Dive Brief:
- The Arizona Corporation Commission (ACC) has approved the continuation and expansion of Arizona Public Service’s (APS) energy efficiency and demand management programs, including the use of energy storage to cut energy consumption.
- Among the new measures approved by the ACC are incentives for smart thermostats and air conditioning control devices, rebates for business customers to install new air conditioning motors, an event-based behavioral demand response program and rebates for LED lighting.
- APS’ demand side management program is aimed at compliance with a 22% by 2020 energy efficiency standard. The company’s current portfolio of energy efficiency programs is anticipated to provide approximately 562,000 MWh of annual energy savings in 2016.
Dive Insight:
In January the ACC approved APS’ plan to develop an energy storage pilot project aimed at the residential sector. At the time, the ACC also urged APS to propose a program encouraging the deployment of energy storage outside of the pilot program.
The pilot program is part of APS' Renewable Energy Standard and Tariff (REST) Implementation Plan, which outlines how the utility will meet Arizona's Renewable Energy Standard and Tariff set in 2006. The mandate calls for utilities statewide to have 15% renewable energy in their power mix by 2025.
Under the recent approval, APS will now be able to accommodate customers who want to use energy storage to manage their demand. This $4 million program will look into how APS can use storage to reduce peak demand.
The utility will develop specific projects over the next four months, Scott Bordenkircher, an APS director, told KJZZ radio. Applications could include installing a battery for a customer with rooftop solar or in areas where there is already high solar penetration.
Bordenkircher said these kinds of projects will ultimately have a greater payoff for all ratepayers than individual customers buying their own battery systems.
