Demand Response in U.S. Electricity Markets: Empirical Evidence

Date Published
04/2010
Publication Type
Journal Article
Authors
DOI
https://doi.org/10.1016/j.energy.2009.06.029
LBL Report Number
LBNL-2124E
Abstract

Empirical evidence concerning demand response (DR) resources is needed in order to establish baseline conditions, develop standardized methods to assess DR availability and performance, and to build confidence among policymakers, utilities, system operators, and stakeholders that DR resources do offer a viable, cost-effective alternative to supplyside investments. This paper summarizes the existing contribution of DR resources in U.S. electric power markets. In 2008, customers enrolled in existing wholesale and retail DR programs were capable of providing ~38,000 MW of potential peak load reductions in the United States. Participants in organized wholesale market DR programs, though, have historically overestimated their likely performance during declared curtailments events, but appear to be getting better as they and their agents gain experience. In places with less developed organized wholesale market DR programs, utilities are learning how to create more flexible DR resources by adapting legacy load management programs to fit into existing wholesale market constructs. Overall, the development of open and organized wholesale markets coupled with direct policy support by the Federal Energy Regulatory Commission has facilitated new entry by curtailment service providers, which has likely expanded the demand response industry and led to product and service innovation.

Journal
Energy
Volume
35
Year of Publication
2010
Issue
4
Pagination
1526-1535
Publisher
LBNL
Place Published
Berkeley
URL
Refereed Designation
Unknown
Keywords
Organizations
Research Areas
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