Decarbonization of electricity requires market-based demand flexibility

To effectively decarbonize the electric sector, utilities will need to address the growing load shape challenges driven by the variability of many renewable resources. Behind-the-meter solutions, such as energy efficiency, demand response, electrification and storage, will play an important role in grid stability, but only if they can deliver changes in demand that meet the time and locational needs of the grid. This article will discuss how smart meter interval data, combined with open source methods and software, provide transparent measurement of savings load shapes (resource curves) that enable the integration of demand flexibility into energy, capacity and carbon markets, and as a transmission and distribution resource. This allows utilities to procure demand flexibility in the same way they procure other resources by leveraging a price signal and pay-for-performance to drive innovation and attract private investment. © 2019 Elsevier Inc.