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Bonneville Power Administration
http://www.bpa.gov
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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 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)
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Page last modified on Monday August 09, 2010.
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