Case study: Targeting demand-side management for electricity transmission and distribution benefits

Ren Orans 1, Chi-Keung Woo 2, Brian K. Horii 3

1Energy and Environmental Economics, San Francisco, CA, USA 2City Polytechnic of Hong Kong, Kowloon Tong, Hong Kong 3Pacific Gas and Electric Company, San Francisco, CA, USA

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Funded by:
 PG&E and EPRI

Abstract

This paper shows how a vertically integrated utility develops a least-cost transmission and distribution (T&D) plan that considers demand-side management (DSM) to defer capacity expansion necessary for serving growing demand. The plan is the result of applying dynamic optimization techniques to a T&D planning area in the service territory of Pacific Gas and Electric Company (PG&E), the largest privately owned utility in the USA. In the case study area alone, DSM enables PG&E to reduce the present value of its planned investment in local T&D from $112.3 million to $77.3 million over a 20-year period.

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Digital Object Identifier (DOI)

10.1002/mde.4090150209  About DOI