6. Demand Side Solutions

Question 1

Energy Efficiency

Answer 1

Intentional process to change the performance of devices in ENERGY terms

Question 2

Rebound Effect

Answer 2

When people increase their usage as a result of reduction in operating costs, thereby reducing the energy savings

Question 3

ESCO

Answer 3

Energy Service Company providing a broad range of energy solutions including designs and implementation of energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation and energy supply, and risk management.

Question 4

Premium Efficiency Investment

Answer 4

Portion of the investment in an energy efficient device or solution that relates directly to its energy efficiency improvements, based on some standard or benchmark. Basis for assessing returns on efficiency investment and not total investment

Question 5

Decoupling

Answer 5

Separating utility’s total recoverable revenue/profit from energy consumption (i.e. actual kWh used). ROR is aligned with meeting revenue targets, and rates are trued up or down to meet the target at the end of adjustment period. Intended to incentivize utilities to engage in EE programs.

Question 6

Demand Response

Answer 6

Deliberate load reductions during times of system need, such as periods of peak demand or high market prices. Leads to restoration of system’s supply and demand to equilibrium, and offsets/defers need for new generation, transmission, and/or distribution infrastructure

Question 7

Interruptible Tariff

Answer 7

Lower energy rate offered by utility in exchange for reducing power consumption during periods of system need. Tool used by utilities as a last-resort resource to be called upon in the case of imminent brownouts or blackouts

Question 8

Economic DR

Answer 8

Price response programs, involving voluntary response to price signals. End-users voluntarily reduce consumption during periods of high wholesale prices, receive market rate for avoided energy provided through demand reduction

Question 9

Direct Load Control

Answer 9

Agreement between utility and the customers where the utility remotely controls the operation of certain appliances in a household in response to high demand

Question 10

Response Time

Answer 10

How quickly a capacity generation source can be called on to either accept or deliver electricity. Eg. chemistry batteries with modern controls can be very quick to respond to the signal that they need to perform, whereas physical storage mechanisms can have slower response times.

Question 11

Ancillary Services

Answer 11

A set of services, both long and short term, of physical planning and system reliability purposes, including operating reserves (gas storage, extra capacity etc) and failure protection (if one generator fails, make sure it does not cascade the whole system)

Question 12

Co-Generation

Answer 12

CHP generates electricity and useful thermal energy (heat) in a single, integrated system both of which are used. Fundamental principle of cogeneration is that to maximize benefits, systems should be based on the heat demand of the application

Question 13

Load leveling

Answer 13

Method for reducing large fluctuations in electricity demand, for example by storing excess electricity during periods of low demand for use during periods of high demand (voltage leveling, spinning reserves/capacity on standby)

Question 14

Load shifting

Answer 14

Practice of managing electricity supply and demand so that peak energy use is shifted to off-peak periods

Question 15

Peak shaving

Answer 15

Type of DR to reduce peak energy requirements of the grid, at most constrained times of the day or year. Small amounts shaving at these moments can have substantial impact on the system power requirements and overall grid stability. Grid operators need to deploy less generation and T&D assets to prepare for rare but inevitable peaks

Question 16

Frequency regulation

Answer 16

Short-term management of the supply and demand balance in the grid to keep system operating within acceptable parameters of voltage and current to avoid tripping or curtailing assets, which could lead to cascading failures. Storage solutions are particularly effective at meeting this need due to their requirement to both take in and deliver electricity in balance over a given period of time. They can participate in “up” market sometimes in “down” markets others, often in rapid succession. These are sometimes referred to as “balancing markets” in Europe.