Peak Demand Response Strategy

Navigant Consulting for Advanced Energy Economy (free download with registration)

[Energy Efficiency Markets] ,,,The report, prepared by Navigant Consulting, concluded that for every $1 spent on reducing peak demand, at least $2.62 can be saved by ratepayers in Illinois and $3.26 by ratepayers in Massachusetts.

“In the case of Massachusetts, in the high-case scenario, total avoided costs are $883 million per year,” says [Advanced Energy Economy senior director J.R.] Tolbert. “As I thought of that, I realized, ‘Wow, that’s over three-quarters of a billion in avoided cost that demand response can provide.’ …

The report also shows that states that implement peak demand policies or programs can reduce costs for customers, strengthen the reliability of electric service, and help comply with EPA’s Clean Power Plan….


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