As the U.S. economy emerges from recession, demand for electricity is likely to grow, and with it pressure on wholesale prices and reserve margins in electricity markets. Given the high the costs and regulatory uncertainty surrounding capacity additions, many utilities and system operators have sought to avoid price spikes and reliability issues by shaping the level and timing of end-use consumption. The tools available for shaping demand include time-dependent rates and pricing plans; incentive-based demand response programs; direct load control technologies; customer communication campaigns. Effective deployment of these tools requires a clear understanding of their past performance among customers of various kinds, and rigorous customer segmentation in the targeted markets. …READ MORE
DNV KEMA Utility of the Future Blog
Changing a reputation: Wind energy projections are getting more accurate
A few posts ago, DNV KEMA’s Steve Jones shared some reflections on WINDPOWER 2013, in which he pointed to many signs of the maturing of the wind industry. Today, I am reflecting on another of those signs—evidence of improvement in the industry’s ability to accurately predict the performance of wind power projects before they are built. This improvement, assuming it continues, should help reduce the cost of capital to wind projects and/or increase the amount of debt they can support. Both of these impacts will help to reduce the cost of wind energy and increase its competitiveness in the energy markets. …READ MORE
The utility back-up plan (Part 2): Preparing for course corrections
With ambitious energy-saving goals to meet and customer satisfaction on the line, how can utilities respond quickly when energy efficiency program participation does not match expectations? By preparing realistic and nimble back-up plans. For more background information, please view Part one of this series, which explored the basic framework for a back-up plan. This post outlines effective tactics for ramping up or slowing down. …READ MORE