Understanding and Leveraging Your Energy Curtailment

Less is more:

Leveraging demand response and energy curtailment.

When it comes to energy, choice is good. This can be seen with emerging renewable energy options (wind, solar, etc.) and, just as importantly, emerging ways to use less energy. When it comes to reduction, NRG’s team is using the mantra of “use less” to craft powerful solutions for energy curtailment.

Energy curtailment is a deliberate strategy aimed at reducing energy consumption during periods of high demand or supply constraints, either voluntarily or through mandatory measures, to maintain grid stability, prevent blackouts, and optimize energy usage.

For many years, widespread energy curtailment could only be accomplished through demand response (DR). Both tactical and proven to work, demand response services enabled business customers to enroll in programs based on their energy use.  To qualify for better services, companies would agree to cut back on energy usage in times of heavy stress on the local power grid, enabling energy companies to make the best use of their supply and avoid blackouts. In return, companies would earn financial incentives for their efforts. DR became a win-win solution for everyone, vital in helping reduce electricity demand during periods of peak demand. For grid energy managers and utilities, DR programs reduced stress in high-peak periods and, in the long term, reduced the need for the construction of new generation sources.

For companies, DR programs evolved to become more customized and more easily incorporated without disruption to their daily operations. Companies could even add behind-the-meter assets to supplement their energy consumption, known as asset-backed distributed energy (ABDE). This would reduce grid pressure without interrupting business services.

Embracing energy curtailment means taking an even more proactive approach to managing energy and maximizing savings all year long. Just like DR or ABDE, these solutions can have a significant and positive effect during energy “events,” such as severe weather impacting the energy grid or any other time when the grid may be experiencing challenges. They can also bring added efficiency, control, and resilience to a company’s overall energy approach. Energy storage plays a vital role in ensuring efficient energy management during such events.

Incorporating an energy curtailment mindset into energy management programs and planning can result in significant long-term impact.

Whether your company is interested in a tactical DR program, asset-backed distributed energy, or a more wide-ranging energy curtailment initiative, here are four key factors to consider:

• Information and data are key to a successful program. You need to track electricity in real-time, as this knowledge is vital in improving your energy management practices. Smart meters and other related tools from your in-house experts or external advisors play a central role.

• Develop a strategy based on your data and usage patterns that take into account your company’s overall energy needs and form your prescribed strategy for reducing energy.

• Create a point of contact at your company and a clear line of communication in managing changes and implementing the solution.

• Measure and analyze the performance of your program and adjust accordingly to maximize the efforts. This aspect directly ties into the cost savings, incentives, and overall impact you can achieve.

Overall, both demand response solutions and energy curtailment require an investment of time and longer-scale planning, with the potential for significant savings, greater control, increased efficiency, and added resilience. Partnering with an experienced organization like NRG can turn a generic concept into a tailored approach, one that capitalizes on the short-term benefits and becomes a pillar of a long-term energy solution. It can also lead you from the tactical success of a DR program to the integration of even bigger energy solutions – like onsite generation systems and energy management tools.

Contact the NRG team to learn how we can impact your energy curtailment. As your personal demand response providers, we’ll tailor your plan to match your existing and long-term energy needs.