The Strategic Benefits of Demand Response Services
Across much of the country, energy demand is surging at rates not seen in decades, while aging infrastructure further strains utilities with rising costs. Many utility territories overlook a valuable resource: the flexible load available through local water agencies. Tasks such as water treatment and pumping require significant energy, but they can also serve as effective and cost-efficient flexible load reduction resources.
Demand response (DR) programs are a powerful cost-saver for municipal utilities and rural electric cooperatives that can be customized to fit with utility business objectives. Flexible load can reduce costs during peak periods, minimizing exposure to market prices, demand and transmission charges. The programs can also shift and shape load profiles to optimize savings while enhancing reliability.
The following case study demonstrates typical results for a water agency with several megawatts of flexible load.
The Top 5 Reasons Utilities Should Consider Starting or Upgrading Their Demand Response Program
Immediate Savings | DR programs can offer financial relief for energy-intensive and budget-straining processes by optimizing programs and enrolling in those that best align with operational needs and goals.
Improve Grid Reliability |DR programs can enhance reliability by decreasing peak demand. This improvement can boost consistency at the substation level and prolong the lifespan of essential infrastructure.
Mitigate Energy Price Volatility | DR programs can minimize market volatility exposure. Many utilities are not fully hedged against price spikes during peak demand, which can negatively impact their financial health. DR offers an effective, low-cost hedge during these crucial hours.
Support Sustainability Goals | DR supports the sustainability efforts of water agencies by reducing energy consumption during peak demand periods, leading to a decrease in overall greenhouse gas emissions.
Community Recognition | DR positions utilities as community advocates fighting to keep local power both affordable and reliable. Water agencies and other commercial or industrial customers can participate in these programs and reduce consumption for as little as a few hours per year, leading to significant savings that benefit surrounding regions.
Proven Results with Water Agencies
Demand response is effective with all types and sizes of commercial and industrial (C&I) customers. Here are examples of how some water agencies manage flexible load to meet utility goals:
Shifting Pump Load: Running pumps during off-peak hours to take advantage of lower electricity rates and reduce grid strain.
Throttling Pump Operations: Adjusting the speed of pumps to match real-time demand, rather than continuously running them at full capacity.
Optimizing Treatment Processes: Scheduling energy-intensive treatment processes during off-peak hours to minimize costs.
Using Energy Storage Systems: Implementing storage solutions to capture energy during low demand hours to leverage in peak periods.
Automating Control Systems: Employing advanced control systems to monitor and adjust energy use dynamically, based on real-time demand and grid conditions.
Demand response is a valuable, cost-effective resource for municipal utilities and rural electric cooperatives.
If you would like to learn more about how DR can benefit your bottom line, email us at info@enersponse.com or visit enersponse.com/contact.
About Enersponse:
Enersponse is a distributed energy resource management provider and leading virtual power plant (VPP)operator. Successfully integrating DR programs with water agencies throughout California since 2015, Enersponse dispatches local utility DR events using application programming interfaces (APIs) with water agencies supervisory control and data acquisition (SCADA) systems. The seamless integration enables water agencies to quickly respond to DR events with minimal disruption to daily operations.