Sorry, you need to enable JavaScript to visit this website.
Skip to main content
Home
    • Contact Panasonic
    • Save Page
    • Home
    • Green Living
    • Homeowner Insights
    • Avoiding blackouts in California through load flexibility
    Back to Resource Center

    Avoiding blackouts in California through load flexibility

    • Contact us
      • Twitter
      • Facebook
      • Linkedin
      • Email
    Charging System - EV

    Avoiding blackouts in California through load flexibility

    Ryan Hledik Ahmad Faruqui

    Energy experts consider solutions to rolling blackouts by encouraging flexibility and cooperation from consumers on changing when electricity is consumed. How does fewer power outages, more resilience and greater grid independence sound? Find out how Panasonic's EverVolt can get you there.

    In mid-August, Californians experienced blackouts on a scale not seen since the energy crisis of 2001. That threat continues as we approach the wildfire season.

    Back in 2001, blackouts happened because the retail price that customers paid for electricity did not rise as the cost of providing that electricity increased in wholesale markets. Prices balance demand and supply in markets for most products and services in America.

    After the crisis, many economists argued that the time had come to introduce price responsiveness to electricity. For several reasons, it didn't happen.

    On August 14-15, the California grid operator resorted to blackouts because a heat wave led to high electricity demand at a time when it was not possible to import power from neighboring states since all of them were facing the same heat wave. Additionally, one power plant unexpectedly shut down and the wind, which powers many generators, stopped blowing. To make matters worse, cloud cover reduced solar generation.

    One solution is to build more power plants – some of which would be used only a few hours of the year. There is a better option that would prevent blackouts while saving Californians money.

    Air conditioning units outside an apartment complex

    It's called load flexibility. It doesn't require that customers use less energy. It involves changing when electricity is consumed. That change in electricity consumption could be driven by response to electricity rates that vary by time of day. Or, customers could be paid to allow limited control of certain appliances.

    Central air conditioning is the biggest user of electricity during a heat wave. If customers can precool their homes by adjusting their thermostat downwards by a few degrees when prices are low and raise it by a few degrees when prices are high, there will be no need to resort to cut off their power supply. An increasing number of homes have installed smart thermostats that can communicate with the grid and automatically make the necessary adjustments when prices rise. A utility in Oklahoma already has such a program in place. 

    Similarly, electric water heaters can be automated to communicate with the grid in response to real time conditions, heating the water at the times when it's most beneficial to the power system without risking a shortage of hot water for the customer. Electric vehicles could be charged in a similar manner. 

    Woman Adjusting Digital Central Heating Thermostat Using Smart Watch At Home

    With load flexibility, everyone wins since demand is being controlled voluntarily only during those hours when supply shortages exist, virtually eliminating the need for involuntarily cutting off power. The lights stay on because customers who are in a position to change their consumption of electricity save money by doing so.

    Load flexibility can be readily implemented today, unlike the situation in 2001. More and more customers are installing smart thermostats and an increasing number are buying electric vehicles. Many are installing solar panels on their roofs paired with batteries. Similar opportunities exist in commercial buildings and factories.

    Blackouts are not an issue just facing California. They are a national issue. For the U.S., our research has found that load flexibility can lower electric bills by $15 billion annually and also mitigate the risk of blackouts.

    Hot Purple Energy

    Photo credit: Hot Purple Energy

    Flexible load can provide environmental benefits as well. By reducing the curtailment of excess wind and solar output, and responding rapidly to fluctuations in output from these resources, load flexibility can play a key role in the essential transition to decarbonized power supply.

    Achieving the benefits of load flexibility will require a significant change in thinking. Regulators should encourage utilities to offer load flexibility. Utilities should educate customers and provide them the financial incentives to modify their load. Grid operators should factor the capabilities of load flexibility into their operations. Only then will we have relegated blackouts to the history books.

    This is a contributed article by Ryan Hledik and Ahmad Faruqui, economists with The Brattle Group.

     

    This article was written by Ryan Hledik and Ahmad Faruqui from Utility Dive and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

    Related Posts

    Businesswomen discussing by table in office
    Financial & Incentives

    How to accelerate solar adoption for the underserved

    As solar panels have become more affordable, there's no reason home solar has to be exclusive to upper income households.
    Learn more
    Caucasian family sitting in a teepee, reading stories with the flashlight in dark room with toys and pillows. Caucasian models. Home comfort, family, love, Christmas holidays, storytelling time.
    Homeowner Insights

    How Homeowners Can Prepare For Rolling Blackouts

    Common questions and answers about rolling blackouts and solar-powered homes.
    Learn more
    Older female farmer with granddaughter
    Sustainability & Environment

    Mayors unveil $60B plan to support Midwest energy transition

    As fossil fuel use continues to decline, Midwest officials want to build on the green movement foundation.
    Learn more
    Buildings & Roof Tops Of Bisbee, Arizona
    Trends & Technology

    A $100 million investment will fund the largest ‘virtual power plant’ in the U.S.

    Combining innovative thinking and technology, companies are redefining how energy can be saved, re-distributed and consumed more efficiently.
    Learn more
    Brush Fire Threatening Homes
    Trends & Technology

    Why are Home Batteries Becoming so Popular?

    More homeowners are choosing to install battery storage. Here are the reasons behind the growth.
    Learn more
    Happy mother talking to her baby while working at home. unpublished
    Financial & Incentives

    Financing Renewable Energy: It's Easier Than You Think

    As demand for home batteries surges, new financing options provide greater flexibility for homeowners.
    Learn more
    Foreman shows house design plans
    Homeowner Insights

    What to Expect During Your Solar Panel Installation

    Expert installers: Here's how we prepare your home for a successful solar installation.
    Learn more
    electric meter resize
    Homeowner Insights

    The Sun Is Shining and Your Meter Is Running Backwards

    When your solar panels generate more power than you consume, the utility company pays you for the surplus.
    Learn more
    woman at home using computer
    Homeowner Insights

    Home batteries keep you powered-up when the power goes out

    With more people working from home, maintaining an uninterrupted power supply is important for both work and play.
    Learn more
    A father and his children having their breakfast at home
    Financial & Incentives

    Here’s how much it would cost to move every home in the U.S. to zero-carbon energy

    Is it feasible to power every American household with emissions-free renewable energy?
    Learn more
    hand out to the sky
    Homeowner Insights

    Misconceptions About Solar Power

    Breaking down the fact and fiction of investing in a home solar system.
    Learn more
    Group of friends sitting in backyard on sunny summer evening
    Financial & Incentives

    Home Solar Incentives To Take Advantage of in 2020

    Thanks to generous federal and state tax credits, you can reduce your carbon footprint and your utility bill at the same time
    Learn more
    Back to Trends
     

    Thank you for your submission. A Panasonic representative will contact you.

    • About Us
    • News
    • Careers
    • Investor Relations
    • Social Impact
    • Contact Us
    • Do Not Sell My Data

    Get the Latest on Panasonic Trends

    Thanks for signing up!

    Connect with us

    • Twitter
    • Facebook
    • Linkedin
    • Instagram Link
    • Youtube

    Select Country/Language

    • United States - English
    • Canada - English
    • Canada - Français
    © 2020 Panasonic Corporation of North America. All Rights Reserved.
    • Privacy Policy
    • Cookie Policy
    • Terms
    • Panasonic Global
    • Consumer
    • Industrial
    Reviewed by Accessible 360
    Reviewed by Accessible 360