WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 18
Global
Outlook
Demand-Side Management (DSM) such as direct load control,
demand response, and energy efficiency has been used for
decades to lower costs, increase usages efficiency, improve
the grid balancing and increase security of electricity supplies.
• DSM has become more complex because of decentralized
electricity production growth, leading to increased
bidirectional flows and greater network balancing needs.
Contrary to California in 2020(see above) it is thanks to
its demand response and energy flexibility programs that
ERCOT63 the Texas grid operator avoided blackouts in
June 2023.
These programs provide financial incentives to energy
consumers to reduce demand during times of electricity
grid stress or shift consumption to times of day when grid
pressures and power prices are lower. Demand response
payments were 20 times higher that year, rewarding those
who participate in the programme.64 However, these
spendings are negligeable compared to what a blackout
would have cost.
• On the economic side, time of use tariffs if well explained
and well understood and adopted by customers65 help
manage the demand and reduce customer bills.
Electricity storage
Different electricity storage technologies are available. Their
performance and cost depend on the storage scale and duration.
For large storage capacity and long durations Pumped Hydro
Storage (if geography allows) and Diabatic Compressed-air
energy storage (CAES) are the best options.67 However, diabatic
CAES is not a zero-emission technology, since it uses fuel such
as natural gas in the discharge cycles.
• Customer demand is influenced by economic aspects such as
price increases or psychological biases, such as a perception
of shortage risk. These factors were important in explaining
the drop in electricity consumption in Europe over the winter
of 2022-2023. This economic sobriety was maintained the
following winter.
Also, all economic conservation campaigns launched by utilities
or public authorities must consider human aspects at the risk
of unpleasant surprises (rebound effect66).
WEMO 2024
• Technical devices as smart meters, increased sensors on
networks and at customers' premises and more sophisticated
management algorithms improve the demand management
situation.
63 ERCOT: Electric Reliability Council of Texas
64 https://www.enelnorthamerica.com/insights/blogs/demand-response-2023-texas-heatwaves
HOME
• Sharing consumption data, within the limits authorized by
law, should make it possible to develop services allowing
better electricity grid management and significant savings
for the community. For example, better management of
congestion on the network could help avoid the construction
of new lines.
65 It is the fear that customers would not understand these variable tariffs that prevented the EU
to make them mandatory
66 https://blog.rexel.com/en/a-world-of-energy/
the-rebound-effect-the-hidden-face-of-energy-efficiency/
67 https://www.pnnl.gov/sites/default/files/media/file/ESGC%20Cost%20Performance%20
Report%202022%20PNNL-33283.pdf
18
Demand side management
NEXT
ARTICLE
