New research finds that, if properly valued, utility programs aggregating customer-owned distributed energy resources – and, in turn, providing flexible power system support – can help ensure demand response (DR) is more than just traditional load control, according to a recent Utility Dive article. A 2023 Lawrence Berkeley National Laboratory study found that utilities that recognized how price-based demand response (PBDR) programs can change customer electricity usage through price signals may find them the most cost-effective planning option.

In the article, which outlines the benefits of PBDR programs seen by various utilities, Principal Ryan Hledik was quoted. He notes that “planning models often oversimplify the benefits” of PBDR performance, but “[Arizona Public Service] has more than half of its residential customers on voluntary TOU rates,” which shows “more participation can be achieved if DR is prioritized.”

The Utility Dive article, “A new era of price-based demand response emerges, but utilities and regulators need proof of its potential,” is available below.

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