If peak demand can be lowered, there's no need to start up more power plants. Discount programs like this and others that discourage peak period usage (like free nights and weekends) smooth out the peak demand. So, you don't have to light up as much standby capacity, and it's easier on the grid.
My state is #3 in renewable generation capacity (and #1 in non-hydro renewable), but we also have enough "idle reserve" to pick up the slack if weather conditions require it. Our idle reserve runs on natural gas, and has remained on standby. It's really easy to start it up on short notice.
Since our grid is almost entirely isolated from the rest of the US, we have to manage supply and demand ourselves. We can't buy from other states or sell excess to them, at least not in significant amounts.
If peak demand can be lowered, there's no need to start up more power plants. Discount programs like this and others that discourage peak period usage (like free nights and weekends) smooth out the peak demand. So, you don't have to light up as much standby capacity, and it's easier on the grid.
My state is #3 in renewable generation capacity, but we also have enough "idle reserve" to pick up the slack if weather conditions require it. Our idle reserve runs on natural gas, and has remained on standby. It's really easy to start it up on short notice.
Since our grid is almost entirely isolated from the rest of the US, we have to manage supply and demand ourselves. We can't buy from other states or sell excess to them, at least not in significant amounts.
If peak demand can be lowered, there's no need to start up more power plants. Discount programs like this and others that discourage peak period usage (like free nights and weekends) smooth out the peak demand. So, you don't have to light up as much standby capacity, and it's easier on the grid.
Where I live, we have even more renewable generation capacity than California (and any other state, too), but we also have enough "idle reserve" to pick up the slack if weather conditions require it. Our idle reserve runs on natural gas, and has remained on standby. It's really easy to start it up on short notice.
Since our grid is almost entirely isolated from the rest of the US, we have to manage supply and demand ourselves. We can't buy from other states or sell excess to them, at least not in significant amounts.