Addressing resource adequacy and grid constraints with demand response

Rising electricity demands are making it more challenging for utilities to ensure grid reliability. At the 2024 CLEAResult Energy Forum, experts shared strategies on how utilities can manage these challenges using demand response programs. This session highlighted the importance of effective customer engagement, targeted interventions, and better collaboration with grid operations teams. Below are some actionable takeaways for utilities to enhance their demand response programs and ensure resource adequacy.

Panelists:

• Mark Foreman, Director, Distributed Energy Resources at CLEAResult
• Beth Karlin, Founder and CEO at the See Change Institute
• Alexi Miller, Director of Building Innovation at the New Buildings Institute

Customer engagement strategies: What works and what doesn’t

Customer engagement is the backbone of successful demand response programs. Beth Karlin shared that utilities need to engage customers at different stages of interest. Instead of viewing customers as “enrolled” or “not enrolled,” utilities should recognize the range of engagement levels: unaware, uninterested, interested, and actively participating. Beth shared a recent survey that showed the majority of utility customers are either unaware or uninterested in these programs, and that many interested customers do not participate.  To grow demand response programs, these customer segments need to be targeted with different strategies.

To move customers along this spectrum, utilities should tailor their communication and offer incentives that address specific customer needs. One effective strategy is default enrollment, where interested customers are automatically enrolled with the option to opt out. This reduces friction and significantly boosts participation rates. Another approach is partnering with smart device retailers and installers to provide demand response education at the point of sale, ensuring that customers learn about these programs when they are already considering technology upgrades.

Targeted interventions for grid-constrained areas

For grid-constrained areas, Alexi Miller emphasized the value of using predictive modeling to understand and address specific constraints on grid-wide and feeder levels. Predictive dashboards help utilities visualize load shapes under different scenarios, making it easier to target solutions effectively. This data also supports conversations with manufacturers and stakeholders, building trust and promoting greater acceptance of demand response programs.

Collaborating with grid operations teams

Mark Foreman highlighted the need for demand response program teams within utilities to engage grid operations teams early in the planning process. These teams are often not involved until later in program implementation, which can limit effectiveness. To bridge this gap, utilities should focus on internal communication and involve grid operations teams in setting program goals and strategies.

Key Takeaways for Utilities:

• Raise awareness through targeted communication: Use partnerships and community networks to move customers from being unaware to actively participating, using different targeting for different groups.
• Utilize predictive modeling: Implement modeling tools to identify grid-constrained areas and optimize interventions.
• Enhance collaboration within the utility: Strengthen engagement between demand response and grid operations teams to align goals and improve program outcomes

Check out more lessons learned from our 2024 CLEAResult Energy Forum conference.