Demand response in the US electricity market

• 11 years ago (2013-03-09)
• David Flin

North America 1021

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Demand response in the USA has grown to a point where it can potentially meet about 9.2 per cent (72,000 MW) of national peak demand, a growth of 22 per cent from 2010, according to the annual demand response survey conducted by the Federal Energy Regulatory Commission (FERC). FERC said that in the coming years, with the overall electricity grid becoming “smarter”, a number of demand response programs can be integrated, which will further assist in realising the full potential for peak reductions.

According to the latest FERC report, the commercial and industrial category has shown the largest increase in demand reduction potential – 31 per cent compared to about 26 per cent increase by the wholesale markets and a less than 13 per cent increase by the residential markets. Within the wholesale markets, the PJM Interconnection, LLC, and the Midwest Independent Transmission System Operator have shown the biggest potential with an increased of demand response resources.

Out of the eight North American Electric Reliability Council (NERC) regions, the Reliability First Corporation (RFC) has reported a potential peak reduction of 25,000 MW. Only one region, the Northeast Power Coordinating Council (NPCC), has reported a 40 per cent decline in peak reduction potential, mainly because of a significant decline in the ability of its participants, especially those operating in the state of New York.

The largest number of programs have been introduced under “direct load control”, and more are expected to be released between now and 2017. Direct load control programs are largely offered to residential and small commercial customers, and involve a remote shut down of the customer’s electrical equipment by the program sponsor.