

Are utilities ready to fully harness demand flexibility? [partner content]
Feb 4, 2025
Utilities are at a crossroads, shifting from merely selling energy to embracing demand flexibility. This crucial change can stabilize grids powered by intermittent renewables but requires innovative rate designs and effective customer incentives. The aftermath of Winter Storm Uri has highlighted the need for adaptable pricing strategies and technology integration like IoT and AI. As utilities seek to achieve decarbonization goals, understanding diverse customer needs, particularly low-income households, will be vital for equitable energy management.
AI Snips
Chapters
Transcript
Episode notes
California Heatwave Success
- During the 2022 California heatwave, Scott Engstrom saw the value of time-varying rates.
- Southern California Edison (SCE) used these rates and emergency alerts, achieving a 75 MW load reduction.
Supply-Side Focus
- Utilities often prioritize supply-side changes in decarbonization plans, focusing on replacing power plants.
- Demand flexibility is harder to measure and understand than the carbon content of generation assets.
Demand Flexibility Crucial for Renewables
- Reaching net-zero goals with intermittent renewables requires predictable demand flexibility.
- Traditional power plants offer controllable supply, unlike renewables dependent on weather.