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FUEL FROM THE SKY: SOLAR POWER’S POTENTIAL FOR WESTERN ENERGY SUPPLY real-time prices would result in higher bills for consumers who use power during peak periods. Our research shows that consumers exposed to real-time price signals will shed certain loads to avoid this higher cost of power, thus reducing peak demand. We will look at the potential for peak demand reductions in greater detail in the section, “Price-Responsive Demand.” Demand for Power Growing RDI Consulting’s forecast of future demand is slightly lower, but close to historical levels, except for the Southwest, where we expect a substantial slowdown in demand growth. Exhibit 4 shows the five-year historic and forecast demand, which has been adjusted to account for the effects of weather and has been revised downward to account for the higher prices in California and adjacent states in 2001. This forecast represents RDI Consulting’s base case forecast, which makes certain assumptions about population growth and future economic activity. The regional growth rates in Exhibit 4 were created from state-level data, which are provided in the “State-by-State Appendices.” In Exhibit 5 we show the forecast energy demand growth by region for the next 10 years. By 2010 western energy demand is expected to grow by 23% from 1,092,160 gigawatt-hours (GWh, that is, thousands of megawatt-hours) in 2001 to 1,333,945 GWh in 2010. Exhibit 4: Five-year Historic and Forecast Demand Growth SOURCE: RDI Consulting, POWERmap 11PDF Image | Solar Fuel From The Sky
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