Summer planning

Barbara Vergetis Lundin writes a good article in Fierce Energy about the role that energy efficiency is playing in New England to help meet consumer demand.

Energy efficiency helps ISO NE meet 2014 summer demand

The New England Independent System Operator (ISO NE) is reporting that it expects the region to have the needed resources to meet consumer demand for electricity this summer, with electricity demand forecast to peak at around 26,660 MW at conditions of about 90 °F.

The forecast takes into account the demand-reducing effect of region-wide energy efficiency (EE) measures acquired through the Forward Capacity Market (FCM). If EE measures were not accounted for, the peak forecasts would be 28,165 MW.

“Widespread energy efficiency efforts across New England have reduced the region’s forecasted peak demand for electricity,” said Vamsi Chadalavada, executive vice president and chief operating officer of ISO New England. “Beginning June 1, the remaining units of the Salem Harbor power station in the Greater Boston area will retire, representing a reduction of 585 MW of generating capacity in the region.”

While ISO NE expects to have sufficient resources to meet consumer demand this summer, this is the first in a series of expected large resource retirements in the coming years that will reduce the available generating capacity in New England, resulting in the need for new resources. New England has a variety of capacity resource types it can use to meet peak summer demand and maintain reliability, including generators, demand-response resources, and electricity imports from neighboring power systems.

Through the FCM, 29,135 MW of generation has capacity supply obligations this summer; however, the maximum electricity output of a generator may be greater than its supply obligation. The ISO has observed that generators typically have offered the additional megawatts, above their obligation, into the energy market when prices are higher and demand is peaking. If all the region’s generators were operating at maximum capability, the total amount of electricity produced would be approximately 30,900 MW.

A total of 1,280 MW of net electricity imports and 700 MW of demand-response resources that can reduce power usage during tight system conditions were also procured through the FCM auction process.

In the summer of 2013, electricity usage peaked on July 19, 2013, at 27,379 MW. The all-time record for peak demand was set on August 2, 2006, when demand reached 28,130 MW. In New England, 1 MW of electricity can power approximately 1,000 homes.