How can Public Power Utilities manage peak load?

Advances in grid and consumer technologies mean that public power utilities now have expanded options for managing peak load, including encouraging changes in usage patterns, designing new rates, and leveraging distributed energy resources.

What is a peak load management strategy?

Each strategy for managing peak load presents potential benefits and considerations for public power utilities. Demand response, or DR, is when consumers adjust their electricity usage in response to signals from the utility. These signals can be price changes, financial incentives, or requests to reduce consumption during peak periods.

Why are grid operators worried about data center workloads?

Under this significant growth in electricity demand, grid operators are concerned about stability and reliability as data center workloads can change in seconds. Some utilities such as Dominion Energy are adding capacity to meet the growing demand while, in other cases, developers are obtaining their own power.

What happens if load growth is unmanaged?

Unmanaged load growth can strain infrastructure, increase operational costs, and undermine the reliability of electrical service. Traditional strategies for managing peak load have involved either building new transmission or distribution capacity or adding generation.

What are peak demand charges?

Peak demand charges are imposed on consumers who either use electricity during utility peak demand periods or are charged additional fees periodically (e.g., monthly) based on their highest electricity usage during a defined interval.