A new study from Lawrence Berkeley National Laboratory suggests that California could make a serious dent in its peak power problem — not by building more power plants, but by getting everyday devices to use electricity when it is cheapest and cleanest.
What's happening?
According to pv magazine, researchers at Lawrence Berkeley National Laboratory said six categories of electricity-using equipment that can respond to dynamic power prices could trim up to 8.75 gigawatts from California's peak demand by 2030.
That figure represents technical potential, meaning broad participation would be needed. Customers would have to opt in to dynamic pricing and buy equipment that can automatically respond to changing rates. The study found that for some of the most common devices — especially electric vehicle chargers and smart thermostats — utility bill savings would generally outweigh equipment costs.
The researchers examined "mild," "medium," and "full" dynamic pricing, in which variable rates affect 20%, 50%, or 100% of a participating customer's bill. The full version created the strongest incentive to shift electricity use toward midday, when solar generation is abundant.
California is already moving in that direction. The state has directed major utilities and community choice aggregators to offer dynamic pricing options by 2027.
Why does it matter?
California's grid often faces a mismatch: Solar production surges during the day, while electricity demand spikes later, when people return home, turn on air conditioning, and plug in their cars.
Getting appliances and chargers to respond to price signals could help close that gap. When customers shift some power use to cheaper midday hours, they can lower their own bills while also easing pressure on the grid during the most expensive and stressful times.
That could reduce the need for costly infrastructure built mainly to serve short-lived peaks — expenses often passed on to ratepayers.
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The study also found climate benefits. More flexible demand would create a grid load profile that better aligns with renewable generation, reducing pollution. Researchers said the new load shapes "could enable substantial increases in renewables integration" while also reducing how much battery storage the system may need.
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What's being done?
California has set a goal of reaching 7 gigawatts of load flexibility, with 3 gigawatts coming from price-responsive appliances and 4 gigawatts from traditional demand response during the year's 100 highest-demand hours.
State regulators and appliance standards are helping lay the groundwork.
According to pv magazine, a California Energy Commission staff member said in 2024 that the agency was working first on flexible demand standards for electric storage water heaters and would then turn to EV chargers. The commission also issued a 2023 standard for swimming pool controls, and manufacturers have since produced 73 models that comply.
Under full dynamic pricing, payback periods for price-responsive equipment would remain below three years for nearly all end uses and customer classes.
There are limits, however. Commercial cooling had a slower payback under milder pricing scenarios, and the study noted that some battery owners may prioritize backup power over helping the grid on peak days.
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