Applied Energy Group – DSM Planning Studies

AEG leverages real-world implementation experience and industry insights to accurately forecast utilities’ energy efficiency, demand response, and distributed generation markets; design and improve their demand-side and smart grid programs; and support their integrated resource planning process.

Driven by regulatory requirements as well as rate case and restructuring settlements, utility demand side management (DSM) is a critical component of a utility’s planning process. Designing and implementing effective demand-side programs requires a thorough understanding of utility customers’ energy use, the desired program effects, and market conditions. Beyond traditional planning for energy efficiency and demand response, utilities increasingly need to understand how new technologies are changing their customers’ energy use and demand profile—and how these changes will affect utility sales. Today’s demand-side management (DSM) planning and forecasting process is also challenged to keep pace with growing penetrations of grid-connected technologies such as electric vehicles (EVs), distributed generation (DG), and automated energy management.

Our industry-leading approach to DSM program planning and forecasting includes four key steps:

Market Research and Characterization

First, we assess where your market is now and define base-year energy use by segment, using both utility and secondary data, as well as AEG’s databases and tools.

End-use Modeling and Forecasts

Next, we develop a baseline end-use forecast that reflects how customer segments are expected to use energy in the absence of future utility programs. This is the metric against which program savings are compared.

Potential Studies and Efficiency Forecasts

Once a baseline is created, we layer in a detailed analysis of individual measures in each customer segment, and e review information about existing programs, if available.

Integrated Resource Planning (IRP) Support

Finally, if desired, AEG helps utilities integrate demand-side resource objectives into supply-side planning to ensure effective results when forecasting demand growth or working toward reliability and economic goals.

These steps provide a solid foundation from which to build a portfolio of programs, a platform on which to expand them and a sound benchmark for monitoring progress and market penetration.