Google

At a Glance

Industry

Internet, Software, Hardware and Technology Services

Project Types

Data Analysis, Industrial Energy Efficiency

Year

2024

Location

San Francisco, CA

Summary

Patricia worked within Google's Climate Operations team to conduct a landscape analysis of commercial and industrial load participation in demand response programs, categorizing existing participants based on key metrics (e.g. business model and load profile characteristics, etc.). By identifying current barriers, Patricia's work sought to advance demand-side strategies as potential levers for Google's sustainability goals and broader grid decarbonization.

Goals

Google aims to achieve net zero emissions across its operations and value chain by 2030. To support this mission, Google aims to operate its data centers and offices on 24/7 carbon-free energy. Realizing these ambitious goals requires innovative solutions to increase clean energy supply to meet electricity demand. One potential solution is load flexibility, adjusting electricity consumption to better match supply.

Solutions

Patricia performed primary and secondary market research, data analysis, and industry benchmarking to increase Google's understanding of existing demand response programs and the broader load flexibility landscape. Demand response can bring substantial value to the grid, but unlocking its potential across C&I industries requires broader market changes. Patricia's analysis identified the following policy recommendations: 1. Program Requirements: ISOs and utilities need a larger breadth of industries to participate in demand response programs to meet the Department of Energy's projected need for >200GW load flexibility capacity by 2030 (DoE). To achieve this scale, ISOs and utilities need to redesign their programs to reflect the diversity of loads available in the market. Aligning programs with industries' evolving load characteristics and constraints is a more responsive and data-driven approach versus force-fitting loads into legacy program requirements. 2. Incentives: Industries react to incentives differently given varying levels of electricity intensity (MwH/$ sales). To expand to a larger participant pool, ISOs and utilities need to broaden the types of incentives offered.

Potential Impact

Patricia's comprehensive landscape assessment increased Google's knowledge and understanding of load flexibility, including its market evolution and the state of play today. This project gives Google a data-driven foundation to explore demand response as a potential lever for Google's sustainability goals and broader grid decarbonization.

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