Controlling the demand stack: Uplight's methodology for expansion in load capacity

In the rapidly evolving world of energy, Uplight, a leading company in the sector, is spearheading a new frontier - developing innovative rate designs for electrification technologies. According to Hannah Bascom, the Chief Growth Officer at Uplight, this is the key to unlocking the potential of other technologies.

Uplight's primary goal is to integrate demand-side resources into the core operating systems of the electric grid. This integration is crucial for utilities facing increased demand, as discussed by Bascom during a recent interview on the With Great Power podcast.

One utility leading the charge in this area is Puget Sound Energy (PSE). They are deploying a multi-asset virtual power plant (VPP) expected to provide significant flexible capacity, supporting Washington state's mandate to reduce peak load by 10% through demand flexibility.

PSE's time-of-use rate program has achieved significant results, with 94% of participants favorably shifting their energy use during peak times. This shift has been instrumental in reducing overall demand and contributing to customer satisfaction, with approximately two-thirds of PSE's customers being on time-of-use rates with demand charges, who report the highest satisfaction levels.

The deployment of VPPs could support rapid electrification while reducing overall grid costs by $10 billion annually, as suggested by a DOE report. This cost reduction is vital, considering the United States needs approximately 200 gigawatts of additional peak capacity by 2030, according to a 2024 Department of Energy report.

However, traditional approaches where efficiency, rate design, and demand response programs operate independently are not sufficient. Rethinking how utilities design and implement customer programs is necessary to meet today's challenges. Uplight's focus is on technology convergence, breaking down traditional program silos.

The goal is to enable the demand stack through having a unified view into what programs exist for customers, what are the megawatts under management or megawatt-hours under management, and then what's the customer view to forecast and respond as grid congestion comes up.

Duke University's analysis introduced the concept of "curtailment-enabled headroom," the ability to add substantial load to the grid if those loads can be briefly reduced during peak periods. This concept underscores the importance of demand flexibility in managing grid congestion.

Bascom sees opportunities at the local distribution level, where demand-side management can offset expensive upgrades. Uplight's platform approach provides utilities with a "single pane of glass" to manage all customer programs and resources, facilitating this local-level management.

The integration of programs is essential for coordination with rate programs, VPPs, and demand response programs. PSE's leadership team is considered innovative, paving the way for other utilities to follow suit.

Despite the progress made, the utility that has successfully provided an integrated offering for customer retention and virtual power plants, thereby complying with Washington state's law requiring a 10% reduction in peak load, is not explicitly named in the provided search results.

For those interested, the full interview with Hannah Bascom can be found on the With Great Power podcast, a co-production of GridX and Latitude Studios. The podcast offers insights into the future of energy and the role of companies like Uplight in shaping that future.