DOE OSTI2013
The Energy Information Administration (EIA) estimates that electricity use will increase by more than 30 percent by 2035, and that residential electricity usage will increase by 23 percent. During this time, peak electricity demand is expected grow at an even greater rate, requiring significant investment in system capacity. In addition, increased penetration of intermittent renewable resources will increase system variability, requiring additional resources to mitigate the variability associated with generator output. Widespread adoption of demand response (DR) enabled appliances, thermostats, and other demand-side resources can result in significant reduction to peak electrical demand and provide potential grid stabilization benefits. The key to adoption is to provide this resource at a cost commensurate with traditional grid capabilities, and to appropriately share both the costs and the benefits between the consumer and the service provider (i.e., the utility). However, the business model for investing in demand-side resources cannot be determined without an estimation of the possible technical benefits and how those benefits translate to monetary value in current electrical market structures. GE Appliances has developed a line of appliances that will have the capability of offering several levels of demand reduction actions based on information received from the utility grid, often in the form of price or grid status. However due to a number of factors, including the number of DR-enabled appliances available at any given time, the reduction of diversity factor due to the synchronizing control signal, and the percentage of consumers who may override the utility signal, it can be difficult to predict the aggregate response of a large number of residences. The effects of these behaviors have been modeled and simulated in the Pacific Northwest National Laboratory (PNNL) developed open-source software, GridLAB-D™, including evaluation of appliance controls, improvement to current algorithms, and development of aggregate control methodologies. The results of these simulations provide an estimation of the possible technical benefits (e.g., peak load reduction) attributable to smart appliances, but do not describe the monetary value of these services. This report is the final in a series of three reports funded by U.S. Department of Energy Office of Electricity Delivery and Energy Reliability (DOE-OE) in collaboration with GE Appliances’ through a Cooperative Research and Development Agreement (CRADA) to describe the potential of GE Appliances’ DR-enabled appliances to provide benefits to the utility grid.