Demand Response Meets Peak Demand By Empowering Consumers With Innovation

Three of the nation’s largest grid operators are forecasting adequate power supply for the high summer peak season due in large part to consumer participation in innovative demand response programs.

PJM Interconnection expects consumers will play a significant role in reducing this summer’s peak demand by six percent, or 8,525 megawatts –the equivalent of 10 large power plants. PJM, the regional transmission organization operating in 13 states and the District of Columbia, forecasts a peak demand of 135,750 megawatts this summer.

In ISO-New England (ISO-NE), which serves the six New England states, the region’s power grid expects 1,330 megawatts of demand response to help mitigate summer power use peaks. The ISO-NE credits demand-side resources as playing an important role in managing electricity consumption if supplies get tight, with a total of 32,670 megawatts of capacity available. The Midwest ISO (MISO) announced a healthy reserve margin of 3,387 megawatts of demand response for the summer season. MISO estimates peak demand will reach 104,288 megawatts in the region.

Demand response resources are becoming more popular with consumers in organized competitive markets as they demonstrate tangible benefits, while grid operators see them as an increasingly valuable contributor to grid reliability.

One such resource, Constellation NewEnergy’s VirtuWatt program, empowers customers to take a larger role in energy management. By tracking real-time energy usage, trends and market prices, customers get the control they need to make smart energy decisions.

New technologies like demand response help meet energy demand and low-carbon environmental goals, while keeping consumer costs down. Competitive markets are driving these and other innovative solutions needed to meet America’s electricity needs and environmental objectives.

Joel Malina | May 11, 2010