EXCERPT FROM INTRO, COMPLETE PAPER ATTACHED.
The world has a huge appetite for electric energy, consuming thousands of
billions of kilowatt-hours (kWh) annually, a figure that continues to climb
as more countries become industrialized. The world’s electric consumption
has increased by about 3.1 percent annually between 1980 and 20061), and is
expected to grow to 33,300 billion kWh by 2030). The world’s electricity
consumption for 2008 was 16,790 billion kWh so by 2030 the world demand for
electricity is expected to have almost doubled. Currently a significant
amount (about 10 percent) of electric energy produced by power plants is
lost during transmission and distribution to consumers. About 40 percent of
this total loss occurs on the distribution network. In 2006 alone, the total
energy losses and distribution losses were about 1,638 billion and 655
billion kWh, respectively. *A modest 10 percent reduction in distribution
losses would, therefore, save about 65 billion kWh of electricity. That’s
more electricity than Switzerland’s 7.5 million people consumed in 2008 and
equates to 39 million metric tons of CO2 emissions from coal-fired power
generation .*
As the demand for electricity grows, new power plants will have to be built
to meet the highest peak demand with additional capacity to cover unforeseen
events. The peak demand in a system usually lasts less than 5 percent of the
time (i.e, just a few hundred hours a year). This means that some power
plants are only needed during the peak load hours and their potential is
utilized relatively infrequently. By active demand management on the
distribution system, through demand response and VVO, the peak demand on the
whole electric grid can be reduced. This eliminates the need for expensive
capital expenditure on the distribution, transmission, and the generation
systems. Even very modest reductions in peak demand would yield huge
economic savings. For the United States in 2008, for example, the
non-coincidental peak demand (i.e, the separate peak demands made on the
electrical system recorded at different times of the day) was about 790 GW.
*With every 1 percent reduction in the peak demand there would be a reduced
need to build a 7,900 MW power plant.*