Chapter 9

Question 1

energy efficiency

Answer 1

a demand management innovation

intentional process by which deliberate intervention changes the performance of devises in ENERGY terms (not power! that’s DR). primarily involve changing the design or operation of existing/future electricity driven devices to meet the desired energy services with LESS energy,

conservation = needing less energy. 
EE = doing more with less energy.

Question 2

demand response

Answer 2

designed to change the peak load of electricity consumption. about making sure that demand can be managed to optimized the peak capacity needs of the electricity system (esp when grid is constrained). (as opposed to substantively changing the actual energy consumption over the long term)
DR = POWER application.

Question 3

smart grid

Answer 3

sensors, microprocessers, communication protocols, and computer control systems – that expand scope and observation and control that system operators can exert at MUCH lower costs than traditional methods

is a basket of technologies that can be applied to the grid’s normal requirements

(decentralized generation, proactive, automated and self-healing, multiple consumer production, two-way communication, ubiquitous monitors, condition-based maintenance, transparency, predictive reliability, real-time pricing)

Question 4

demand management

Answer 4

the modification of consumer demand for energy through various methods such as financial incentives [1] and behavioral change through education. Usually, the goal of demand side management is to encourage the consumer to use less energy during peak hours, or to move the time of energy use to off-peak times such as nighttime and weekend

Question 5

load profile

Answer 5

describes not just how much is used on average, but precisely when it is used throughout the day

(can be helpful to understand its contribution to overall system load and peak capacity)

Question 6

principal agent problem

Answer 6

or landlord-tenant problem.

classical problem occurs b/c the burden of incurring the costs of making the necessary demand management investments is separated from the benefits received by the implementation of those improvement (e.g. building owner paying to install more efficient devices would benefit the tenant through lower electricity bills).

Question 7

myopia

Answer 7

nearsightedness, consumers are myopic in their investment and consumption decisions. High discount rated applied to potential investments — higher than would suggest in rational market

Question 8

elasticity

Answer 8

the measurement of how responsive an economic variable is to a change in another variable

%age change in over variable / %age change in another variable

an elastic variable (e > 1) responds more than proportionally to changes in other variables

Question 9

energy conservation

Answer 9

reducing the need for energy services, foregoing the potential benefits they may bring

examples: change thermostat to less comfortable temperature, take shorter showers.

Question 10

electric efficiency

Answer 10

of device, component, or system in electricity, defined as the useful energy output divided by the total electrical power consumed in producing the output.

Efficiency = total useful energy out / total electricity in

Question 11

parasitic load

Answer 11

transformers, power supplies, and other devices that constantly draw energy when connected to the grid, even when not working for the intended purpose.

Question 12

baseline

Answer 12

use that would have happened if the EE intervention hadn’t happened

(ex-post benefit assessment)

Question 13

cost-benefit analysis

Answer 13

x

Question 14

payback period

Answer 14

ratio of the total upfront investment divided by the annual savings benefit

often used to understand how many years it would take for savings to repay the initial investment

Question 15

benchmark

Answer 15

baseline building or device performance characteristics prior to intervention

Question 16

systems benefit charge

Answer 16

(or Public Benefits Charge)

to help pay for EE solution (training, programs, certifications), utility regulators will levy this charge to collect funds from the customers and then use those funds to make necessary expenditures

Question 17

incentive regulation

Answer 17

increases the revenue and/or profit when utilities can meet or exceed efficiency performance benchmarks

Question 18

time of use rates

Answer 18

pricing strategy where the provider of a service or supplier of a commodity, may vary the price depending on the time-of-day when the service is provided or the commodity is delivered

Question 19

interruptible tariff

Answer 19

these tariffs (or rates that utilities charge customers) represented discount rates to large industrial customers that would make their loads “interruptible” by the utility in the event of system constraints.

utilities would call up these customers during/near peak capacity and ask them to reduce their load by amount x for period x. were expected to comply, but monitoring was problematic

Question 20

direct load control

Answer 20

allows for centralized and automated control of the devices in demand management situations (for small commercial HVAC and other commercial equipment)

when electricity system reaches peak demand, use of these devices can be curtailed. also allows device owners to have override feature. submit to program in exchange for rebates.

Question 21

capacity payments

Answer 21

p. 333

Generators who are successful in the auction will benefit from a steady, predictable revenue stream (capacity payments) that encourages them to invest in new generation or to keep existing generation available on the system.
The capacity obligation means they must be available to deliver energy when needed or face penalties.

Question 22

dispatch

Answer 22

Economic dispatch is the short-term determination of the optimal output of a number of electricity generation facilities, to meet the system load, at the lowest possible cost, subject to transmission and operational constraints.