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This indirect mechanism would combine the administration of energy efficiency and demand response1 programs to achieve cost savings that could be reinvested in efficiency programs. However, the literature review and contact with experts in the energy efficiency and demand response fields did not reveal any program data or information that could be used to estimate administrative cost reductions or increases in program effectiveness. Based on this finding, indirect reductions in electricity and associated CO2 emissions shown in Table 3.4 and calculated in Attachment 2 are estimated to be zero, as no basis could be estimated for determining administrative cost reductions or increases in program effectiveness that might ensue. No direct reductions are expected. Table 3.4. Estimated Indirect Impacts of Jointly Marketing Energy Efficiency and Demand Response Programs Avoided Expenditure Reinvested to Save Carbon (2030) Baseline Captial Expenditure Electric Sector Annual Reductions (2030) Est. Low High (109 $) 15 6 Savings (109 $) 0.0 0.0 % of United States Carbon Emissions % of United (MMT/ % % 0 0 0 0 % 1 1 Investment 10% Demand Response, Residential @ $400/kW & 8.8¢/kWh 10% Demand Response, Small/Medium Commercial Buildings @ $300/kW & 8.8¢/kWh States year) Energy 9 (10 kWh/ year) 0000 However, to place the potential of this mechanisms in perspective, if combining the marketing and outreach of energy efficiency and demand response programs resulted in a 1% savings in program operating costs and the savings were re-invested in energy efficiency, a reduction in electricity supply of 3 B kWh (0.05%) and associated CO2 emissions of 1.4 MMT (0.04%) might be expected. This is based on the combined potential for the residential and small/medium commercial building sectors. Because of the complexity of energy-using systems in large commercial and industrial customers, we anticipate that both energy efficiency and demand response programs will need to be delivered with a customer-specific focus in which a smart grid may play only a small role. Further investigation of the potential for jointly marketing energy efficiency and demand response programs is suggested. 3.1.3 Key Enabling Technology: Disaggregation of Total Loads into End Uses This section describes how the measurement and communication capabilities of a smart grid can be leveraged to provide unprecedented detail on customer end-use consumption. While the ability to disaggregate loads does not provide direct or indirect reductions, it forms the technical basis for providing remote diagnostics for HVAC loads via a smart grid, as discussed in Section 3.1.4 (Mechanism C), and for improved M&V of energy savings from efficiency measures, as described in Section 3.1.5 1 Demand response is most closely associated with curtailment behavior, as distinct from energy efficiency measures and behavior. While often achieving similar goals, demand response is principally designed to reduce peak/critical loads through load shifting and may not provide direct reduction in energy use, whereas energy efficiency is designed to reduce overall energy consumption and provide long-term savings. Both are intended to provide monetary savings to consumers, but energy efficiency provides virtually no change in consumer comfort and usability, whereas demand response may have a short-term impact on consumer comfort and/or service. 3.11PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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