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Table B.2. Estimated Realistic and Maximum Potential Reductions in Summer Peak Load Demand due to Energy Efficiency and Demand Response Measures, GW Energy Efficiency Demand Response Realistic Achievable Year Potential Maximum Achievable Potential 95 GW (8.5%) Realistic Achievable Potential 52 GW (4.6%) Maximum Achievable Potential 76 GW (6.8%) Total 92-171 GW (8.2-14.3%) 2 GW (0.2%) 56 GW (5.0%) 22 GW (2.0%) 56 GW (5.0%) 24-112 GW (2.2-10.0%) 2010 2020 2030 Source: EPRI 2009 40 GW (3.6%) 79 GW (7.0%) 118 GW (10.5%) 79 GW (7.0%) 100 GW (8.9%) 157-218 GW (14-20%) EPRI estimates the costs to implement the energy efficiency and demand response programs generating the energy efficiency gains outlined previously at $1 B to $2 B in 2010, $8 B to $20 B in 2020, and $19 B to $47 B in 2030 (EPRI 2009). EPRI also estimated the levelized cost for energy efficiency ($/kWh) and demand response ($/kW-year) measures. The levelized costs for energy efficiency measures were estimated at $.0217/kWh in 2010, $.0264 in 2020, and $.0322 in 2030. The levelized costs for demand response measures were estimated at $50.70, $61.81, and $75.34/kW-year for 2010, 2020, and 2030, respectively. EPRI compared these results to those found in other recent studies. One study conducted by the Midwest Energy Efficiency Alliance) calculated an average levelized cost for energy efficiency measures at $.10/kWh. A second study conducted by American Council for an Energy Efficient Economy focused on energy efficiency potential in Florida estimated the levelized cost of energy efficiency measures for residential consumers to be $.035/kWh. The final examination was conducted by the authors of the EPRI report on planned expenditures by California investor-owned utilities during the 2009-2011 program cycle. This analysis yielded levelized costs of $.07/kWh (EPRI 2009). In preparing this paper, the author made several contacts with experts in energy efficiency and demand response fields but was unable to identify program data or literature, which could be used to estimate the administrative cost reductions potential through the integration of energy efficiency and demand response programs. Further, the contacted experts knew of few utilities employing integrated approaches. This conclusion is supported by the findings of York and Kushler (2005): “Overall, the experts we interviewed were virtually unanimous in responding that they knew of few or no examples of programs that had explicitly attempted to integrate energy efficiency and demand response objectives and measures into a single program. At the same time, most of our interviewees felt that such an integrated approach had some conceptual merit and was worth testing.” Though energy efficiency and demand response integration is limited, there are a number of possible synergies between energy efficiency and demand response programs and measures, including: • Energy efficiency can be used to reduce demand permanently, including during peak load hours. B.3PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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