Introduction
The electric grid is built to serve the peak demand period, i.e. the few hours in a year when the most electricity flows through the grid. Since higher peaks drive the need for additional grid capacity, they can trigger costly infrastructure upgrades that are paid for by consumers in their electricity bills.
By reducing peak demand on the electric grid, load management measures like energy efficiency, demand response, and virtual power plants can reduce the amount of grid infrastructure needed to provide clean and reliable electricity. Massachusetts already has nation-leading load management programs, including Mass Save and Connected Solutions. Through this study, DOER seeks to understand the potential for load management to build on these existing programs to achieve further savings for ratepayers.
The study will aim to answer three main questions:
Technical potential: What is the total potential for peak load reduction from different technologies (e.g. smart thermostats, energy efficiency, electric vehicles, storage, etc.)? How do these technologies “stack” in virtual power plants to address different grid needs?
Cost-benefit analysis: How much does this flexibility cost, and what benefits does it provide to ratepayers? What are the high-value opportunities to save money and empower customers to manage their energy usage?
Feasible potential: What incentives and barriers affect customers’ ability to participate in load management programs? Could changes in how the electric rid is structured or operated help reduce barriers to load management? How can DOER and other stakeholders help address these barriers?
To support this study, DOER procured the services of Energy and Environmental Economics (E3) and the Applied Economics Clinic (AEC).
The study team will release a technical report addressing these questions in the fall of 2025. Alongside this report, DOER plans to release a set of policy recommendations to maximize the potential for load management to reduce costs and support the Commonwealth’s climate commitments.
Opportunities for Input
DOER will host two public workshops to share preliminary results and invite feedback from interested parties, facilitated by E3 and AEC.
July 30, 2025 from 11:30 AM – 1:00 PM: The study team will share preliminary results on the technical potential for peak load reduction, including technical assumptions, modeling methodology, and results for 2030, 2040, and 2050.
September 10, 2025 from 11:30 AM – 1:00 PM: The study team will share results on cost-benefit analysis and feasible potential.
Each meeting will be hybrid with Zoom and in-person attendance in downtown Boston. More details will be provided closer to each workshop.
| Date published: | July 7, 2025 |
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