The 2021 Power Plan found the total achievable technical DR potential is 3,721 megawatts for the summer period and 2,761 megawatts for the winter period by the end of the 20-year plan horizon. The achievable technical potential, also referred to as the market potential, represents the amount of impact that is likely achievable through programs, accounting for program and event participation rates. This represents approximately 12 percent and 9 percent of summer and winter peak loads, respectively.[1] This does not include additions or reductions in potential due to adoption of energy efficiency measures (e.g. increased adoption of smart thermostats through energy efficiency will increase the potential of a bring-your-own-thermostat DR product and reduce it for the heating or cooling switch product). This interaction is captured in the resource strategy analysis, and more information can be found here.

The supply curves for the summer and winter DR potential are provided in figures below. The chart represents the net levelized cost (in 2016 dollars) of each product, increasing from the bottom up. The incremental potential for a given product is given in blue, while the cumulative potential of all less expensive products is given in orange. The table below provides the full name of the products that are abbreviated in the charts.

Demand Response Achievable Technical Potential in 2041 with Net Levelized Cost - Summer

Demand Response Achievable Technical Potential in 2041 with Net Levelized Cost - Winter

List of DR Products – Abbreviated and Full Name

AbbreviationResidential ProductAbbreviationNon-residential Product
 ResCPPResidential Critical Peak Pricing ComCPPCommercial Critical Peak Pricing
 ResTOUResidential Time of Use IndCPPIndustrial Critical Peak Pricing
ResEVSEDLCSwch  Residential Electric Vehicle Supply Equipment Control IndRTPIndustrial Real Time Pricing
ResERWHDLCGrd    ResERWHDLCSwchResidential Electric Resistance Water Heater Control Grid and Switch LgIrr
 SmMedIrr
Irrigation Control Large and Small/Medium Farms
ResHPWHDLCGrd    ResHPWHDLCSwchResidential Heat Pump Water Heater Control Grid and SwitchSmComTstatSmall Commercial Bring-Your-Own-Thermostat
ResACSwch
ResHeatSwch
Residential AC and Heat Control SwitchComCurtail     Commercial Curtailable Load
ResBYOT      Residential Bring-Your-Own-Thermostat IndCurtailIndustrial Curtailable Load
  SmComCoolSwch
SmComHeatSwch    
Commercial Small Building Control Switch Cool and Heat
 DVR*Demand Voltage Regulation MedComCoolSwch
 MedComHeatSwch
Commercial Medium Building Control Switch Cool and Heat

* DVR is a cross-sector product, not solely residential

Sector specific potential is below for residential, commercial, industrial, agricultural and the utility distribution system.  

Residential Sector

Products considered in the residential sector provided in the table below broken out by season and type (controllable in black text and price-responsive in italicized text). The assumptions for the residential controllable products is available here and the price- responsive products can be found here.

Residential Demand Response Products by Season

Summer OnlyWinter OnlyDual Season
AC SwitchHeating SwitchBring-Your-Own-Thermostat
  Water heater (heat pump and electric resistance) – switch
  Water heater (heat pump and electric resistance) - grid-connected
  Electric Vehicle Supply Equipment control
  Time-of-Use
  Critical Peak Pricing

The total potential by net levelized cost for the residential sector is provided in the tables below.

Residential Demand Response 2041 Potential - Summer

ProductAchievable Potential (MW)Net Levelized Cost (2016 $/kW-yr)
Critical Peak Pricing251$1
Bring-your-own-thermostat63$13
Time-of-use214$14
Electric resistance water heater control – grid enabled867$43
Electric resistance water heater control - switch76$62
AC Switch183$77
Electric vehicle supply equipment control72$136
Heat pump water heater control – grid enabled6$166
Heat pump water heater control – switch1$250

Residential Demand Response 2041 Potential - Winter

ProductAchievable Potential (MW)Net Levelized Cost (2016 $/kW-yr)
Critical Peak Pricing125$1
Bring-your-own-thermostat44$13
Time-of-use90$14
Heat Switch549$35
Electric resistance water heater control – grid enabled867$43
Electric resistance water heater control - switch115$62
Electric vehicle supply equipment control72$136
Heat pump water heater control – grid enabled13$166
Heat pump water heater control – switch1$250

Commercial Sector

Products considered in the commercial sector are provided in the table below broken out by season and type (controllable in black text and price-responsive in italicized text). The assumptions for the commercial controllable products can be found here, while the assumptions for the price responsive products can be found here.

Commercial Demand Response Products by Season

Summer OnlyWinter OnlyDual Season
AC Switch (Small & Med buildings)Heating Switch (Small & Med buildings)BYOT (small buildings)
  Demand Curtailment (med & large buildings)
  Critical Peak Pricing

The total potential by net levelized cost for the commercial sector is provided in the tables below.

Commercial Demand Response 2041 Potential - Summer

ProductAchievable Potential (MW)Net Levelized Cost (2016 $/kW-yr)
Critical Peak Pricing134-$5
Medium Building AC Switch48$12
Demand Curtailment39$17
Bring-your-own-thermostat23$27
Small Building AC Switch15$82

Commercial Demand Response 2041 Potential - Winter

ProductAchievable Potential (MW)Net Levelized Cost (2016 $/kW-yr)
Critical Peak Pricing55-$5
Medium Building Heat Switch16$12
Demand Curtailment33$17
Bring-your-own-thermostat14$27
Small Building Heat Switch17$36

Industrial Sector

Products considered in the industrial sector are provided in the table below differentiated by type (controllable in black text and price-responsive in italicized text). Note, all DR products for the industrial sector are dual season. The assumptions for the industrial controllable product can be found here, while the assumptions for the price responsive products can be found here.

Industrial Demand Response Products by Season

Dual Season
Demand Curtailment
Critical Peak Pricing
Real Time Pricing

The total potential by net levelized cost for the industrial sector is provided in the tables below, broken out by season.

Industrial Demand Response 2041 Potential - Summer

ProductAchievable Potential (MW)Net Levelized Cost (2016 $/kW-yr)
Critical Peak Pricing109$2
Real Time Pricing24$4
Demand Curtailment174$11

Industrial Demand Response 2041 Potential - Winter

ProductAchievable Potential (MW)Net Levelized Cost (2016 $/kW-yr)
Critical Peak Pricing49$2
Real Time Pricing11$4
Demand Curtailment151$11

Agricultural Sector

For the agricultural sector, the DR product considered includes direct load control of irrigation systems. This is split for large (greater than 2000 acres) versus small/medium farms (less than 2000 acres). From the 2018 U.S. Department of Agriculture Irrigation and Water Management Survey, about 35 percent of irrigated acres in the region fall into the “large” category. In addition, the analysis limited eligibility to customers that have at least 100 horsepower of pumping load. About 80 percent of large farms are assumed to have pumping load greater than 100 horsepower and 50 percent of small/medium farms have greater than 100 horsepower pumping loads. This translates to program eligibility of 28 percent for large farms and 33 percent for small/medium farms. Additional details on the assumptions can be found here.

The total 20-year achievable technical potential by net levelized cost for the agricultural sector is in the table below. Note, the potential is solely available in the summer and is all utility controllable.

Agricultural Demand Response 2041 Potential - Summer

ProductAchievable Potential (MW)Net Levelized Cost (2016 $/kW-yr)
Small/Medium Farms464$5.75
Large Farms394$4

Utility Distribution System

Many utilities can reduce to voltage on their primary distribution circuits, but still be within the acceptable range defined by the American National Standards Institute. This voltage reduction has minimal impact on the end-use customer and results in lower losses, thus saving energy. This could be done on a permanent basis (Conservation Voltage Regulation [CVR]) or during short-duration events (Demand Voltage Regulation [DVR]).[2] DVR is included in the DR supply curves. Product assumptions can be found here.

The total potential for DVR is 561 MW in the summer and 538 MW in the winter, both at a net levelized cost of $0.10 per megawatt-year. Note the seasonal differences reflect differences in peak summer versus winter loads.


[1] Based on CanESM2 climate change, base economic scenario

[2] DVR could be used to either decrease or increase loads, depending on system needs. For the 2021 Plan, it was only modeled as a load reduction product.