Use of Residential Smart Appliances for Peak Load Shifting & Spinning Reserves: Cost Benefit Analysis

Conference · Wed Dec 01 00:00:00 EST 2010

OSTI ID:1148655

Sastry, Chellury; Pratt, Robert G.

Abstract In this paper, we present the results of an analytical cost-benefit study of residential smart appliances in support of a joint stakeholder petition to the EPA and DOE to provide a 5% credit to meet ENERGY STAR eligibility criteria for products that meet the definition of a smart appliance. The underlying hypothesis is that smart appliances can play a critical role in addressing some of the challenges associated with increased electricity demand, and increased penetration of renewable sources of power. Our analytical model utilizes current annual appliance electricity consumption data, and estimates what the wholesale grid operating cost savings would be if some percentage of appliance loads were shifted away from peak hours to run during off-peak hours, and appliance loads serve power system balancing needs such as spinning reserves that would otherwise have to be provided by generators. Historical wholesale market clearing prices (location marginal and spinning reserve) from major wholesale power markets in the United States are used to estimate savings. The savings are then compared with the five percent credit, to determine if the savings in grid operating costs (benefits) are at least as high as the credit (cost) if not higher.

• Research Organization: Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
• Sponsoring Organization: USDOE
• DOE Contract Number: AC05-76RL01830
• OSTI ID: 1148655
• Report Number(s): PNNL-SA-76867; TE1201000
• Resource Relation: Conference: Proceedings: Grid-Interop Forum 2010: Working Together for Interoperability, November 30-December 3, 2010, Chicago, Illinois
• Country of Publication: United States
• Language: English