AESC 2021: Utility System Benefits From Demand Response Programs

National Grid
Project Complete September 2021

The Avoided Energy Supply Cost (AESC) studies provide avoided energy, capacity, capacity DRIPE, energy DRIPE, transmission, distribution, and reliability costs that are used by National Grid (along with other non-energy benefit inputs) to assess the cost-effectiveness of its energy efficiency programs. National Grid contracted with Synapse to confirm how to apply the AESC values to the various types of customers enrolled in its demand response programs. The purpose of Synapse's research was to document the models by which National Grid's current demand response programs participate in the FCM market, identify which AESC avoided costs accrue to the demand response programs, and determine the extent to which they accrue (e.g., full accrual or partial accrual).