The future of demand side management has been an issue explored at New York Energy Week since the early days. Last year’s conversation centered around how customers value these technologies and what they’re willing to pay for them. This year, we’re going to once again dive into this timely and important topic.
A critical component of the future of our energy consumption rests with innovations in demand side management (DSM). Long-term cooperation between governments, utilities, corporations, and individuals will help foster in a smarter grid that can more effectively integrate and manage energy demand and cleaner sources of power. And this nexus of collaboration and innovation will gradually build a smarter, more resilient, more efficient energy grid, promoting long-term benefits for energy generation and the environment.
Demand-side management consists of interconnected programs and technologies that are designed to promote energy efficiency and conservation, leading to reduced energy demand. Two main levers to improve DSM include energy efficient technologies and load shifting. Energy efficiency technologies provide the same level of service while reducing the amount of energy consumed, often reducing costs as well. Load shifting switches generation capacity from one grid to another, effectively flattening the load curve, resulting in fewer blackouts, over-voltages, and under-voltages.
Credit: smartgrid.gov
These approaches are quickly gaining traction across the country. The Hawaiian Electric Co. is seeking $340 million for the Smart Grid Foundation Project, hoping to make its grid more autonomous and energy efficient. The upgrades would allow for the utility to use more renewable energy sources and give customers more control over their energy usage. Nest recently announced that it was expanding its providing of smart thermostats to 50 additional energy providers, offering rebates and rewards to customers who purchase the device. The Nest Thermostat rebate or the Rush Hour Rewards program, Nest’s demand response service, is now available to over 30% of homes in the United States. In all, as of 2014, over 50 million smart meters have already been installed in U.S. homes.
The benefits of continued investments in demand side management are profound. A 2009 McKinsey study estimates that DSM could generate $59 billion in societal benefits by 2019. These include reduced costs for residential and commercial customers, increased reliability and efficiency for utilities, and health benefits through the reduction of greenhouse gases.
So join us this year for a fruitful and lively conversation surrounding these issues and their benefits. On June 13, our opening ceremony will center on “Achieving The Next Generation Utility,” with panelists focusing on the uncertainty of the utility business model and some key lessons learned from regulatory and market reforms. We’ll then close New York Energy Week, on June 16, with a session on “The Future of Demand-Side Management,” with a focal point on creating the intelligent building of tomorrow.
The impetus for innovation and increased investment in DSM is clear. The next generation utility is upon us, and all of us stand to benefit. New York Energy Week 2016 is sure to build upon prior conversations around this issue and spark new ideas for demand-side management.
