Some states in the US have been using demand response measures to address peak power problems.
That’s because the highest levels of daily demand are increasingly greater than the average level of daily demand which is driving up overall power costs.
In addition, states are also experiencing a rapid growth in the use of energy resources with variable supply, such as residential solar panels which causes the challenge of addressing residential demand levels that surge when it is unavailable.
The National Governors Association (NGA) stated some states have been using demand response measures which provide incentives for customers to reduce their usage at peak times.
The NGA added other states are also exploring how to design energy efficiency measures to reduce power use and solve peak demand concerns.
However, it also stated efforts to co-ordinate the delivery of demand response and energy efficiency are not generally pursued therefore, states may be missing out on opportunities to leverage each type of measure.
It suggests State Governors measure the peak or time-differentiated value of both demand response and energy efficiency savings when designing these kind of schemes.
States should also support energy data collection to better understand patterns of electricity use and savings while addressing concerns about privacy and access, encourage integration of residential and commercial demand response and energy efficiency programs, the NGA added.