In order to meet clean energy demands, the distribution grid may need to expand by 60% by 2030, according to the US Department of Energy. A recent Forbes article, “Can Utilities Rise to the Challenges Presented by Decarbonization?” cites a 2019 Brattle report, noting that “distributed energy resources can alleviate some of that stress, meeting 20% of the peak load by 2030.”

The Brattle report, The National Potential for Load Flexibility: Value and Market Potential Through 2030, was authored by Principal Ryan Hledik, Principal Emeritus Dr. Ahmad Faruqui, Consultant John Higham, and former Senior Research Analyst Tony Lee.

View the Article

The post Findings from Brattle Report Cited in <i>Forbes</i> Article on the Challenges of Decarbonization for Utilities appeared first on Brattle.

The post Do Customers Respond to Time-Varying Rates: A Preview of Arcturus 3.0 appeared first on Brattle.

Principal Dr. Sanem Sergici will join the “Put the Pedal to the Metal: Accelerating Smart Electrification through Rate Design” panel to discuss whether time of use rates are sufficient for shaping load, if dynamic rates or direct management approaches are needed, and more.

Register and learn more

The post Accelerating Smart Electrification through Rate Design: Dr. Sanem Sergici to Discuss at RE+ Northeast appeared first on Brattle.

The economics of heat pumps relative to natural gas heating will be an important driver of customer adoption of these technologies and will determine the extent to which ambitious building electrification goals can be met in a timely manner. Using a proprietary dataset of gas and electricity usage for 80 single-family residential customers of a large utility, the authors analyzed the customers’ heating bills before and after electrification. They found that the operating cost gap was positive (energy costs for operating the heating equipment are higher post-electrification) for all 80 customers under the default flat volumetric electricity rate. However, by moving to one of three alternative rates, all 80 customers moved from a positive to a negative cost gap, where energy costs for operating the heating equipment were lower post-electrification. The alternative rate designs considered included a rate with a higher fixed charge, a rate with time-varying volumetric charges, and a rate with time-varying demand charges. All of the modeled rate designs were cost-based, meaning they do not constitute a subsidy and would be revenue neutral when applied to the average utility customer.

The analysis shows that designing and offering alternative cost-based, cost-reflective rates to electrifying customers can be an effective lever to reduce customer costs of electrification. Moreover, the rates need not be limited to electric heating customers and can be made available to all residential customers (not just the electric heating customers) on a voluntary basis.

“Heat Pump-Friendly Cost-Based Rate Designs” was authored by Principal Dr. Sanem Sergici, Associates Akhilesh Ramakrishnan and Dr. Goksin Kavlak, and Senior Research Analysts Adam Bigelow and Megan Diehl. The full whitepaper is available on the ESIG website.

The post Brattle Consultants Analyze Heat Pump-Friendly Cost-Based Rate Designs in ESIG Whitepaper appeared first on Brattle.

View the Article

The post Dr. Sanem Sergici Quoted in Recent <i>Utility Dive</i> Article on California PUC Energy Division’s CalFUSE Proposal appeared first on Brattle.

The post Achieving the “Other” Washington’s Decarbonization Goals with Energy Efficiency and Load Flexibility appeared first on Brattle.

The report evaluates expected ratepayer energy costs in 2030 under three scenarios for different residential and non-residential customer types and compares them to costs in 2020. Overall, the study found that:

• Encouraging customers to reduce consumption of electricity and natural gas and implement energy efficiency strategies lowers customer costs and is vital to achieving clean energy goals. If customers reduce their energy consumption and invest in electrification of buildings and transportation, average bills in 2030 will fall below energy costs in 2020 by between 10–20% for most customers. It is important to note that the Brattle report only looks at the impact on energy costs and does not include customer costs associated with clean energy investments, nor any new federal incentives available through the Inflation Reduction Act.
• While the results are directionally similar for the low-income customers, the Brattle report found that low-income customers are currently experiencing a high energy burden in 2020 (7.3% excluding vehicle operating costs and 10.8% including vehicle operating costs). However, energy burden may fall or at least stay the same through 2030 despite increases in electricity and gas rates, if low-income customers adopt electric vehicles and heat pumps. This implies that energy assistance programs targeting low-income customers may be key to reduce the upfront costs of electrification and energy efficiency improvements. These programs may range from providing rebate assistance for the purchase of efficient appliances and electric vehicles to on-bill financing for income-qualifying customers to be able to undertake projects with high initial capital cost requirements.
• The report also found that the annual benefit of reduced greenhouse gas emissions from implementing the State’s clean energy programs is about $1.75 billion a year in 2030. Annual greenhouse gas emissions decrease by 30% from 2020 levels by 2030 under the EMP Achievement Pathway, which is equivalent to avoided emissions from 3.4 million homes’ energy use for one year, or 5.8 million gasoline vehicles driven for one year.

The full report, “New Jersey Energy Master Plan: Ratepayer Impact Study” – coauthored by Principals Dr. Sanem Sergici and Dr. Kathleen Spees, Associate Dr. Goksin Kavlak, and Senior Research Analyst Rohan Janakiraman – can be found below.

The post Brattle Consultants Evaluate Expected New Jersey Ratepayer Energy Costs in 2030 in New Report appeared first on Brattle.

Brattle Senior Associate Josh Figueroa will join a panel discussion, “Natural Gas Demand Response Programs – The Time is NOW!” to discuss why now is the time for natural gas demand response programs and how natural gas differs from electric programs.

Register or learn more

The post Natural Gas Demand Response Programs: Josh Figueroa to Discuss at 2022 AESP Summer Con appeared first on Brattle.

Principal Dr. Sanem Sergici will join a panel, “Grid Modernization: What Is Holding Us Back?,” to share her perspective on how to advance grid modernization investments and to discuss ways to make the transition palatable for utilities, regulators, and customers.

Register or learn more

The post Dr. Sanem Sergici to Discuss Grid Modernization Investments at Grid Modernization Forum appeared first on Brattle.