Demand-Side Management Strategies Flashcards
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Read the first 7 Demand-Side Management Strategies flashcards as text
A utility's integrated resource plan (IRP) treats DSM as a resource equivalent to supply-side generation primarily because:
Answer: Negawatts from DSM can defer or replace capacity additions
IRP treats DSM as a 'negawatt' resource because avoided demand can defer or eliminate the need to build new generation or T&D capacity.
Which pricing structure charges customers based on their individual contribution to the system's highest peak demand period?
Answer: Coincident peak demand pricing
Coincident peak demand charges are based on a customer's demand during the utility system's highest peak hours, directly pricing their share of capacity costs.
Demand-side management programs for industrial customers most commonly target which end-use?
Answer: Compressed air systems and motor drives
Compressed air systems and variable-speed motor drives represent the largest electricity-consuming end-uses in industrial facilities and offer significant DSM potential.
Under an energy efficiency portfolio standard (EEPS), utilities are required to:
Answer: Achieve a specified percentage reduction in electricity sales through DSM
An EEPS mandates that utilities achieve a defined percentage reduction in electricity demand or sales through energy efficiency programs.
When calculating gross savings from a DSM program, an evaluator should use which baseline?
Answer: What the customer's energy use would have been without the program
Gross savings are measured against a counterfactual baseline representing what consumption would have been absent the program intervention.
Which of the following is a key limitation of real-time pricing (RTP) as a DSM strategy?
Answer: Customers must have smart meters and the ability to respond to price signals
RTP requires advanced metering infrastructure and customer automation or engagement to respond to volatile price signals, limiting its applicability.
The 'rebound effect' (or takeback effect) in energy efficiency programs occurs when:
Answer: Improved efficiency lowers operating costs, encouraging greater energy use
The rebound effect occurs when energy cost savings from efficiency improvements lead customers to increase their service consumption, partially offsetting the savings.