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• Programs that focus on reducing peak load demand can identify inefficient and non-essential energy uses. • Technologies that respond to demand surges also promote energy efficiency. • Customer experience gained through demand response programs promotes more efficient use of energy. • Customers who participate in demand response programs are more likely to participate in future energy efficiency programs once an understanding of program benefits is reached. • Co-marketing of energy efficiency and demand response programs and measures is possible. From the standpoint of the customer interface, there are drivers for combining energy efficiency and demand response programs. These include: a) customers are more focused on saving money as opposed to saving energy or capacity, and b) the demand response automation made possible by smart grid technology makes the curtailment activity “invisible” to the customer, thus tying the decision to cost savings and pulling it away from direct curtailment behavior. While similar, demand response and energy efficiency programs have certain conflicts and sources of tension between them as well, including: • The difference in focus between energy efficiency and demand response programs (one being focused on specific time/demand periods with the other focused on general energy efficiency gains) can lead to competing choices regarding technologies and plans of action. • The marketing message may differ as energy efficiency is designed to reduce use while receiving the same service and the demand response message is tied to shifting load or getting by with less energy for short periods. • Energy efficiency can reduce the baseline against which demand response savings are calculated, thus reducing the financial benefits of demand response programs. • There are institution barriers to energy efficiency/demand response integration, including how to allocate costs/benefits among customers, utilities, and service providers (York and Kushler 2005). Despite these conflicts and tensions, there are a small number of agencies and service providers that have used an integrated approach when offering energy efficiency and demand response programs and measures. One such example is the New York State Energy Research and Development Authority (NYSERDA), which offered a menu of energy efficiency and demand response options to commercial and industrial customers through its Peak Load Reduction Program (PLRP). The PLRP was originally designed to reduce summertime peak load, but was modified to include permanent demand reduction through energy efficiency. The PLRP has four main program components: • permanent demand reduction efforts (PDRE) • load curtailment/shifting (LC/S) • dispatchable emergency generator initiatives (DEGI) • interval meters (IM). B.4PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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