A kWh Saved is a kWh Saved

Energy efficiency, typically measured on an annual basis, can be used to help utilities meet peak demand at a low cost relative to other available tools, according to a new study from the Lawrence Berkeley National Laboratory.

The Berkeley Lab also introduced two new acronyms: PA CSE, which stands for the program administrator cost of saving electricity; and PA CSPD, which stands for the program administrator cost of saving peak demand. The lab’s Electricity Markets & Policy Group gathered data on costs, energy savings, and peak demand savings for electricity programs at 36 IOUs and other PAs in nine states from 2014 to 2017.

During the three-year study period, the savings-weighted PA CSE averaged $0.029 kWh, and the savings-weighted PA CSPD averaged $1,483/kWh.

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Source: Lawrence Berkeley Labs – https://emp.lbl.gov/peak-demand-impacts-electricity-efficiency

There are many ways to reduce peak demand, with energy efficiency as part of the mix. As the study’s abstract notes, “with an increasing need for a more flexible and resilient electricity system, and changing costs for generation, utilities and other efficiency program administrators must take into account all characteristics of efficiency programs—including peak demand reduction—to ensure a reliable system at the most affordable cost.”

Whatever the source, it all adds up (or down, in this case). At Virtual Peaker, we host the world’s most advanced distributed energy platform and have the honor of working with the most innovative utilities and energy companies in the country. We know that no matter the source, a kWh saved is a kWh saved. And energy efficiency plays a critical role in overall peak reduction.

About The Author
Jeff Quigley blog author

Jeff is the VP of Sales for Virtual Peaker. He has spent his entire career in energy and data analytics where he has led teams working with utilities, government agencies, oil and gas companies, and financial institutions to help drive growth strategy and manage energy transition. He has worked with a team of analysts in developing an integrated resource plan (IRP) for a major U.S. vertically integrated utility, with a focus on load forecasting, locational marginal pricing (LMP) prediction, and long-term grid reliability. He has also managed the development of marketing and growth strategy for one of the four largest global oil and gas firms with a focus on the long-term viability of the Asian market-entry strategy.

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