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 used this approach with the former Demand Exchange™ program. This Web-based system 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.

New utility funding opportunity from BPA

BPA has partnered with utility customers for residential demand response pilot projects in the past and now is looking to expand support for such projects. The agency is particularly interested in projects that either a) expand the base of technologies that have previously been tested elsewhere, or b) promote learning in a new area of demand response. BPA envisions playing a key role in sharing learnings from pilots and other demonstrations to foster growth of this resource in the region. To accomplish this, BPA will fund utility-operated residential demand response pilot project(s). BPA has issued a Funding Opportunity Announcement for utility customers who are interested in participating in these pilot projects. Learn more about this funding opportunity.

BPA pilot projects

The Residential Direct Load Controlpilot is being conducted with Kootenai Electric Cooperative. The Peak Project in being conducted in 2010 with up to 400 residential consumers in northern Idaho. 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)