Today the Supreme Court ruled in favor of Demand Response programs. From Bloomberg:
FERC’s ‘Demand Response’ Rule Upheld by U.S. Supreme Court
January 25, 2016 — 10:03 AM EST Updated on January 25, 2016 — 10:14 AM EST
The U.S. Supreme Court dealt a blow to power generators, upholding a federal rule aimed at encouraging industrial consumers to cut electricity use.
The justices, voting 6-2, said the Federal Energy Regulatory Commission acted within its authority with the order, which sets rates for an energy-saving practice known as “demand response.” The court also upheld the formula used by FERC.
The ruling is a missed opportunity for the country’s biggest energy generators, which were seeking a chance to widen their profits. A decision invalidating the rule would have benefited NRG Energy Inc., FirstEnergy Corp., Exelon Corp., Dynegy Inc., Talen Energy Corp., Calpine Corp., Public Service Enterprise Group and American Electric Power Co.
Major energy consumers, including aluminum producer Alcoa Inc., backed the rule, as did smart-grid companies such as EnerNOC Inc., which help large consumers reduce their power use.
The case centered on the U.S. Federal Power Act, which lets FERC regulate rates only at the wholesale level and leaves retail regulation in the hands of the states.
Justice Elena Kagan wrote the court’s majority opinion. Justices Antonin Scalia and Clarence Thomas dissented. Justice Samuel Alito didn’t take part in the case because of a stock holding.
The number of demand response (DR) sites worldwide will reach 21.9 million by 2020, growing from 10.3 million in 2013, finds a new report from Navigant Research.
This year, the report says total load curtailment in the world from DR programs is estimated to be 57,764 MW. By 2020, global load curtailment is expected to reach 140,472 MW at a compound annual growth rate (CAGR) of 13.5%.
Although DR is a relatively mature market in the U.S., the report says DR programs are just getting under way in most other regions, including Europe, Asia Pacific, the Middle East and Africa. In the years ahead, countries in these regions promise to develop robust DR markets with solid growth prospects.
“While the majority of DR sites today are residences located in North America, the technology will expand rapidly to include homes, commercial buildings and industrial facilities in many countries,” says Marianne Hedin, senior research analyst with Navigant Research. “The adoption of automated demand response (ADR) looks especially promising, particularly in Asia Pacific, which will most likely leapfrog less advanced technologies, moving directly to ADR as the market accelerates.”
Both energy demand and reliance on intermittent renewable sources like wind and solar power are growing in many countries. The report says these developments make it necessary for utilities to balance the grid through DR on a continuous basis (frequently second by second) to address constant power fluctuations on the grid. In addition, new technologies (e.g., smart meters) and open standards like OpenADR and Smart Energy Profile 2.0 are opening up new DR opportunities.
For more information about Navigant Research’s report is available here.
via Renew Grid: Content / New & Noteworthy / Number Of Demand Response Sites To Double Worldwide By 2020.
Is your company participating in Demand Response programs? Contact Richards Energy Group for more details.
We are offering a free webinar, entitled “Doing the Greater Good for the Grid”, to learn more about our PJM Demand Response Program on Thursday, February 9 at 10 a.m. and 2 p.m.
To register for “Doing the Greater Good for the Grid” webinar, please sign up for your preferred time below.
Thu, Feb 9, 2012 10:00 AM – 11:00 AM EST
Thu, Feb 9, 2012 2:00 PM – 3:00 PM EST
Who should attend?
Business owners, operations, property and facility managers, as well as anyone involved in energy management processes looking for cost-saving incentives that will improve efficiency and improve their bottom line.
Why should you attend?
Many businesses fail to take full advantage of energy programs that can reduce their energy cost. This program is unique in that it pays you whether or not you are required to participate.
What will be covered?
Richards Energy Group will review how businesses can take advantage of the PJM Demand Response Program, enjoy cost savings and incentive payments for participating. Attendees will learn how to register before the mid-February deadline, and what is required to be in the program.
Who will present?
Frank Richards, P.E., C.E.P.
President and C.E.O. of Richards Energy Group