Energy Efficiency and Demand Response: Savings Through Synergy
Buildings have vast potential to save energy, reducing costs for owners and easing stress on electric utility systems. Energy efficiency (EE) and demand response (DR) can help significantly. The two are quite different: EE reduces kilowatt-hours used, while DR reduces kilowatts of demand during peak hours of the day. Yet both yield benefits in the one measure that matters most: dollars.
DR pays customers for reducing load during events, while EE involves an initial investment repaid over time through lower energy bills. The marriage of the two can provide synergy: Combining the revenue stream of DR with the energy savings from EE, building owners can get better financial outcomes than with either approach alone.
Yet this type of integration has yet to reach the mainstream, as technical, organization and policy barriers stand in the way. New models for integrating DR and EE can unlock all the promised benefits of both. Measures that can help include case studies (success stories) that build credibility, utility pilot programs, and improved measurement and verification (M&V) protocols for programs and projects.
Learn more by downloading the Issue Brief: Energy Efficiency and Demand Response.