Demand Flexibility Valuation Report

A dynamically built digital report by the Active Efficiency Collaborative

Demand flexibility, also sometimes referred to as load flexibility, is the capability to reduce, shed, shift, or modulate electricity consumption in real time in a way that is beneficial to both consumers and the power system.

Demand flexibility includes conventional sources of demand response (DR), such as air-conditioning direct load control, which have been relied upon for decades primarily to reduce system peak demand during a limited number of hours per year. But demand flexibility also more broadly includes new opportunities for managing load to provide a wider range of grid services, following the rapid emergence of consumer-oriented energy technologies such as advanced metering infrastructure (AMI), smart appliances, electric vehicles, behind-the-meter battery storage, behavioral tools, and automated load control for large buildings.

Build Your Report

This tool provides a concise overview of considerations when assessing the value of demand flexibility. To use the tool, indicate the general nature of your interest in demand flexibility, and you will be provided with guidance tailored to your interest.

Choose at least one option from each of the four categories and let the tool create a customized report, including case studies relevant to your selections.

Choose at least one option from each of the four categories to build your report.

Demand Flexibility Valuation Report

Based on your selections, the following are important considerations when measuring the value of demand flexibility. Please visit this site regularly, as it is a dynamic source of information on demand flexibility that will continue to be updated.

Further Reading

The following resources provide more detail on the issues addressed in this report:

  1. U.S. Department of Energy, “A National Roadmap for Grid-Interactive Efficient Buildings,” May 2021.
  2. The Brattle Group, “Valuing Demand Response: International Best Practices, Case Studies, and Applications,” prepared for EnerNOC, January 2015.
  3. Alliance to Save Energy, “Improving Equity and Inclusion in Energy Efficiency and Demand Flexibility Programs,” 2021.
  4. SEEAction, “Determining Utility System Value of Demand Flexibility from Grid-Interactive Efficient Buildings,” prepared by Tom Eckman, Lisa Schwartz, and Greg Leventis, Lawrence Berkeley National Laboratory, April 2020.
  5. The Brattle Group, “The National Potential for Load Flexibility: Value and Market Potential Through 2030,” June 2019.
  6. Rocky Mountain Institute, “The Economics of Demand Flexibility: How ‘Flexiwatts’ Create Quantifiable Value for Customers and the Grid,” August 2015.
  7. Lawrence Berkeley National Laboratory, “2025 California Demand Response Potential Study – Charting California’s Demand Response Future,” March 2017.
  8. Alliance to Save Energy, “Why Demand Flexibility is Essential for Decarbonization,” August 2021.
  9. Alliance to Save Energy, “Guiding Principles to Enhance Efficiency and Demand Flexibility Through Performance-Based Utility Programs,” October 2020.
  10. Alliance to Save Energy, “Innovative Partnerships Can Unleash the Full Potential of Distributed Energy Resources,” June 2020.

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This focus area project was done in collaboration with the Brattle Group.

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