When it comes to decarbonization planning, utilities tend to focus heavily on the supply side. But they may be overlooking one of their most powerful tools for managing a cleaner grid — demand flexibility.
Demand response and time-varying rates have been in use for decades. But many utilities still haven't fully embraced demand flexibility in their planning. As utilities push toward higher penetrations of renewable energy, the ability to shift demand becomes increasingly vital for maintaining grid stability.
The challenge? It requires a fundamental shift in mindset: from controlling power plants with knobs and dials to empowering customers through smart rate design.
"For years and years and decades and decades, the utilities' incentive has been to sell customers more of their product," says Scott Engstrom, chief customer officer at GridX. "But this idea of much more targeted demand flexibility as a requirement to manage a grid dominated by intermittent renewable resources is quite new."
In this episode, produced in partnership with GridX, Scott Engstrom talks with Stephen Lacey about why demand flexibility deserves more attention — and how utilities can better harness it as they transition to cleaner energy.
Learn more about how GridX delivers detailed analytics for time-of-use rates, helping utilities harness grid flexibility as part of their decarbonization efforts.