Weekly Brief

5 Benefits Making Demand Response a Perfect Solution for CIOs to Pick

Utilities Tech Outlook | Monday, September 09, 2019

As the utility sector is changing in several ways concerning electricity system and customer requirements, the adoption of demand response technology practices offer exclusive benefits to utility CIOs inevitably.      

FREMONT, CA: The power and utility sector is undergoing a sea change as the demand for traditional metering system is diminishing and a massive shift toward digital technologies and smart grid technology has come to play. How does the smart grid save money? How does smart grid technology better benefit an energy provider and user? These are immediate concerns to be addressed by a utility CIO. Growing investments and initiatives toward grid digitization are demanding smart grid innovations—demand response technology is one among them.

Electricity customers are seeking providers who offer the lowest prices for a fully reliable supply. Intense and growing competition between power suppliers also drives the need for utilities to deliver more services at even lower costs. Demand response schemes give price reductions, as end-users receive significant new incomes through the monetization of their load flexibility for consumption stimulation. CIOs investing in demand response technology could be an opportunity for the firms to increase operational optimization of the energy grid. Offering demand response services is becoming an unavoidable argument for utilities toward customers and prospects, who expect to benefit from their services. Following are the unique ways in which utility CIOs can benefit from demand and response technology.      

Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.

• Boosting Sales

The sales part of utility business can use demand and response technologies to expand its energy services offer to customers. It can help providers gain an edge over competitors in an increasingly cutthroat market. Ensuring customer satisfaction using innovative methods, programs, and tools mat lead to significant net reductions in electric utility bills. This helps in better customer retention and more solid revenue streams. Today, demand response is a significant argument and economic string lever for the sales activity in the utility sector.

• Trading and Optimization

The trading and optimization of utility business can benefit from new and competitive products that mitigate risk and optimize their portfolio. Key players are stressing on volatility and price strategies coupled with demand and response, which provide more benefits for utilities. The imbalance between supply and consumption can be very costly, and regulatory authorities can impose a significant charge for that. Before utilities face the prospect of such penalties, a standard solution is to turn to demand and response technology. It can help services avoid such scenarios by offering reactive and flexible techniques to balance consumption and supply. Demand and response can be a superior alternative to conventional balancing mechanisms at times of very high grid constraints.

Another benefit of demand and response for trading and optimization is that it can help utility manage its capacity charges. This can result in gains through optimization by using demand and response for ancillary services, freeing productive assets to focus on energy sales.

• Energy Generation and Distribution

Demand and response programs can empower energy plant utilization rates by catelyzing energy consumption during off-peak hours and flattening the demand curve. It also allows a generation portfolio to commit increased amounts of energy or capacity without taking on any additional contractual challenge. It might be beneficial for generators to increase demand at certain times of the day to ensure profitability. Demand response can also be used to satisfy the need through consumption stimulation or displacement.

For distribution demand and response, technology can provide an alternative to massive investment in grid reinforcement. Distributors can benefit from congestion management support and avoid high penalties during peaks.

• Grid Stabilization

Demand response has a vital role in grid stabilization during peak climates when it eases severely constrained electric grids. Future energy crisis caused by electricity demand’s exceeding system capacity can be postponed through demand response. Balancing swings in energy supply and demand with ripe demand response program can be useful when it is efficiently automated. The Federal Energy Regulatory Commission ideates the ability if demand response to avert energy crisis as so promising and as a killer application for the smart grid technology.

• Reducing Cost

Energy utilities practicing demand response program can reduce power demands to save money, sometimes a substantial amount. Electric utilities across the world see this as a resource they can invest in a lower cost than having to offer a new generation of power, particularly peak generation. Effective peak demand control helps facilities reduce energy costs and help utilities supply energy more reliably and economically. The demand response programs are now widely offered by utilities to customers, thereby encouraging them to reduce loads in response to peak demand events translating to cost savings.

The challenges in adoption of demand response program can be avoided with the right measures taken to help end-users engage in knowledge and the benefits of those programs. This can gradually and eventually make demand and response a viable and potentially attractive option for CIOs to increase efficiency and cost-savings. Hence, the future of demand response revolves around the continuation of utilities leveraging the programs to achieve energy efficiency and goals. Demand response will be a vital tool, and CIOs should urge their firms to develop and learn from demand response programs. Experienced partners can support CIOs to save significant time and effort in the design, implementation, and operation of demand response solutions to serve their needs and customers’ expectations. 

More in News

For most businesses, the final measure of success is profitability. Companies need to carefully manage their expenses while keeping their prices attractive to their customers to achieve optimal profit goals. It's a cautious balancing act that requires a high degree of business expertise. One of the crucial factors that impact the profitability of a business is operational expenses — expenses in carrying out an organisation’s day-to-day activities. The most considerable overhead expense for many companies is their electric utility bill. This isn't going to change. Energy is getting more expensive every year! Offset your uprising operational expenses with commercial solar battery storage Energy costs will not lower; they have already started going up. On top of that, businesses face higher payroll costs and extra expenses. It's time to seek ways to offset and take control of these uprising operation costs. Does your business face the following issues? • Rising electricity bills: The utility companies have modified their most expensive hours from day to evening. This means that electricity costs more between 4 pm and 9 pm, which can also be the engaged time for many businesses. The electric solutions utility cost can increase as much as 10% yearly. ‍ • Rising payroll expenses: For many businesses that hire minimum wage employees, staffing costs will nearly double, and for few, it already has had an adverse effect. Profit margins will keep on eroding. ‍ To be cost-efficient, businesses need to look for a solution that helps them lower their operational costs to maintain level prices for their customers. Battery energy storage system to save money. If your business embeds commercial solar without solar battery storage, the extra energy you produce is gone to the grid. Solar modules generate the most energy during sunny daylight hours, usually between 11 am and 3 pm. The problem is that many businesses consume more energy during evening hours. Using solar battery storage, you can store the excess energy you produce during the day and employ it in the evening when energy expenses are higher. It can also be stored, credited, and utilized during the summer months when air conditioning usage and the summer cost are highest. Here's precisely how solar energy storage works: 1. Energy production: Your commercial solar produces energy during the day, sometimes as much as 12 hours, with peak production between 11 am and 3 pm. 2. Battery charging: Extra energy generation that's not used by the business during the day is used to charge the solar batteries. 3. Bank extra power on the grid: After the batteries have been fully charged, excess energy is diverted, recorded, and stored in the utility grid for later utilization by your business. 4. Battery use: In the evenings, after the solar generation subsides, and when energy consumption and utility costs are high, you will exploit the energy you stored before in your batteries. 5. Take from the grid: Since the batteries are timely used, you can begin to use any extra power you banked before from the utility grid. 6. Energy cost savings: By using solar and battery storage, you can save more money on your electric bill each month and have more control over current and future cost increases. Check Out This:  Data Integration Solution   ...Read more
By adding value to the non-renewable energy paradigm, solar technology powers industries with carbon-free heat. Not limiting its offerings to the field of electricity, solar energy is now making strides in the industrial area. Serving various industries such as fuel, chemical, manufacturing, mining, power plants, and the like, innovative solar energy optimization technique has tremendously transformed the legacy use cases of this form of energy. Heat being the primary input for the industries, the global economic situation finds steam and thermal resource generation challenging. This is where solar energy comes into the frame. Solar energy  has seen the latest photovoltaic (PV) innovation explosion. Industries are highly relying on photovoltaic energy panels for thermal resources. Meeting the ever-growing industry demand this advanced thermal solution has considered being cost-effective and efficient. By capturing sunlight, the panels intensify the energy of the sun to generate heat and further, with the help of a condenser, they produce massive volumes of steam. In this way, PV-based solutions overtake traditional fossil fuel resources. GlassPoint Solar’s potential application is another significant development in the arena of solar technology. This application model works by allowing the sunlight to boil the water resources and generate heat and steam.   Energy Tech Solution Companies:  Advantech ,  Centric Energy Systems ,  Contemporary Energy Solutions Emerging solar technologies are capable of readily producing steam and heat at huge rates to help the industrial processes. Reducing harmful gas and chemical emissions, cutting time and costs, and scaling up production, high-tech industrial solar utility opportunities contribute to industrial process optimization. Analysts and technologists recommend increased usage of non-renewable energy sources, and in this context, solar energy seems to be the perfect solution. Many surveys state that due to many deployments and installations of renewable energy-based production units, multiple global coal and other plants are shut down. Hence, there is a drastic move toward adopting trending solar energy technologies.   Check this out:  Top Energy Tech Solution Companies ...Read more
Utility waste management helps reduce the risk of disease outbreaks and keeps communities cleaner and healthier. Utility waste management is essential for ensuring cleanliness, sustainability, and health in communities around the world. As civilizations grow and urbanize, waste generation increases, making efficient waste management and disposal more important than ever. Waste management entails collecting and disposing of trash while also combining recycling, composting, and treatment methods that reduce environmental effects. Effective utility waste management is crucial in modern civilization because it protects the environment, improves public health, conserves resources, and provides economic benefits. Utility waste management is essential for its role in protecting the environment. Improper waste disposal can devastate ecosystems, land, air, and water. During that time, they break down into microplastics that can enter food chains and water supplies, posing significant ecological risks. The improper disposal of hazardous materials—such as chemicals, batteries, and electronics—can lead to soil and water contamination. Toxins from the materials can leach into the ground and waterways, disrupting ecosystems and potentially entering drinking water supplies. Improper waste disposal can result in harmful air pollution. Burning waste in open areas or incineration facilities without adequate controls can release toxic substances, such as dioxins and particulate matter, into the atmosphere, affecting air quality and respiratory health. Waste management is crucial in resource conservation through recycling and composting programs. Many commonly thrown-away materials—such as plastics, metals, glass, and paper—can be recycled and reintroduced into the production cycle. Recycling metals reduces the need for mining, an energy-intensive and polluting process. The practices contribute to a more sustainable use of resources and minimize waste's environmental footprint. Effective utility waste management can offer significant economic benefits. The recycling industry creates jobs in sorting, processing, and selling recyclable materials. Sometimes, selling recycled materials can generate revenue for local governments and waste management companies. Investing in waste management infrastructure, such as modern landfills, recycling facilities, and waste-to-energy plants, can create long-term economic benefits. Utilities waste management plays an essential role in climate change mitigation. Waste management systems help reduce methane emissions by diverting organic waste to composting facilities and reducing reliance on landfills. Waste-to-energy technologies capture the energy stored in waste and convert it into electricity or heat, providing a cleaner alternative to fossil fuels. They also reduce carbon emissions and support the global transition to renewable energy sources. Utility waste management is critical beyond simply collecting and disposing of trash. It is vital for protecting the environment, safeguarding public health, conserving resources, and promoting economic sustainability. ...Read more
Water is one of the vital element for sustaining life on the planet. Despite the abundant presence, fresh water is available in minimal quantity. Due to the growing population in environmentally sensitive areas the world’s new water supply is critically stressed. Water management acts as a solution, but it requires diverse, accurate data promptly. Collection of data by conventional means may prove unfruitful, costly and resource intensive. But today firms are leveraging earth observation technologies such as satellite-based monitoring. This method is proven to be very useful covering large and remote areas with systematic, repetitive data captures. Achieving water security and increased resilience to hydrological extremes needs a sound understanding of water resources dynamics. This knowledge can only be based on data and observations, and it is the foundation for managing water optimally and efficiently in economic and social terms, as well as with regard for environmental impacts and downstream users. Satellite remote sensing is increasingly being used as a complementary source of information. Satellite‐based sensors are now capable of making direct and indirect measurements of nearly all components of the hydrological cycle including precipitation, evaporation, lake and river levels, surface water, soil moisture, snow, and total water storage. Satellite remote sensing also represents a critical source of information in regions with limited networks and where information on hydrologic conditions is not accessible. Landsat satellites and SPOT satellites are used for water-related applications, but the introduction of Synthetic Aperture Radar (SAR) based satellites have revolutionized the work in water mapping and management. Accurate Digital Elevation Models (DEM) are being developed to assist in determining water flows and flooding potential. NASA is conducting an exciting water management experiment named GRACE (Gravity Recovery and Climate Experiment), a pair of satellites which collects data to determine the surface mass, total water storage and derived variables. Satellite remote sensing plays a crucial role in water resources management with current and future advances promising to transform the field and support sustainable development even more in years to come. Few Water Management Companies:  Clean Water Technology , SAYA Life , Wiseconn ...Read more