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Demand Forecasting
By and large, the majority of Americans favor renewable energy solutions and climate change mitigations. This sentiment is mirrored by robust consumer adoptions of distributed energy resources (DERs) like solar, battery energy storage systems, electric vehicles (EVs) and EVSE chargers, and smart home devices like thermostats and water heaters. According to analysts, DER market growth is expected to nearly double by 2027, with consumers taking steps toward electrified consumer items and energy independence. This is furthered through statistical data which indicates that consumer shopping trends have shifted to include environmentally friendly and sustainable products.
Consumer trends indicate that 40% of people would intentionally search for an environmentally-friendly gift, which means that during the holiday shopping season, the amount of behind-the-meter distributed energy resources (DERs) available within an area will increase. This increased adoption provides a path for utilities to leverage DER assets for demand flexibility programs through the use of a Grid-Edge distributed energy resource management system (DERMS). Let’s look at how utilities can best leverage these gifts to benefit the community by enhancing grid resiliency and defraying high peak energy costs.
Smart Thermostats & Demand Response
Smart thermostats are an effective way to increase the overall energy efficiency of a home and have become increasingly common in the marketplace leading to a higher adoption rate. On average, smart thermostats range from $80-300 making them the most affordable distributed energy resource (DER) available for any green energy shoppers. These thermostats are incredibly useful in demand response programs, which employ Grid-Edge DERMS to aggregate otherwise disparate devices to leverage for concerted conservation strategies. As of 2022, more than 10m U.S. customers were enrolled in residential demand response, which yielded more than 1 terawatt-hour of conserved electric demand. According to the Department of Energy, the U.S. requires 80-160 GWh of virtual power plant capacity by 2030; as it stands, demand response is attributed as yielding 30-60 GWh of existing virtual power plant capacity already.
Electric Vehicles & EV Managed Charging
For many reasons, December is a good time of year to purchase a new vehicle, whether that’s through incentives, discounts, or gift-giving. The adoption of electric vehicles has continued to rise, partly due to legislative mandates and global electrification efforts. Altogether, electric vehicles rose from around 4% of all sales in 2020 to 18% of the market by 2023. While increased EV adoption will increase overall electric demand on the U.S. grid, utilities can leverage this type of distributed energy resource (DER) through EV managed charging, another conservation strategy that shifts charging to off-peak periods of usage to enhance grid resiliency and minimizes the high costs associated with peak energy demand. Furthermore, EV telematics utilities can gain granular device data for forecasting and energy purchasing strategies later.
Solar & Virtual Power Plant Capacity
Beyond solar-powered holiday lights, photovoltaic solar offers a unique opportunity to homeowners seeking enhanced energy security and independence. As of 2023, 7% of surveyed homeowners said they had installed solar panels, while another 28% expressed interest. In fact, since the turn of the century more than 219 GW of solar capacity has been deployed nationwide, or roughly enough to meet demand for more than 37 million homes. For the last decade, solar deployments have averaged a 26% annual growth rate, fostered by legislation like the Investment Tax Credit, as well as the Bipartisan Infrastructure Law and Inflation Reduction Act.
Behind-the-meter photovoltaic solar is yet another useful distributed energy resource (DER), which utilities can access to redistribute ambient energy back into the grid through programs like community solar or virtual power plant strategies. So while solar may not be a common holiday gift, solar energy is a gift for utilities interested in mitigating the high costs of peak energy purchasing or costly infrastructure upgrades.
Battery Energy Storage Systems & Energy Arbitrage
As of this writing, U.S. battery storage capacity is expected to double this year, which has spurred numerous job opportunities along the newly named Battery Belt in the U.S. Midwest. For utilities, both front-of and behind-the-meter battery energy storage systems represent an opportunity to mitigate high peak costs through energy arbitrage. Because electric costs in the energy market reflect supply and demand, accessing off-peak energy sources is an effective strategy to minimize those high energy costs, particularly on days plagued by temperature extremes or other erratic weather-related variables.
Green Holiday Guide: Leveraging Distributed Energy Resources (DERs) Conclusion
With more distributed energy resources (DERs) adopted today than ever, utilities are poised to meet rising demand without sacrificing affordable bills or energy security. Through demand flexibility programs, utilities can leverage these assets for the load management opportunities necessary to flexibly meet consumer demand.
According to the 2024 J.D. Power 2024 Electric Utility Business Customer Satisfaction Study, customers are eager for the affordable utility costs that these demand flexibility initiatives foster, and research indicates that customer satisfaction leads to better financial outcomes for utilities. Furthermore, happier customers are more likely to enroll and participate in demand flexibility programs, which thrive with more willing participants, decreasing high peak energy market costs while strengthening grid resilience. Consider these facts this year, and give your utility and community the gift of more efficient and affordable electric service, and everyone wins.
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