As Michigan utilities and policymakers grapple with how to
replace lost generation from retired power plants, a pair of recent
studies suggest better management of demand can be a major part of the
solution – saving ratepayers money in the process.
The reports suggest that demand response
efforts — or incentives meant to decrease energy demand during peak
periods — can effectively limit the need for new natural gas plants in
particular, which are the favored option for utilities moving forward as
a relatively cheap, baseload source of energy.
Advanced Energy Economy Institute released a report
Friday showing that Michigan could offset a projected 2,000 MW summer
demand increase in the Lower Peninsula through 2026 just through demand
response programs. In addition to avoiding or limiting the need for new
power plants, it would also save ratepayers up to $1.2 billion, the
report added.
Meanwhile, the Michigan Agency for Energy and the Michigan Public Service Commission released a report in late January
with similar conclusions. The report was the result of an inquiry to
the Midcontinent Independent System Operator about capacity constraints
in the Lower Peninsula under certain circumstances, including nuclear
plant closures.
“It seems that it will be necessary for
Michigan (load serving entities) to follow through with their current
plans for demand response development,” the MPSC report notes. “The
demand response programs become increasingly important when the system
is stressed due to high demand and/or unexpected plant outages.”
The MPSC report added that demand
response programs would be the “most cost-effective way” to “provide
significant contributions toward meeting near-term capacity
requirements” and delay the need for additional peaking capacity.
http://midwestenergynews.com/2017/02/22/demand-response-could-limit-the-need-for-new-power-plants-in-michigan-studies-say/
