With rising peak demand for electricity in many regions of the country, utilities and states are increasingly interested in understanding how efficiency programs contribute toward electricity system reliability and resilience at the most affordable cost. According to a new study by Berkeley Lab, these programs appear to be a relatively low-cost way for utilities to meet peak demand, compared to the capital cost of other resources.

A free webinar summarizing key findings will be offered at noon Pacific on November 14, 2019, in collaboration with the National Association of Regulatory Utility Commissioners Center for Partnerships & Innovation. Register for the free webinar here. The report, Peak Demand Impacts From Electricity Efficiency Programs, will be available in advance of the webinar at 
https://emp.lbl.gov/publications/peak-demand-impacts-electricity.

Historically, most assessments of efficiency's costs and benefits focused on the value of annual energy reductions. With increasing need for a more flexible and resilient electricity system, and relative costs for generation, utilities and other efficiency program administrators must take into account all characteristics of efficiency programs - including peak demand reduction - to ensure a reliable system at the most affordable cost. 

As a first of its kind analysis, Berkeley Lab's innovative study explores a new metric for utilities and other efficiency program administrators, the cost of saving peak demand. Researchers collected data on costs, energy savings, and peak demand savings for programs serving customers of 36 investor-owned utilities in nine states (Arizona, Arkansas, California, Colorado, Illinois, Massachusetts, Maryland, New York and Texas) for the period 2014 to 2017. The report presents the cost to the utilities for each state and for specific types of programs. 

Berkeley Lab | emp.lbl.gov