Demand Response and Pricing
Navigant helps utilities and regulatory commissions to develop demand response (DR) strategies and programs and to evaluate the impact of those programs on both utilities and their ratepayers. By complementing these initiatives with dynamic pricing, such as time-of-use rates and real-time-pricing, clients can develop a comprehensive demand response strategy based on both direct incentives and price signals. The introduction of Smart Grid infrastructure and in-home technologies enables such initiatives by facilitating improved communications among the utility, the customer, and the grid.
We assist our clients with strategy development, pilot and program design, technology assessment, vendor selection, and project implementation. Navigant’s experience and active industry participation provides clients with insight and perspectives into how the broader industry and marketplace are developing and ultimately help to ensure successful Smart Grid investments. The Business Case for DR-enabled Smart Grid investments is supported by a variety of proprietary, user-friendly models for assessing demand response potential, optimizing dispatch of demand response resources, and performing benefit-cost testing.
Navigant has also designed and evaluated time-of-use (TOU) and dynamic rates for multiple clients.
Navigant conducted the first impact analysis for a residential day-ahead hourly rate. Based on the success of this rate as demonstrated by the analysis, regulated utilities across Illinois have adopted similar rates. Our experts used regression analysis to isolate the impact of prices, weather, time of day, and other factors on TOU rates. Our TOU Price Optimization Model allowed for “ideal” set of on- and off-peak prices and periods to achieve specified goals for peak load reductions and customer bill savings.