Avoided cost estimation and cost-effectiveness of permanent load shifting in California

P. Sreedharan; D. Miller; S. Price; Chi-Keung WOO

doi:10.1016/j.apenergy.2011.08.029

Avoided cost estimation and cost-effectiveness of permanent load shifting in California

P. Sreedharan, D. Miller, S. Price, Chi-Keung WOO^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

31 Citations (Scopus)

Abstract

Two intersecting events of the last two decades have transformed the electricity industry: (1) market restructure designed to introduce wholesale market competition; and (2) renewable energy development fostered by government policies, including renewable portfolio standards (RPS). There is, however, little research to answer the question: what is the avoided cost of demand response (DR) in a restructured market with RPS? This paper offers an answer to this question, which is critical for determining the cost-effectiveness of DR and its program design and implementation. We illustrate the answer's usefulness with five real-world examples of permanent load shifting (PLS) in California. These examples show that a PLS system's cost-effectiveness depends on its site-specific characteristics, including location, installation cost and performance, thus affirming the use of a targeted approach to DR design and implementation.

Original language	English
Pages (from-to)	115-121
Number of pages	7
Journal	Applied Energy
Volume	96
DOIs	https://doi.org/10.1016/j.apenergy.2011.08.029
Publication status	Published - Aug 2012

Scopus Subject Areas

Building and Construction
Energy(all)
Mechanical Engineering
Management, Monitoring, Policy and Law

User-Defined Keywords

Avoided cost
Cost-effectiveness
Permanent load shifting
Renewable portfolio standards

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.apenergy.2011.08.029

Cite this

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abstract = "Two intersecting events of the last two decades have transformed the electricity industry: (1) market restructure designed to introduce wholesale market competition; and (2) renewable energy development fostered by government policies, including renewable portfolio standards (RPS). There is, however, little research to answer the question: what is the avoided cost of demand response (DR) in a restructured market with RPS? This paper offers an answer to this question, which is critical for determining the cost-effectiveness of DR and its program design and implementation. We illustrate the answer's usefulness with five real-world examples of permanent load shifting (PLS) in California. These examples show that a PLS system's cost-effectiveness depends on its site-specific characteristics, including location, installation cost and performance, thus affirming the use of a targeted approach to DR design and implementation.",

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AU - Price, S.

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Avoided cost estimation and cost-effectiveness of permanent load shifting in California

Abstract

Scopus Subject Areas

User-Defined Keywords

UN SDGs

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