The Value of a KWh durring Peak Usage ($1.25?)

[bluetinc]

I was very interested to see a new program set up locally (Washington DC Metro Area) from our power company. During peak usage days (daytime on chosen days) the power company will pay any household $1.25 for every KWh that they reduce their average consumption by. It seems that during those times, the economics of shifting energy via storage makes much more sense. By example if I could charge my S for $9 at night and feed the grid from it during that day, I would get paid $106 or net $97 from one charge cycle on the battery.

Anyway makes for interesting numbers!

Peter

Here is the link for those interested:

Peak Energy Savings Credit - Pepco

 

[TheTalkingMule]

Incentivized storage may end up being the mid-range future.

I liked the idea of making all rental cars in Hawaii EVs. Have an incentive plan like the one in your post so that storage is available when it's needed most. For instance, only charge renters for their car when it's not plugged into the grid. Leave hotel, drive directly to the North Shore and plug back in for the day. Everyone wins. That would be a nice isolated trial run for the rest of the nation.

 

[Robert.Boston]

$1.25/kWh = $1,250/MWh. There are only about 10 hours per year in the east coast markets in which the wholesale spot price of power tops $1,000/MWh. So I'm not exactly sure how/why Pepco is offering that price--but it's not a sound basis for investing in bulk storage.

 

[bluetinc]

Thanks for the info Robert. I didn't realize that the east coast markets ever made it up quite that high. I have a feeling this will, in the end, be more to do with shifting people over to a thought process of an hourly usage rate (vs. monthly readings) that come along with the new smart meters that are being installed. I'll be very curious how this program works out after the first few months. It's very easy for me to only spin my meter backwards during their 8 hour window...

Peter

 

[ItsNotAboutTheMoney]

Note:
- you receive it per kWh your baseline
- they notify when it's going to occur
My view would be that you won't get many and they won't pay out that much. I suspect it'll work because they 're eliminating expensive electricity and saving money on the infrastructure or brownouts. Throw in potential attitude shifts and it could be a cheap program.