The chart below shows demand as a percentage of available capacity in one region for an entire year, with most days staying well below 75% of capacity. An estimated 10% of grid infrastructure is built to supply energy during times of dangerous peak demand, which only make up 1% of the year. Grid operators spend a large amount of money on operating and maintaining these highly polluting plants so they can be ready to quickly start up at times of peak demand, which are rare but dangerous moments on the grid. As such, peaker plants generate power for limited hours each year, spending most of their time on call in case they are needed. Traditionally, peaker plants have been used to ensure grid reliability during high demand periods. Illustrative example from PJM Why have grid operators traditionally relied on peaker plants? Cost of various energy resources for the grid Since there is only so much generation at any time and supply can fluctuate, additional generation is needed to meet any potential shortfalls – and when demand is high enough, grid operators have traditionally relied on peaker plants. As you can see in the chart below, the higher cost assets that are called when demand is very high are typically more fossil fuel-intensive – gas turbines, for instance, are common peaker plants because they can quickly start and ramp up at times of high demand. To understand peaker plants, it’s important to realize not all energy generation is created equal – power sources are typically called on by grid operators in order of marginal cost. Peaker plants supply power that is not only high in cost but also typically high in greenhouse gas emissions. Demand response is one part of that evolution of supply and demand – by paying energy users to reduce their demand for grid energy at times of grid stress, demand response helps to keep power flowing and reduces the need for the use of peaking power plants.īut what are peaking power plants? What is a peaking power plant?Ī peaking power plant (or “peaker plant” for short) is a power plant that grid operators call on at times of particularly high electricity demand on the grid. However, both supply and demand have changed drastically over the years. The electric grid was originally built to accommodate and run on fossil fuels. While the amount of electricity they produce is always changing, their operation is very flexible and their output can be adjusted quickly in response to the electricity system's needs.To realize the benefits that demand response offers to the electric grid, it’s important to understand the concept of peaking power plants. Wind and solar farms generate more or less electricity based on how sunny or windy it is. These generators can also be called upon to meet peak demand when electricity use is at its highest. Generators such as natural gas plants and hydro dams – which can adjust their output up or down quickly – play a crucial role in matching supply and demand throughout the day. Because of these operating characteristics, they are typically used first to meet Ontario's energy needs.Īs demand rises and falls throughout the day, more flexible intermediate forms of electricity generation are used. The output of these generators is consistent and reliable, but rarely changes. Nuclear and run-of-the-river hydro plants generate a constant, steady supply of electricity - 24 hours a day, 7 days a week. Different Types of Electricity Generation
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