Dive Brief:
- The Hawaiian Electric Companies (HECO) have filed a new proposal for demand response across their utilities' service territories with the state Public Utilities Commission (PUC) that would give customers the financial incentives to participate.
- HECO's "Integrated Demand Response Portfolio Plan" includes time-of-use rates, voltage reduction and automated demand response.
- HECO currently has several demand response initiatives in place on Oahu but these would be replaced by the new initiative, which is designed to begin in 2015.
Dive Insight:
The demand response initiative "complements" the utility's energy storage program, according to the utility's press release. HECO has already solicited proposals for utility-scale energy storage and is in the review process. Demand response and energy storage will help the utility make its grid more flexible as it seeks to incorporate greater penetrations of distributed and utility-scale renewables, as directed by the vision set out by the PUC earlier this year.
Greater demand response and time-of-use pricing can help HECO mitigate the variability of wind and solar generation and reduce the utility's dependence on oil. "With demand response, customers get financial rewards that lower their monthly bills," said Shelee Kimura, vice president for corporate planning and business development. "We reduce the use of more expensive generators to meet electricity needs. And together we can unlock the potential for more low-cost renewable energy."