The Smart Grid: An Estimation of the Energy and CO2 Benefits

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Basic human factor engineering principles suggest that integrating and tailoring energy savings information is a desirable goal. By reducing the number of channels of data, consumer attention can be focused (Sanquist 2008). Similarly, if the smart meter in the household is viewed as an energy saving tool, the effect is likely to extend to the smart grid/meter as an information source for further savings. This latter effect will depend largely on the extent to which the diverse information regarding energy efficiency behaviors can be presented in a meaningful way in the home. A starting point might be to provide ranked lists of potential actions (such as the Gardner and Stern’s short list) tailored to data regarding usage patterns available via smart metering. B.3 Summary Combining the administration of energy efficiency and demand response programs is expected to result in cost savings that could be reinvested in energy efficiency programs and/or increase program effectiveness. 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, indirect reductions in electricity and CO2 emissions calculated in Attachment 2 are estimated to be zero, as there is not a basis for determining administrative cost reductions or increases in program effectiveness. No direct reductions in electricity or capacity are expected. B.4 Recommendations for Additional Work and/or Consideration • An analysis of the impact of co-administering energy efficiency and demand response programs. That is, if energy efficiency and demand response programs are administered together, by what percent could the total technology/administrative overhead costs be reduced? A quote from Jesse Berst (2009) indicates thought on this recommendation–“Rising costs? We’ll just have the electric power industry integrate energy efficiency and demand response.” • An analysis of how utilities organizationally typically deliver energy efficiency and demand response programs (together or separate). • Examine how the implementation of smart grid technologies influences the effectiveness (e.g., energy, capacity, and utility cost) of merging energy efficiency and demand response administrative / delivery structures. B.5 References Berst J. 2009. “Four Keys to Managing Smart Grid Evolution.” SmartGridNews.com. Accessed December 29, 2009, at http://www.smartgridnews.com/artman/publish/commentary/Four_Keys_to_Managing_Smart_Grid_ Evolution-564.html. Electric Power Research Institute (EPRI). 2009. Assessment of Achievable Potential from Energy Efficiency and Demand Response Programs in the U.S.: (2010–2030). 1016987, EPRI, Palo Alto, California. Accessed December 20, 2009, at http://mydocs.epri.com/docs/public/000000000001018363.pdf. B.7

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