FLEXvalue

PROBLEM:

Value is a Black Box

A critical problem facing demand flexibility programs and markets is a lack of an accurate price signal for the long-term value of changes in energy consumption, and the ability to track and optimize for cost-effectiveness.

Existing tools are designed for consultants and regulators, inaccessible or indecipherable to most industry actors, and cloud the value signal.

SOLUTION:

The FLEXvalue™ engine democratizes the value of projects to the grid and cost-effectiveness for regulators and decision makers.

Aggregators and implementers can be paid for the value of the portfolio delivered and get credit for the performance grounded in hourly value streams.

IMPLEMENTATION:

Open-Source

The FLEXvalue engine Python codebase and complementary execution language are universally accessible on GitHub.

FLEXvalue’s open governance model allows for timely updates to code and invites the community to maintain accuracy and transparency as cost-effectiveness policies evolve.

PROJECT

Open-source Valuation and Cost-Effectiveness Calculation of Demand Flexibility

METHODS

An Extensible and Transparent Implementation of the Valuation of Demand Flexibility

CODE

Open-source Python code available to all parties without restriction.

The FLEXvalue engine is an open-source package of tools to simplify and bring to life the valuation of demand-side resources. With the FLEXvalue application, users have the power to generate the dollar value and avoided emissions of demand-side resources using either measured load shapes or standard “deemed” values.

The ability of FLEXvalue to compute grid and carbon benefits from customizable load shapes removes a significant barrier to the more holistic and innovative demand-side solutions needed to address today’s climate challenges.

Along with quantifying cost-effectiveness and emissions impacts, FLEXvalue produces a series of graphics that showcase a portfolio's value and provide insights on pathways to optimize. With FLEXvalue, users also gain access to a clear price signal that all parties can utilize to connect observed program impacts to their grid and carbon value.

The FLEXvalue Python Codebase is universally accessible on GitHub, along with examples and documentation. A point by point tutorial will help you locate, load and run electric and gas cost effectiveness calculations using the CPUC avoided cost data and the cost effectiveness formulas for Total Resource Cost (TRC) and Program Administrator Cost (PAC) tests approved for the energy efficiency proceeding. This package currently utilizes the CPUC’s published avoided cost data and enables market actors across the state to assess demand flexibility value and inform decisions with clear data.

In addition to tabular outputs, the FLEXvalue engine includes code for visualization of key outputs. The engine can be used for single projects to screen their value; or for portfolios of projects or full programs. Outputs are also compliant with the full list of parameters necessary for savings claims with the CPUC if required.