Case study: Targeting demand‐side management for electricity transmission and distribution benefits | Zendy

Orans Ren | Zendy; Woo ChiKeung | Zendy; Horii Brian K. | Zendy

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Case study: Targeting demand‐side management for electricity transmission and distribution benefits

Author(s) -

Orans Ren,

Woo ChiKeung,

Horii Brian K.

Publication year - 1994

Publication title -

managerial and decision economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.288

H-Index - 51

eISSN - 1099-1468

pISSN - 0143-6570

DOI - 10.1002/mde.4090150209

Subject(s) - investment (military) , plan (archaeology) , demand side , electricity , business , electricity demand , service (business) , transmission (telecommunications) , distribution (mathematics) , operations management , peak demand , industrial organization , environmental economics , operations research , economics , microeconomics , computer science , telecommunications , engineering , marketing , electricity generation , electrical engineering , geography , mathematics , law , mathematical analysis , archaeology , power (physics) , quantum mechanics , political science , physics , politics

This paper shows how a vertically integrated utility develops a least‐cost transmission and distribution (T&D) plan that considers demand‐side management (DSM) to defer capacity expansion necessary for serving growing demand. The plan is the result of applying dynamic optimization techniques to a T&D planning area in the service territory of Pacific Gas and Electric Company (PG&E), the largest privately owned utility in the USA. In the case study area alone, DSM enables PG&E to reduce the present value of its planned investment in local T&D from $112.3 million to $77.3 million over a 20‐year period.

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