A Real Market for Negawatts!
Posted by Max Dunn Fri, 27 Mar 2009 13:39:00 GMT
Negawatts is term coined by Amory Lovins to describe “negative watts” or conservation. It makes sense – instead of constantly building power plants to add more megawatts to the grid, why not let people bid on saving power through negawatts? That’s what New England’s independent system operator started doing last year.
In its Forward Capacity Market, the ISO projects how much power the region will need three years ahead and then runs a descending-clock auction for the right to provide it. The ISO doesn’t care whether it gets its power from increased production of megawatts or from conservation through negawatts. Result: money saved in power plants and wires, more stable electricity bills, and a homegrown incubator for getting bright green ideas off the drawing board.