cover image: ENABLING INDUSTRIAL DEMAND FLEXIBILITY: ALIGNING INDUSTRIAL CONSUMER AND GRID BENEFITS

20.500.12592/612js73

ENABLING INDUSTRIAL DEMAND FLEXIBILITY: ALIGNING INDUSTRIAL CONSUMER AND GRID BENEFITS

7 Feb 2024

As the problem of balancing supply and demand becomes more complex and ongoing, however, the industrial sector is a strong candidate for shifting from discretely responding to events or responding in set peak demand hours to using a flexibility framework for planning and operations. [...] For example, a recent analysis of the interaction between growing renewables and transmission limits in the Electric Reliability Council of Texas (ERCOT) (EIA2023) found that by 2035, 53% of energy generation would be from solar and wind (compared to 31% in 2022) and that this rise in renewable penetration could lead to curtailment of a predicted 13% of wind generation and almost 20% of solar gene. [...] Accelerating the Implementation of Industrial Demand Flexibility to Support Grid Operations To support adoption of industrial demand flexibility programs, utilities and grid operators will need to clarify the business case for industrial customers and identify the industrial sectors best equipped to participate based on their operations. [...] Leading examples of industrial demand flexibility pilot programs taking this approach include the following: • The California Energy Commission (CEC) is in the process of developing the new Industrial Decarbonization and Improvements to Grid Operations (INDIGO) grant program, which is expected to target energy efficiency, industrial electrification, and other advanced energy technologies that serv. [...] Conclusion and Recommendations The value of demand flexibility for industrial energy consumers is context dependent; it relies on having the right rate structures and incentives in place to make the case to these consumers that changing their approach to energy management is worth the effort involved in changing their business practices and giving already busy operations staff an additional activi.
Pages
34
Published in
United States of America