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Tag:

utility bill

Demand Response: People, not New Power Plants, are Driving the Clean Energy Future

Demand Response: People, not New Power Plants, are Driving the Clean Energy Future

written by Cheryl Roberto

Clean energy resources, like wind, solar, and energy efficiency, have certain key advantages over traditional, fossil fuel-based resources: they don’t require expensive, polluting fuels or large capital investment, consume little to no water, generate negligible carbon emissions, and are easily scalable. To take full advantage of low-carbon, renewable energy sources, we need a power grid with enough flexibility to harness clean energy when it is available and abundant. That’s where demand response, a people-driven solution, comes in.

On a hot summer day, for example, electricity use rapidly increases as people turn on air conditioners to avoid the heat of the late afternoon. A decade ago, the grid operator’s only option is to turn on another fossil fuel power plant to meet the increased need for electricity. But, at any given time, there are thousands of light switches left on, idle water heaters, cycling swimming pool pumps, and forgotten thermostats that people could temporarily turn off or down, if only they were offered the right incentive. If asked, people can adjust their power usage in exchange for a financial reward. We call this “demand response,” and it is increasingly helping to balance the flow of electricity with our energy needs at a given moment.

Demand response diverts money that would generally go to a fossil fuel power plant to homeowners and businesses instead. In this scenario, a utility or demand response provider sends a message for participants to reduce electricity use at key times in exchange for a credit or rebate on their utility bill, in addition to the cost savings they will earn through conservation. Of course, participants always have the option to opt-out with the tap of a button on their smart phone or thermostat.

While demand response might sound unconventional, it is actually a traditional, common-sense economic idea that has not been adequately applied within the electricity sector. In any market, customers are often encouraged to tweak their behaviors in return for a potential reward. When was the last time you were asked to give up your seat on a flight after the airline overbooked the plane? The airlines either offer money or a free plane ticket if you take a later flight.

Demand response can do the same thing for electricity, incentivizing more energy use when inexpensive, carbon-free renewable energy is abundant, and discouraging non-essential energy use when an additional, fossil-fueled power plant may need to be turned on.

Best of all, demand response is more affordable than constructing new power plants. As utilities invest around two trillion dollars over the next two decades to modernize our century-old electric grid, technology and people will play a larger role in deciding how power is produced and used.

Demand response adds a people-driven dynamic to the power grid, transforming our electricity system from a one-way, centralized power network in which customers passively receive electricity, to a more localized, two-way flow of power and information where both parties gain. Plus, we  will all benefit from enhanced reliability on the power grid, as well as curbing energy use during the hottest and coldest months, offsetting the need for expensive, inefficient, and dirty ‘peaker’ plants generally only used to generate power several dozen hours per year during these periods of extreme weather.

If we are going to meet the challenge of climate change, we will have to accelerate the shift to a clean energy economy with innovative, user-friendly technology that puts people in the driver’s seat. Demand response is good for people, businesses, and the environment, and will unlock a future that relies on the intelligent, resilient, and clean energy solutions. Let’s put it to work for us.



April 24, 2014 0 comment
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Raise the Roof on Solar in Massachusetts

written by Walter Wang

With its innovation economy and leading energy policies, Massachusetts has been a bright spot of solar growth. In fact, solar has proven so popular in Massachusetts that the state met its 250 MW goal four years early! Not one to rest on his laurels, Governor Patrick went ahead and upped the ante with a higher 1,600 MW by 2020 target.

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February 3, 2014 0 comment
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Triple Insulated Windows: Baby, it’s Cold Outside!

written by Walter Wang

Boasting a savings of 12% whole house energy consumption savings it is tempting to immediately order new highly insulated windows for the whole house. But before you do, consider the payback. Sure, you will be snug as a bug inside the house but according to the Department of Energy’s Pacific Northwest National Laboratory (PNNL), it

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December 5, 2013 0 comment
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Demand Response Programs Saved Crucial Electricity During Heat Wave

written by Yale Environment 360

As electricity producers struggled to supply power during last week’s heat wave along the U.S. East Coast, so-called “demand response” programs — which enable power companies to remotely reduce power usage in participating businesses and homes — were vital in avoiding blackouts, utility officials said.

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July 23, 2013 0 comment
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Energy Saving Tips for Your Home

written by Walter Wang

Every homeowner can reduce the utility bill by reducing the amount of electrical power used in the home. It is best to begin with the appliance that uses the most energy. This is the home’s HVAC system. It is responsible for thirty percent or more of a home’s energy usage. The following tips will help reduce energy use and lower the utility bill.

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March 26, 2013 2 comments
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On-Bill Financing: Why Isn’t Everybody Doing It?

written by Walter Wang

If someone told me they could improve the efficiency of my computer so that it operates quicker, at no extra cost to me, I can’t imagine I’d turn them away. Yet, the energy efficiency industry offers a similar option for homes and businesses and at least so far, consumers aren’t flocking to the programs.

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December 16, 2011 0 comment
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How Will Clean Energy Legislation Affect Electricity Prices?

written by Keith Tanner

As debate heats up around the proposals for clean energy legislation in Congress, one of the main points of contention is the amount of money it will cost.  More specifically, everyone wants to know how the average American household will be impacted by the respective energy bills in the House (Waxman-Markey’s American Clean Energy and Security Act) and the Senate (Kerry-Boxer’s Clean Energy Jobs and American Power Act).  This article will investigate the change in energy prices one can expect from legislation that could be passed within the coming months, and try to sift through the wide discrepancy in figures that are being tossed around.  Then some recommendations will be presented as to how energy usage can be reduced, to preempt any anticipated rises in cost.

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November 13, 2009 9 comments
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What if they had a Smart Grid and nobody came?

written by Sharon Bunkin

The Smart Grid is coming, but most people around the country are not aware of what it is or what it means to them. If a key goal of the Smart Grid is ultimately energy conservation, the Grid’s very success will be dependent upon consumer awareness and support.

The Smart Grid will bring exciting improvements to our utility infrastructure such as more reliable power delivery and options for renewable power. The new Grid will provide other benefits including peak load management for utilities and energy storage capabilities. For consumers, this will also mean the installation of a Smart Meter, an improvement on traditional electric meters designed to communicate power usage between the consumer and their utility and enable consumers to reduce their bills by managing consumption, at least in the long run. Stimulus funding will help pay for some of the development, but consumers will still need to cover more than a fair share.

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July 1, 2009 11 comments
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