Strategies for Cities to Reduce Grid Dependence During Peak Demand Periods

Many cities and towns in the USA have their own electric distribution company, and some even resort to generating their own power. This move toward self-sufficiency is driven by the need to reduce dependency on grid power and alleviate pressure on utility companies during peak demand times. Below, we explore various strategies and methods that can help cities and towns achieve this goal.

Understanding Grid Dependency

Grid dependency refers to the extent to which a city or town relies on its power providers to meet its energy demands. During peak demand periods—such as hot summer days when air conditioning loads are high—a city’s demand for electricity can far outstrip supply. As a result, utility companies often need to resort to load shedding or other emergency measures to ensure that the grid remains stable.

Self-Generation Strategies

One common approach to reducing grid dependency is to develop and implement self-generation strategies. These can include a mix of technologies, such as gas-fired combustion turbines, diesel generators, wind turbines, and solar panels. Each technology has its own advantages and challenges:

Gas-fired Combustion Turbines

Gas-fired combustion turbines are reliable and can quickly ramp up to meet sudden increases in demand. However, they can be costly to install and maintain, and the fuel, typically natural gas, is not always readily available or economically viable in all locations.

Diesel Generators

Diesel generators offer a quick and portable solution for emergency power needs. They are cost-effective and can be deployed relatively quickly. However, they depend on diesel fuel, which can be expensive and sometimes difficult to source, especially in remote areas.

Wind Turbines

Wind turbines are ideal for areas with consistent wind speeds and sufficient space. They have no fuel costs once installed and can generate electricity during off-peak hours as well. Wind energy is a renewable resource, but its capacity factor (the percentage of electricity it can produce compared to its full potential) can be lower than that of other sources.

Solar Panels

Solar panels are a clean and efficient way to generate electricity. They require minimal maintenance and can be integrated into existing buildings or installed on new structures. However, they rely on sunlight, which may not be sufficient during overcast days or in areas with limited exposure to the sun.

Regulatory and Financial Considerations

Implementing a self-generation strategy is not without its challenges. In areas where electric service is unbundled, city utilities may need to become generation market participants. This involves not only the technical aspects of generating power but also a series of new responsibilities and requirements, such as:

Regulatory Compliance

Cities and towns need to ensure that their self-generation operations comply with state and federal regulations. They must obtain the necessary permits, adhere to safety standards, and ensure that their generation facilities are properly maintained.

Financial Planning

The cost of installing and maintaining self-generation infrastructure can be substantial. Cities need to create a detailed financial plan that includes initial investment, ongoing operational costs, and potential revenue.

Collaborative Initiatives

Beyond individual city efforts, there are collaborative strategies that cities can adopt to reduce grid dependence:

Microgrids

A microgrid is a localized electrical grid with its own power sources and storage that can operate independently of the main grid. Microgrids can help cities reduce dependence on the grid by providing a reliable supply of power. They can also participate in demand response programs, which offer incentives to reduce electricity use during peak demand periods.

Community Energy Projects

Community energy projects involve multiple stakeholders, including residents, businesses, and local institutions, collaborating to produce and distribute energy. These projects can include community solar initiatives, which allow multiple participants to share the benefits of solar power, or other types of cooperative energy production.

Conclusion

Reducing grid dependence during peak demand periods is an essential goal for many cities and towns. By adopting a combination of self-generation strategies, adhering to regulatory requirements, and participating in collaborative initiatives, cities can improve their energy resilience and provide a more stable and sustainable power supply for their residents.

For more information on how your city can reduce grid dependence, contact local utilities or seek guidance from energy experts in your area.