR in utility operational and planning activities.

Highlights

  • Integrating energy efficiency (EE) and demand response (DR) can drive significant reductions in electricity use and greenhouse gas emissions in the building sector, as well as provide important utility systems and ratepayer benefits

  • We focus on a handful of commonly installed measures with existing technology and attributes that we hypothesize have a broad representation of factors likely to drive interactive effects

  • DR investment; and (2) the change in capability reflects whether and how the building is more or less able to reliably provide a responsive or flexible resource when needed by the utility

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Summary

Introduction

Integrating energy efficiency (EE) and demand response (DR) can drive significant reductions in electricity use and greenhouse gas emissions in the building sector, as well as provide important utility systems and ratepayer benefits. The proliferation of distributed generation (DG) has reduced utility retail sales and changed the timing of net peak demand. The diurnal patterns and volatility of wholesale prices are changing due, in part, to large increases in utility-scale renewable generation resources with zero marginal costs [11]. These changes will likely affect the time-dependent valuation of EE and DR measures [12].

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