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Title: 2025 California Demand Response Potential Study - Charting California’s Demand Response Future. Final Report on Phase 2 Results

Abstract

California’s legislative and regulatory goals for renewable energy are changing the power grid’s dynamics. Increased variable generation resource penetration connected to the bulk power system, as well as, distributed energy resources (DERs) connected to the distribution system affect the grid’s reliable operation over many different time scales (e.g., days to hours to minutes to seconds). As the state continues this transition, it will require careful planning to ensure resources with the right characteristics are available to meet changing grid management needs. Demand response (DR) has the potential to provide important resources for keeping the electricity grid stable and efficient, to defer upgrades to generation, transmission and distribution systems, and to deliver customer economic benefits. This study estimates the potential size and cost of future DR resources for California’s three investor-owned utilities (IOUs): Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). Our goal is to provide data-driven insights as the California Public Utilities Commission (CPUC) evaluates how to enhance DR’s role in meeting California’s resource planning needs and operational requirements. We address two fundamental questions: 1. What cost-competitive DR service types will meet California’s future grid needs as it movesmore » towards clean energy and advanced infrastructure? 2. What is the size and cost of the expected resource base for the DR service types?« less

Authors:
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  1. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
  2. Energy and Environmental Economics, Inc. (E3), San Francisco, CA (United States)
  3. Nexant, Inc., Nashville, TN (United States)
Publication Date:
Research Org.:
Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Building Technologies Office (EE-5B); California Public Utilities Commission (CPUC). California Institute for Energy and Environment
OSTI Identifier:
1421800
DOE Contract Number:
AC02-05CH11231
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
24 POWER TRANSMISSION AND DISTRIBUTION

Citation Formats

Alstone, Peter, Potter, Jennifer, Piette, Mary Ann, Schwartz, Peter, Berger, Michael A., Dunn, Laurel N., Smith, Sarah J., Sohn, Michael D., Aghajanzadeh, Aruab, Stensson, Sofia, Szinai, Julie, Walter, Travis, McKenzie, Lucy, Lavin, Luke, Schneiderman, Brendan, Mileva, Ana, Cutter, Eric, Olson, Arne, Bode, Josh, Ciccone, Adriana, and Jain, Ankit. 2025 California Demand Response Potential Study - Charting California’s Demand Response Future. Final Report on Phase 2 Results. United States: N. p., 2017. Web. doi:10.2172/1421800.
Alstone, Peter, Potter, Jennifer, Piette, Mary Ann, Schwartz, Peter, Berger, Michael A., Dunn, Laurel N., Smith, Sarah J., Sohn, Michael D., Aghajanzadeh, Aruab, Stensson, Sofia, Szinai, Julie, Walter, Travis, McKenzie, Lucy, Lavin, Luke, Schneiderman, Brendan, Mileva, Ana, Cutter, Eric, Olson, Arne, Bode, Josh, Ciccone, Adriana, & Jain, Ankit. 2025 California Demand Response Potential Study - Charting California’s Demand Response Future. Final Report on Phase 2 Results. United States. doi:10.2172/1421800.
Alstone, Peter, Potter, Jennifer, Piette, Mary Ann, Schwartz, Peter, Berger, Michael A., Dunn, Laurel N., Smith, Sarah J., Sohn, Michael D., Aghajanzadeh, Aruab, Stensson, Sofia, Szinai, Julie, Walter, Travis, McKenzie, Lucy, Lavin, Luke, Schneiderman, Brendan, Mileva, Ana, Cutter, Eric, Olson, Arne, Bode, Josh, Ciccone, Adriana, and Jain, Ankit. Wed . "2025 California Demand Response Potential Study - Charting California’s Demand Response Future. Final Report on Phase 2 Results". United States. doi:10.2172/1421800. https://www.osti.gov/servlets/purl/1421800.
@article{osti_1421800,
title = {2025 California Demand Response Potential Study - Charting California’s Demand Response Future. Final Report on Phase 2 Results},
author = {Alstone, Peter and Potter, Jennifer and Piette, Mary Ann and Schwartz, Peter and Berger, Michael A. and Dunn, Laurel N. and Smith, Sarah J. and Sohn, Michael D. and Aghajanzadeh, Aruab and Stensson, Sofia and Szinai, Julie and Walter, Travis and McKenzie, Lucy and Lavin, Luke and Schneiderman, Brendan and Mileva, Ana and Cutter, Eric and Olson, Arne and Bode, Josh and Ciccone, Adriana and Jain, Ankit},
abstractNote = {California’s legislative and regulatory goals for renewable energy are changing the power grid’s dynamics. Increased variable generation resource penetration connected to the bulk power system, as well as, distributed energy resources (DERs) connected to the distribution system affect the grid’s reliable operation over many different time scales (e.g., days to hours to minutes to seconds). As the state continues this transition, it will require careful planning to ensure resources with the right characteristics are available to meet changing grid management needs. Demand response (DR) has the potential to provide important resources for keeping the electricity grid stable and efficient, to defer upgrades to generation, transmission and distribution systems, and to deliver customer economic benefits. This study estimates the potential size and cost of future DR resources for California’s three investor-owned utilities (IOUs): Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). Our goal is to provide data-driven insights as the California Public Utilities Commission (CPUC) evaluates how to enhance DR’s role in meeting California’s resource planning needs and operational requirements. We address two fundamental questions: 1. What cost-competitive DR service types will meet California’s future grid needs as it moves towards clean energy and advanced infrastructure? 2. What is the size and cost of the expected resource base for the DR service types?},
doi = {10.2172/1421800},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Wed Mar 01 00:00:00 EST 2017},
month = {Wed Mar 01 00:00:00 EST 2017}
}

Technical Report:

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  • Demand response (DR) is an important resource for keeping the electricity grid stable and efficient; deferring upgrades to generation, transmission, and distribution systems; and providing other customer economic benefits. This study estimates the potential size and cost of the available DR resource for California’s three investor-owned utilities (IOUs), as the California Public Utilities Commission (CPUC) evaluates how to enhance the role of DR in meeting California’s resource planning needs and operational requirements. As the state forges a clean energy future, the contributions of wind and solar electricity from centralized and distributed generation will fundamentally change the power grid’s operational dynamics.more » This transition requires careful planning to ensure sufficient capacity is available with the right characteristics – flexibility and fast response – to meet reliability needs. Illustrated is a snapshot of how net load (the difference between demand and intermittent renewables) is expected to shift. Increasing contributions from renewable generation introduces steeper ramps and a shift, into the evening, of the hours that drive capacity needs. These hours of peak capacity need are indicated by the black dots on the plots. Ultimately this study quantifies the ability and the cost of using DR resources to help meet the capacity need at these forecasted critical hours in the state.« less
  • The 2025 California Demand Response Potential Study Phase 2 Report1 was released on March 1, 2017, and described a range of pathways for Demand Response (DR) to support a clean, stable, and cost-effective electric grid for California. One of the Report’s key findings was that while there appears to be very low future value for untargeted DR Shed aimed at system-wide peak load conditions, there could be significant value for locally focused Shed resources. Although the dynamics of renewable capacity expansion have reduced the pressure to build new thermal generation in general, there are still transmission-constrained areas of the statemore » where load growth needs to be managed with the addition of new local capacity, which could include DERs and/or DR. This Addendum to the Phase 2 Report presents a breakdown of the expected future “Local Shed” DR potential at a finer geographic resolution than what is available in the original report, with results summarized by SubLAP and Local Capacity Area (LCA).« less
  • The primary objective of this report was to provide an overview of the variety of industrial refrigerated facilities, refrigeration systems, and control systems found throughout California.
  • This case study enhances the understanding of open automated demand response opportunities in municipal wastewater treatment facilities. The report summarizes the findings of a 100 day submetering project at the San Luis Rey Wastewater Treatment Plant, a municipal wastewater treatment facility in Oceanside, California. The report reveals that key energy-intensive equipment such as pumps and centrifuges can be targeted for large load reductions. Demand response tests on the effluent pumps resulted a 300 kW load reduction and tests on centrifuges resulted in a 40 kW load reduction. Although tests on the facility?s blowers resulted in peak period load reductions ofmore » 78 kW sharp, short-lived increases in the turbidity of the wastewater effluent were experienced within 24 hours of the test. The results of these tests, which were conducted on blowers without variable speed drive capability, would not be acceptable and warrant further study. This study finds that wastewater treatment facilities have significant open automated demand response potential. However, limiting factors to implementing demand response are the reaction of effluent turbidity to reduced aeration load, along with the cogeneration capabilities of municipal facilities, including existing power purchase agreements and utility receptiveness to purchasing electricity from cogeneration facilities.« less