Demanding a Better Grid: How Demand Management Can Accelerate the Phase-Out of New York City’s Peaker Power Plants

This report highlights ways to address New York City’s growing electricity demand and accelerate peaker plant retirement through robust demand management solutions that harness the flexibility of customer devices, such as smart thermostats, heat pumps, electric vehicle chargers, solar, and battery storage, to reduce stress on the electric grid. The report includes best practices for centering equity in demand management program development, with a focus on demand response and virtual power plants, as well as establishing a regulatory framework for implementation.

While demand management cannot necessarily address the entire projected energy generation deficit New York currently faces, it is a simple and rapidly implementable solution which can narrow the project gap significantly. Importantly, demand management solutions can provide a cost-effective and emissions-free alternative to extending the life of existing polluting fossil fuel assets like aging and inefficient peaker power plants. If implemented effectively, demand management programs can also reduce energy burdens, increase reliability, and generate workforce development opportunities for New York City’s most marginalized communities.