Demand Response Progress and Challenges

Lynne Kiesling

Still here … but have been utterly crushed with work. It is only courtesy of a flight delay at O’Hare that I am writing now.

I am headed to Cambridge, Massachusetts, to give a talk at the MIT Center for Energy and Environmental Policy Research annual conference. My presentation focuses on demand response in electric power, a topic near and dear to my heart.

My plan is to show the theoretical framework that tells us how and why double-sided markets with active demand participation is superior to the supply-focused electricity reality, then highlight some recent research and retail pilot programs. The results of these programs all indicate that, while demand is inelastic, it is still downward sloping, and that the elasticity is sufficient to shift enough demand away from peak to contribute to lower prices and better system reliability. How cool is that?

That’s why I call demand response the Swiss Army Knife of electricity policy; it’s a parsimonious, multi-function tool that provides adaptability and flexibility to a rigid system that desperately needs it.


5 thoughts on “Demand Response Progress and Challenges

  1. lynne

    i borrowed your presentation…i am going to use it with my colleagues…with all due attribution…

    thanks

    bob

  2. Good info – I can’t believe I actually found someone blogging about DR – one of our more interesting enabling technologies is the Energy Orb – it glows different colors to indicate when Critical Peak is coming (based on day ahead forecast) and actually improved price responsiveness for residenttial and small commercial customers in the California SPP by doubling the hourly load impacts (very small sample).

    Check out the report under Group 3, as the Information Display Pilot, at

    http://www.energy.ca.gov/demandresponse/documents/

  3. Good info – I can’t believe I actually found someone blogging about DR – one of our more interesting enabling technologies is the Energy Orb – it glows different colors to indicate when Critical Peak is coming (based on day ahead forecast) and actually improved price responsiveness for residenttial and small commercial customers in the California SPP by doubling the hourly load impacts (very small sample).

    Check out the report under Group 3, as the Information Display Pilot, at

    http://www.energy.ca.gov/demandresponse/documents/

  4. Good info – I can’t believe I actually found someone blogging about DR – one of our more interesting enabling technologies is the Energy Orb – it glows different colors to indicate when Critical Peak is coming (based on day ahead forecast) and actually improved price responsiveness for residenttial and small commercial customers in the California SPP by doubling the hourly load impacts (very small sample).

    Check out the report under Group 3, as the Information Display Pilot, at

    http://www.energy.ca.gov/demandresponse/documents/

  5. Good info – I can’t believe I actually found someone blogging about DR – one of our more interesting enabling technologies is the Energy Orb – it glows different colors to indicate when Critical Peak is coming (based on day ahead forecast) and actually improved price responsiveness for residenttial and small commercial customers in the California SPP by doubling the hourly load impacts (very small sample).

    Check out the report under Group 3, as the Information Display Pilot, at

    http://www.energy.ca.gov/demandresponse/documents/

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