The Economics Of Demand Flexibility

How “flexiwatts” can reduce customer bills and lower grid costs.

Electric utilities typically focus on supply-side solutions, to meet:
. . . . . . Peak demand,
. . . . . . Balance electric loads, and
. . . . . . Meet customer needs.
Because demand is assumed to be static.

The grid will need an estimated,
. . . $1.5 trillion in investment between now and 2030,
. . . largely to meet forecasts for ongoing:
. . . . . . Generation,
. . . . . . Transmission, and
. . . . . . Distribution needs.
. . . That translates to $50–80 billion dollars every year.

But a much cheaper approach,
. . . is to make not just supply,
. . . but also demand highly flexible, and
. . . responsive to price signals. (called Demand Flexibility)

Customers are realizing vastly increasing choices in how, and
. . . when they purchase, and consume electricity:
. . . . . . Buy electricity from the grid,
. . . . . . Generate it themselves with distributed generation,
. . . . . . Avoid it with efficiency, or
. . . . . . Shift it with Demand Flexibility.

08-26-2015 Source:  The Economics of Demand Flexibility