(103c) Valuing and Deploying Industrial Energy Flexibility at Scale

Significant variability in time of use electricity rates and high electricity demand charges are incentivizing industrial load flexibility and dispatchable generation. We propose a new set of metrics for valuing industrial load flexibility that enables direct comparison with other distributed energy storage technologies (e.g., batteries). Applying these metrics allows grid planners to assess the value of industrial flexibility to the grid relative to existing energy storage solutions and industrial operators to assess the financial benefits of energy flexibility for their facility operation. We apply these metrics to assess the benefits of load flexibility and dispatchable biomethane production with onsite electricity generation at water and wastewater treatment facilities. The framework reveals strengths and limitations of water system flexibility relative to other grid scale energy storage solutions, high value opportunities for flexible load operation of water assets, and the critical role of electricity tariff structures and energy service markets in determining water sector participation in load flexibility. Ultimately, this unified framework for valuating water asset flexibility enables both electricity and water asset managers to prioritize investments based on levelized cost comparisons across their respective portfolios.