Photovoltaics for demand-side management utility markets: a utility/customer partnership approach

Photovoltaic (PV) power systems located at customer sites can be used to meet electric utility needs for demand-side management (DSM) applications. PV-DSM can also represent a high-value intermediate market for PV power in the utility sector. Maximum value for PV in DSM applications can be achieved by incorporating a dispatching capability to PV power systems (through the addition of storage). This enables electric utilities to evaluate PV power systems as a peak-shaving technology. To date, peak-shaving has been the higher value DSM application for US utilities. The authors' analysis of the value of dispatchable PV-DSM systems indicates that small-scale, customer-sited systems are approaching competitive cost levels in several regions of the USA that have favorable load matching and peak demand pricing characteristics. This paper presents the results for PV-DSM systems located within the service territories of five case study utilities.