FERC’s new rule on compensation for demand resources tips the market balance toward negawatts. Arguably the commission’s economic analysis is flawed, and the rule represents a covert policy...
AMI/Demand Response: Getting It Right the First Time
Each DR portfolio will have a different set of AMI needs, based on overall technology infrastructure.
resource, it can be overbuilt.
The electric power industry likely will invest billions of dollars in new AMI systems over the next 10 years. All energy consumers will bear the burden of these expenses, but they also will receive the benefits from the investment. To ensure these consumers receive the benefits that they deserve, the industry should spend the relatively small time and financial investment required to complete a proper analysis of the DR products and benefits. Absent this analysis, we may end up investing in system functionality that will not yield the benefits that we need and expect.
1. Eric Hughes with New Energy Associates ( EHughes@newenergyassoc.com) assisted with all of the resource planning model runs and provided insights regarding the interpretation of results.
2. The base case system was developed using data compiled by New Energy Associates, based on publicly available information for a selected region in the National Electric Reliability Councils (NERC), i.e., the Mid-Atlantic Area Council (MAAC) region. The initial data came from the Platts-McGraw Hill Base Case database for the region with some adjustments to the data based on New Energy Associates’ and Summit Blue’s experience.