Evaluating the DSM Potential for Industrial Electrotechnologies and Management Practices

Abstract

In an effort to help balance load requirements and generating capacity, Houston Lighting & Power Company (HL&P) contracted with SRI International (SRI) to identify existing and emerging electrotechnologies and management practices (technologies) for possible inclusion in an industrial demand side management (DSM) program. This paper outlines the procedures used to evaluate technologies that may impact oil refining, pulp & paper production, and 26 major chemical processes of industrial customers within HL&P's service area. Each technology was reviewed with regard to its electricity requirements and applicability to various industries. In addition, each technology's basic principles, existing industrial applications, possible new applications, product or process limitations, and representative economics were investigated. Where applicable, concerns other than economic attractiveness such as environmental issues, worker safety, and product quality were identified. Additional information was also obtained from preliminary efforts to project the commercial penetration of each of these technologies. Factors affecting commercial penetration include the existing level of market penetration, fuel prices, electricity prices, capital investment requirements, perceived risk, and internal hurdles rates for investment. In order to fully determine which of these technologies should be included in an industrial DSM program, various HL&P industrial customers were interviewed with regard to their knowledge and/or acceptance levels of selected electrotechnologies and management practices. This enabled HL&P to better understand the specific needs of industrial customers within their service area. This survey data, along with the information provided by SRI and other sources, formed the basis for initial selection of technologies to include in an industrial DSM program. The value of encouraging HL&P's industrial customers to use any of these technologies will be compared to DSM programs for other customer classes, as well as more traditional generating resource options, before the final selection of electrotechnologies and management practices is made.