The Impact of Energy Efficiency Investments on Power System Outcomes

Abstract

Previous studies of Energy efficiency (EE) investments at the household level suggest they can be cost effective and contribute to energy security, and reductions of CO2 emissions from the electric power system. This study presents a method to cope with the imprecisions and limitations of available data on the costs and performance of residential EE investments when estimating their combined effects on regional electricity demand. It then explores the economic, reliability and environmental benefits obtained in a power system when the electrical load is reduced through EE investments. This assessment of benefits is based on a simulation of the operations of the Duke Energy Carolina and Duke Energy Progress (DEC & DEP) power system under different scenarios with varying levels of EE penetration and solar PV penetration in 2025.