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Background for Demand Response in PNW

Explore the history, physical features, and institutional changes in the Pacific Northwest's power system that have led to an increased interest in demand response. Learn about the implications for the value of demand response and the need for more experience in this area.

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Background for Demand Response in PNW

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  1. Background for Demand Response in PNW Pacific Northwest Demand Response Project May 2, 2007 Ken Corum

  2. History - 1 Institutions • Regulated monopolies • Average cost pricing • Shared w/ rest of country < mid-90s 2

  3. History - 2 Physical features of Hydro system • Variable flows • Year-to-year • Season-to-season • Relatively little storage (~1/3 ave flow) • Generation capacity sized to capture energy from high flows • Capacity available for load following • Historically, PNW more concerned w/ annual energy than peak load 3

  4. Present and Future • Institutions • Mostly still regulated monopoly in retail, but very active wholesale market • Physical features of power system • Hydro system built out • Continuing load growth • Environmental constraints on hydro • New demands on hydro (e.g. integrating wind) • New generators non-hydro (~ rest of country) 4

  5. Implications for Value of DR • Physical changes increase cost of meeting peak loads • Institutional changes make peak loads’ costs more transparent • Both changes increase interest in DR 5

  6. What about DR costs, performance, potential? • Info on DR similar to energy efficiency in 1980 – “bigger than a breadbox, but…” • Analytical problem for DR different • EE ~ “engineering” question • DR ~ “consumer behavior” question • NEED MORE EXPERIENCE 6

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