GE’s Grid IQ™ Demand Optimization solution uses GE’s Demand Response Management System (DR1000) software to connect other components of the solution, such as smart meters, home and building energy solutions, and underlying communications infrastructure, in order to enable communication between utilities and consumers. This allows utilities to reduce capacity reserve margin and consumers to reduce electricity use through greater transparency and control of their daily electricity profile.

Environmental Benefits

GE’s Grid IQ™ Demand Optimization solution helps utilities enhance demand side management and lower peak loads, which may reduce the need to utilize or build generation capacity. Studies show that demand optimization can reduce peak load by 5% to 15%. Assuming the average U.S. grid emission rate and an average peak load reduction of 5%, GE modeling projects that GE’s Grid IQ™ Demand Optimization solution could help a utility with one million consumers and 25% consumer participation in dynamic pricing programs avoid the emission of over 18,500 metric tons of CO2 per year. This is equivalent to the annual CO2 emissions of approximately 3,600 cars on U.S. roads.

Operating Benefits

GE’s Grid IQ™ Demand Optimization solution helps utilities avoid capacity costs by enabling enhanced demand side management and lower peak loads. Studies show that demand optimization can reduce peak load by 5% to 15%. Assuming a $70 per kW-yr peak generation capacity value and an average peak load reduction of 5%, GE modeling projects that GE’s Grid IQ™ Demand Optimization solution could save a utility with one million consumers and 25% consumer participation in dynamic pricing programs approximately $38 million per year.