Peak Load Management
CPower 's experience in demand side management (DSM) and related energy use programs has clearly demonstrated that client demand can indeed be affected by utility and other types of programs. The two primary types of DSM programs - energy efficiency and peak load management - have different core objectives. Energy efficiency programs primarily seek to reduce client energy use on a permanent basis through the installation of energy efficient technologies. Peak load management focuses on either curtailing or shifting demand away from high cost, peak demand periods. The relative costs and benefits of these programs also vary in how they are adapted and what their objectives are from utility to utility.Energy efficiency and peak load management share certain benefits. Reducing peak demands may also yield energy savings, and most energy efficient technologies yield some peak demand savings. While energy efficiency programs can, and often do, produce reductions in peak demand, such results have not historically been a priority of these programs. Instead, the primary focus has been the estimation of the program's energy (kWh) savings.
Peak Load Management
CPower has extensive experience working with utilities, ISO/RTOs, municipal power companies and government agencies on the design, development, management, and implementation of peak load management programs. When coordinated with energy efficiency and demand response programs, these programs yield reduced peak-coincident electric load, improve electric system reliability and system load factors, manage risk and improve system efficiency. These programs also provide cost-effective energy and capacity resources by reducing summer and/or winter coincident peak demand. In addition, peak load management programs help clients meet federal government mandated energy efficiency standards for various states.
Peak load management programs, in conjunction with energy efficiency programs, help utilities and RTOs defer the need for new sources of power. CPower can develop, manage, and implement custom designed peak load management programs for utilities and other agencies that yield the following benefits:
- System reliability: Clients employing peak load management programs increase the reliability of a company's electric system by shedding load on notice of as little as 10 minutes using direct load controls (DLC), which reduces the likelihood of power outages.
- Cost avoidance and power quality: Utility systems are designed to meet the power needs at peak load, which occurs less than one to two percent of operating hours per year. CPower's utility systems reduce the peak load at the facility level, which can significantly reduce operating costs. Additional savings from peak load management programs include the reduction of in-line losses within the transmission and distribution system in conjunction with ancillary services, such as reserves. This reduction can help companies address short-term load fluctuations and meet power quality requirements.
- Risk management: Peak load management programs have a cushioning effect in the deregulated energy market, providing better price stability in the real-time energy markets.
- Client services: CPower's peak load management programs provide an added service that can help companies retain existing clients and attract prospects.
- System efficiency: CPower's peak load management programs enable companies to use their capacity to align usage pricing with real-time energy cost, allowing them to provide clients with incentives to adjust their usage patterns accordingly. For example, shifting the load from on-peak hours to off-peak hours improves system load factors and enhances system efficiency.
- Direct load control: CPower equips targeted clients with direct load control (DLC) devices that can be turned off or cycled for relatively short periods of time.
- Demand bidding or buyback programs: Clients can use these online programs to manage peak loads effectively, based on the buyback rates.
- Time-of-use rates: CPower designs optimized time-of-use rate programs that charge higher prices for peak electricity as a way to shift demand to off-peak periods. Interruptible rate programs offer discounts in exchange for a user's commitment to reduce demand when requested by the utility.
- Interruptible programs for commercial/industrial clients: By working with CPower, clients can design an aggregated client network with a turnkey desired MW of peak load reduction, which can be verified and validated using industry approved FSL and CBL baseline calculations. These programs are commonly referred as demand response programs.