Automated Demand Response for Energy Efficiency and Emissions Reduction

Automated demand response is gaining increasing popularity nationally and internationally. Initial programs have been launched primarily for economic considerations: the high marginal cost of peak generation for utilities, overall energy costs for customers. But demand response also has an important role to play in mitigating climate change and otherwise addressing the adverse environmental impacts of energy production and consumption. Dynamic demand adjustment can help minimize electricity generation from fossil fuels and take better advantage of renewable generation when and where available. Automation of demand response is essential for realizing these objectives, especially given the variability and uncertainty associated with wind and solar power. Features that are critical to incorporate include rapid response to dispatches, integration of distributed storage and generation, and optimization over dynamic and uncertain forecasts. The OpenADR protocol, developed with the support of the California Electricity Commission, is emerging as a standard to facilitate the deployment of automated demand response, especially in commercial and industrial sectors. OpenADR projects are under way in the U.S., Europe, and Asia that are motivated in part by environmental concerns.