Texas faces unique energy challenges as it balances economic development with grid stability. Our newest analysis, prepared for the Texas Association of Business and South-Central Partnership for Energy Efficiency as a Resource (SPEER), reveals the untapped power of demand side management in the ERCOT market.
Key takeaways from the report include the following:
- Supply-Demand Balance Challenge: ERCOT has successfully met rapid demand growth through its efficient “connect-and-manage” interconnection process, but faces unprecedented challenges from accelerating demand driven by data centers, population growth, and industrial expansion.
- Demand-Side Solutions Critical: As supply chain and transmission constraints limit new capacity additions, demand management strategies have become essential to maintaining grid reliability while controlling costs.
- Energy Efficiency Impact: Heat pump adoption can significantly reduce energy consumption while maintaining output levels, potentially eliminating load shedding during winter emergencies and saving residential customers up to $500 annually.
- Demand Response Benefits: Industrial demand response programs can reduce load shedding by 3.5GW with just 10% participation and eliminate it entirely with 50% participation, while saving industrial consumers approximately $7 million and residential customers up to $485 annually.
- Combined Strategy Effectiveness: Implementing both energy efficiency and demand response programs would substantially reduce consumer power bills while minimizing outage risks during peak system stress periods.
Download now to access the full report!
If you have any questions about our analysis or would like to learn more about our Aurora offerings, get in touch with Danielle Startsev.
