Energy Bill To Increase Interest In U.S. Demand Response
Under the Senate Bill, all U.S. states will be required to conduct a process to explore and design requirements for utilities to implement energy efficiency resource programs in order to reduce annual electricity consumption and/or peak demand. The legislation also would force utilities to review and shore up the reliability of their power grids to avoid massive blackouts such as the one that darkened the Northeast in August 2003. Utilities can strengthen their transmission and distribution systems through traditional upgrades and/or through demand reduction in critical areas.
"We are very pleased to see language in the Senate Bill that addresses the fundamental need to include demand side resources as part of utilities' operating plans," stated John Mitola, Electric City Corp, CEO. "The legislation should benefit the Demand Response industry as state regulators and utility companies place greater awareness on competitive demand side solutions to deliver sustainable, affordable and reliable electric power for customers in the years to come. We have recently benefited from utility sponsored efficiency programs and expect that growth in these programs will serve as positive drivers for our Demand Response technologies. We believe that affordable electricity prices and system reliability are the two most important issues that regulators, utility operators and consumers face today and the use of smart demand reduction technologies, like our VNPP, helps address both issues."
In addition to targeting energy efficiency, the Bill places emphasis on renewable energy which helps to provide additional growth drivers for Demand Response. The Bill will now require electric utilities to obtain a minimum of 10 percent of their electricity from renewable sources such as wind, solar, geothermal and other sources by 2020. Utilities will have to rely on their respective state's renewable portfolio standards when they decide on what form those renewables should take. Several states that include Pennsylvania, New Mexico, Nevada and Illinois have already or are currently in the process of enacting legislation that includes energy efficiency/Demand Response in their respective renewable portfolio standards and/or energy efficiency plans; we anticipate that more states will enact similar legislation.
"This provision is also important and significant for Electric City," continued Mitola. "Demand Response like our Virtual 'Negawatt' Power Plan is the cleanest form of green technology because it reduces instead of produces. We continue to be very active in lobbying regulators and policy makers for Demand Response to be included in states' Renewable Portfolio Standards and we fully expect other states will pass similar standards to their Renewable Portfolios in the future. We believe that passage of the Energy Bill will enhance our ability to sell our VNPP demand reduction offering to utilities in states that adopt these measures because of our significant cost and operating advantages over other forms of renewable energy."
Electric City's VNPP Demand Response system, currently allows utilities like ComEd in Chicago and PacifiCorp in Utah to remotely control a wide range of commercial, industrial and government lighting systems over a managed and secure IP network. Through the use of the EnergySaver(TM)/GlobalCommander(R) technology, any participating utility will be able to reduce electric capacity requirements during periods of peak demand, providing instantaneous control, measurement and verification of load reduction. The 50 MW system in Chicago and the 27 MW system in Utah represent two of the largest deployments of demand control technology in the nation and are expected to incorporate roughly 2,000 to 2,500 EnergySaver(TM) systems.
Currently, Electric City is planning a rollout of a National VNPP Program for all of its customers. The Senate Bill outlines the convergence of factors that underscore the need for a program such as this. These factors include: the critical need for the inclusion of energy efficiency/Demand Response in the overall design of the nation's electricity market, the emphasis on renewable portfolio standards for all states, and focus on power grid reliability. Electric City and industry advocates strongly support the prompt passage of the long-awaited Energy Bill by the House; the Company plans its introduction of a National VNPP Program by year's end.
SOURCE: Electric City