this post was submitted on 28 Sep 2023
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Of course it is.
We have more energy consuming stuff than ever. But do you ever see NEW substations being built? NEW long range power lines? I don't.
Around here, the utility has a deal- they will sell you a top of the line $400 color touchscreen WiFi thermostat that talks to Alexa and displays the weather report and does a bunch of other shit, for $10 (not a typo). In exchange, you let them remotely shut off your AC if the grid gets overloaded.
Why do they do this? Because a few truckloads of thermostats (with a bulk discount) are a fuckton cheaper than actually upgrading the grid.
And so we hear about grid overload days and possible brownouts and incentives to shut stuff off as if this is the way it's supposed to be. But the reality is these problems only exist because utilities don't keep ahead of necessary upgrades. After all, why spend the money when there's shareholders to answer to?
This is not a remotely accurate assessment of demand side management programs. Such programs are overwhelmingly required of IOUs by states since they tend to be cheaper than infrastructure upgrades for everyone. Utilities on the other hand tend to prefer infrastructure upgrades because they get a guaranteed rate of return typically. You have this completely backwards.
Interesting. Do you have any sources on this or more reading material behind it? I have yet to really see any things suggesting utilities are asking to do CapEx on infrastructure improvements but are being told no.
I think I gave off the wrong impression that these are more linked than they are, sorry. Many states require cost effective EE because it's generally good policy (benefits outweigh costs), and some of those benefits include not having to build new capacity. PUCs generally also support infrastructure investments, and with guaranteed rates of return on most T&D for example, it's a no brainer. So states are often doing both, and there are varying options about the merits of each. To your question though, one notable recent example is the gas pipeline that Gov Cuomo vetoed, which led to more gas efficiency programs in downstate NY.
I'm also embarrassed to report I can't think of a good source for you since I'm in the industry, other than primary sources like utility financial statements, rate cases, state regulations, etc. Hope this was helpful - it's a fascinating industry.
It's not a new idea. They used to do RF transmitters back in the 90s