States Hope to Rewire Consumers’ Energy Use Habits

States Hope to Rewire Consumers' Energy Use Habits

Behavioral changes can make the grid more stable and delay the need to build new power plants.

Dalton Oberfoell, an energy policy expert with NCSL, testifies before New Jersey lawmakers on advanced nuclear energy trends and legislation. (NCSL photo)

Encouraging consumers to change the way they use energy in their homes can improve grid stability without the need to spend money on new infrastructure, two NCSL energy policy experts say.

During testimony before a joint legislative meeting of the New Jersey House and Senate energy committees, Alex McWard and Dalton Oberfoell also discussed the latest advances in nuclear technology.

McWard told legislators that demand side management, or DSM, can modify consumer demand for energy.

"Demand side management is becoming a popular alternative to improve grid stability without the need for new generation facilities," he says.

In particular, he cites the growing popularity of demand response-a method of balancing energy demand by encouraging customers to shift their electricity usage, typically though incentives.

"A lot of utilities have offered (demand response) on their own for a while, but now some states are considering requiring utilities to offer it," he says. Earlier this year, for example, Connecticut passed a bill (SB 4) creating a pilot program to seek proposals from utilities for potential demand response measures. If the proposals are deemed feasible, utilities may be directed to enter into demand response contracts.

McWard says energy efficiency upgrades and appliances offer another approach to demand side management. In recent years, states have begun to introduce legislation to provide incentives for appliances that meet certain energy efficiency standards. States also have updated their building codes to align with international standards that aim to improve the efficiency of new buildings.

Advanced Nuclear

States also are considering advanced nuclear reactors-newer generation reactors such as small modular reactors, known as SMRs, or microreactors-that use non-light water reactor technology to produce electricity. These reactors have several benefits over traditional reactor technology, including enhanced safety, factory construction, scalable energy generation and faster deployment.

"Given the potential to produce SMRs or microreactors through factory construction, advanced nuclear reactors are poised to produce baseload energy and bring expanded versatility to meet a diverse set of market needs," Oberfoell says.

States have enacted several types of legislation in recent years to address the advanced nuclear ecosystem. Some have either repealed or removed nuclear moratoriums, sometimes specifically for SMRs, as a starting point to encourage development. Others have directed caucuses, committees, boards, state agencies or universities to study advanced reactors, nuclear workforce development and the feasibility of building advanced reactors in their states.

Additionally, state legislatures have included nuclear energy as "clean" or "green" energy, opening projects to further tax credits and incentives; produced workforce development plans to identify labor shortages for all aspects of the nuclear ecosystem; and passed bills making it easier to build and fund advanced nuclear reactors and attract related industries.

"Many states are pushing for advanced nuclear because it is viewed by many as the only way to meet increasing energy demand while also reducing greenhouse gas emissions," Oberfoell says.

Bryan Law is an associate director in NCSL's Energy, Environment and Transportation Program.

NCSL is the premier resource for state lawmakers seeking critical information to guide state policymaking. NCSL energy staff can provide testimony, research and other support to state lawmakers and legislative staff. Read more about the work of NCSL's energy policy team.