Full Title: The Use of Price-Based Demand Response as a Resource in Electricity System Planning
Author(s): Juan Pablo Carvallo and Lisa C. Schwartz
Publisher(s): Berkeley Lab
Publication Date: November 5, 2023
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Utilities have conducted integrated resource planning (IRP) for decades to consider both supply- and demand-side resources to meet bulk power system needs. More recently, an increasing number of states are requiring regulated utilities to file plans that identify distribution system needs, including DERs that can avoid or defer certain types of traditional utility investments cost-effectively. Price-based demand response (DR) is an underutilized resource that could substantially contribute to load flexibility. This brief finds that evaluation of price-based DR as a solution to meet identified electricity system needs is uncommon at both planning processes. Where price-based DR is considered as a solution, methodologies are often deficient in the characterization and treatment of this resource. Based on the analysis of utility filings and state requirements, this brief provides recommendations for improving consideration of price-based DR in the context of long-term planning for bulk power and distribution systems.