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Demand Response and BPA



Until recently, BPA has been able to meet peak capacity needs through the flexibility of the hydro system. However, projected load growth and other external forces are pointing to projected peak capacity shortage in the near future. BPA is exploring demand response as one option to meet peak demand.

Demand response uses technology and incentives to change electricity consumption by end-use customers. It can result in a reduction in energy consumption at times of peak use and at times of high wholesale market prices. Demand response offers benefits to both utilities and consumers in the form of increased electric system reliability and reduced price volatility. It uses a wide range of technologies offering a variety of options for both peaking and energy capacities across the electrical system. In the Northwest, demand response also has the potential to help utilities integrate increasing amounts of wind power and renewable energy.

Current and historical BPA demand response projects


Voluntary demand response offers consumers incentives to voluntarily reduce their electric loads at system peaks. BPA has used this approach with the Demand Exchangeâ„¢ program. This Web-based system has allowed BPA to make offers for demand reductions at facilities that have contracts in place. Through the Demand Exchange program, facilities could accept, reject or make counter offers to BPA. The system saved the region $1.9 million during the 2001-2002 power crisis in demonstration mode.

Direct Load Control involves a utility-controlled appliance at a customer site, while Distributed Generation normally involves using back-up generators when those resources are needed. BPA is also a participant in the GridWise Demonstration Project on Washington's Olympic Peninsula, which employs multiple technologies to manage Demand Response.

BPA pilot projects


In 2009 and 2010, BPA is collaborating with utility customers in a series of pilot projects to expand demand response use in the northwest.

The Residential Direct Load Control pilot is being conducted with three utilities. Launching with approximately 1,000 residential consumers in October 2009, the pilot will be used to develop strategies for BPA and utilities to work collaboratively to achieve effective demand response programs in the Northwest.




In 2010, BPA will sponsor a pilot program in large commercial and industrial applications, and a pilot for residential, small commercial and industrial applications. Both pilots will analyze the benefits and costs of implementing a demand response program in specific sectors.

Resources


BPA Energy Efficiency recently released an Assessment of DR Options Report. The report provides a detailed assessment of relevant demand response curtailment options available to BPA. Download the Assessment of DR Options Report here (PDF, 365 KB)




  
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     Page last modified on Tuesday August 18, 2009.