How Smarter Electricity Use Can Support a Clean Energy Future

The document examines the potential of 'flexible demand'—shifting the timing of electricity use—to support a clean energy transition. It contrasts this with traditional demand response, highlighting how advanced metering and smart technology can align consumption with renewable energy production, reduce the need for natural gas 'ramp' plants, and avoid costly infrastructure upgrades. The author identifies key flexible end uses, such as electric vehicle charging and space heating, and proposes three mobilization models: behavioral, price-exposed, and subscription-enrolled. It concludes with recommendations for regulators to align utility incentives and ensure equitable program design.

• Flexible demand differs from traditional demand response by expanding the scope of modifying electricity use across various timeframes—seconds, minutes, hours, or days—to benefit the grid without significantly altering the customer's experience.
• The deployment of smart meters has increased significantly, growing from 6.7 million in 2007 to 72 million in 2016, representing nearly 50 percent of all meters according to FERC 2018 data.
• Flexible demand can address three primary grid needs: maximizing alignment with renewable production (reducing curtailment), precluding the use of polluting natural gas plants for system ramps, and replacing fossil fuel resources for ancillary services like frequency regulation.
• Specific high-potential flexible end uses include space heating and cooling (which accounts for about half of residential energy consumption), electric tank water heaters, electric vehicle charging, and behind-the-meter batteries.
• Utilities can mobilize flexible demand through three program types: behavioral (information-based), price-exposed (dynamic pricing), and subscription-enrolled (direct utility or third-party control in exchange for compensation).
• A national-level assessment suggests that cost-effective demand response could more than triple by 2030, reaching an annual value exceeding $14 billion.
• To overcome utility business models that may conflict with demand-side interventions, the document suggests transitioning to performance-based ratemaking and decoupling utility revenues from retail sales.

APA

McNamara, J. (2020). How Smarter Electricity Use Can Support a Clean Energy Future. Union of Concerned Scientists. https://www.ucs.org/sites/default/files/2020-01/Flexible-Demand-Opportunity-Fact-Sheet.pdf

Chicago

McNamara, Julie. How Smarter Electricity Use Can Support a Clean Energy Future. Union of Concerned Scientists, 2020. https://www.ucs.org/sites/default/files/2020-01/Flexible-Demand-Opportunity-Fact-Sheet.pdf.

Wikipedia

{{cite report |last1=McNamara |first1=Julie |title=How Smarter Electricity Use Can Support a Clean Energy Future |publisher=Union of Concerned Scientists |date=January 2020 |url=https://www.ucs.org/sites/default/files/2020-01/Flexible-Demand-Opportunity-Fact-Sheet.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mcnamara2020how, author = {McNamara, Julie}, title = {{How Smarter Electricity Use Can Support a Clean Energy Future}}, institution = {Union of Concerned Scientists}, year = {2020}, month = jan, url = {https://www.ucs.org/sites/default/files/2020-01/Flexible-Demand-Opportunity-Fact-Sheet.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }