Issue link: https://resources.tangoanalytics.com/i/1523348
LEVERS FOR DECARBONIZATION Grid Management This includes balancing the supply and demand of energy on the grid, especially given the variable nature of renewable sources like solar and wind. With heightened demands for cooling each summer, energy consumption patterns may witness drastic changes, straining grids and leading to power outages in many areas. Organizations must find ways of coping with higher energy demands going forward. The necessity of adopting smart grid technologies, infrastructure upgrades, and demand response programs is clearer than ever to ensure an uninterrupted power supply and resilience against extreme weather events. Demand Response Programs: Corporations can opt into demand response programs that encourage end-users to reduce or shift their energy usage during peak demand periods. These programs supply more energy to the Grid (Capacity), by monitoring times in which demand is trending upward and notifying participating entities when to curtail energy. The customer is then paid in annual demand response revenue for its capable load reduction as a resource regardless of whether a Demand Response event is called or not. It is in the best interest of businesses to look into the many demand response programs to take advantage of offerings that may occur at times when curtailing energy usage would not be affecting business operations. Depending on if you can value stack different programs, you could be getting paid up to $400,000 in a given year. In addition, when doing demand response, you are curtailing energy at the most carbon- intensive times on the grid. Certified demand response companies can quantify over the course of a set number of hours, how much carbon is avoided during that due to efforts made by clients to curtail energy usage at that time. Peak Load Management: Just one 30-minute, or 2 consecutive 15-minute periods in a year, or whatever the methodology is in your territory can drive 25-45% of the TOTAL cost of electricity. In other words, .07% of the hours in a year can drive up to 45% of your electricity cost. That's why peak load management and demand response is important. By targeting your usage at certain times, as opposed to solely focusing on reducing consumption at all times, you can cause significant impacts on overall costs and from an emissions perspective. The Peak load hours of the year are also typically the "dirtiest" from a GHG emissions standpoint. All available generation is usually dispatched to meet the highest peaks, meaning the old, dirty plants that typically can't clear the market in "normal" times get dispatched. So by curtailing load during peak load hours, you are effectively avoiding a bunch of emissions Sustainability & Energy Management Simplified