Energy Efficiency and Peak Demand Reduction

A new report from the ACEEE

There are obvious overlaps between the results of energy efficiency programmes and peak load management. This is the case in spite of historically different objectives of both disciplines.

Energy efficiency programs primarily seek to reduce customer energy use on a permanent basis through the installation of energy-efficient technologies. That will, in most cases, have the positive side effect of reducing peak demand. This is especially the case if it concerns the energy efficiency of appliances that are typically used during periods of peak demand. A good example is the effect of energy efficient air conditioners on peak demand on a hot summer day.

At the other side, load management programs generally focus on either curtailing or shifting demand away from high cost, peak demand periods. Curtailing demand in most cases means improving energy efficiency.

As a result of these different focuses, the true relationship between these programmes is poorly understood. In which peak demand reductions result the energy efficiency programmes? And what are the energy savings resulting of load management?

The lack of understanding of this relationship is one of the conclusions of a new study by the American Council for an Energy Efficient Economy (ACEEE), entitled 'Examining the Peak Demand Impacts of Energy Efficiency: A Review of Program Experience and Industry Practices'. The study investigates the overlap of Energy Efficiency and Peak Demand control. It argues for utility companies and regulators to engage in more integration between both types of programmes.