California has avoided more heatwave-driven rolling blackouts so far this week via energy conservation, demand response, backup power and batteries. Could this be a lesson in meeting long-term grid reliability challenges as clean energy grows in scale?https://bit.ly/3haRWJi
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Now let's really start using at a resource, not just after it's an emergency and asking people to sacrifice, largely without compensation, for saving the grid.https://www.recurve.com/blog/demand-flexibility-can-fix-the-california-grid …
In New York, we're creating optional three-part rates which include demand-based billing determinants in order to properly reflect the fact that homes with heat pumps, etc. have lower cost-causation than fossil fuel heated homes. These are "Beneficial Electrification" rates.
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What does lower cost-causation mean? I'm for good time of use... But retail rates concentrate all risk on the end customer. A wholesale signal can more accurately reflect grid values, and align incentives and manage riak through the market. It also enables project finance.
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"Cost-causation" measures the actual utility cost caused by the users' electricity use. High coincident peak demand causes more costs than lower peak demand. Increased off-peak demand has little, if any, cost impact other than energy cost. Rates should be cost-based.
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