Leveraging Controls for a Smarter Grid. Turning Assets Into Revenue in HVAC

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1 Leveraging Controls for a Smarter Grid Turning Assets Into Revenue in HVAC February,

2 Pg 2 Demand Response and the Smart Grid What is Demand Response? Mechanisms used to encourage consumers to reduce electricity during times of peak demand, high wholesale prices, or grid emergencies Helps grid operator maintain reliability and control prices Customers earn money for their efforts Source: LBNL Demand response is clearly the killer application for the smart grid - FERC Chairman Jon Wellinghoff Automated Demand Response = Enabling technology to get more from DR Receive signal from grid Curtail loads Get paid 2 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

3 Pg 3 Mapping Building Assets into the Smart Grid Automation Enables New DR opportunities Far more than just peak shaving HVAC resources will be used in more advanced and creative ways Decreased Response Time = Increased Automation Capacity Economic Synchronized Reserves Regulation 3 year forward contracts Hourly markets (day ahead or day of) 10 minute response 4 second response Standby DR programs Called a few times per year Mitigates need to build more generation Voluntarily participation when hourly market prices get high Flexible participation Helps to control supply costs and shave peaks Quick response for short duration (<30 min) Standby and energy payments Controls short term spikes and keeps frequency balanced Loads directly responding to signals from grid Load must respond in a matter of seconds Continuously keeps frequency balanced 3 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

4 Pg 4 Opportunities for Economic Demand Response Earn or save money in markets that have dynamic pricing 4 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

5 Pg 5 Leveraging Automation with Pre-Cooling Pre-Cooling Building Overnight to Reduce During Peak Hours of Day Increased HVAC Here To Earn DR $ on Peak Hours 5 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

6 Pg 6 Synchronized Reserve (SR) Programs 10-minute response but duration limited to only 40 minutes (average ~ 11 min) Only dispatched a few times a month Ideal for large chillers with automated control Customers earn $20,000 - $40,000 per MW in mid-atlantic markets 6 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

7 Pg 7 Frequency Regulation: Real Time Grid Balancing Real-time signals from the grid Both up and down Energy neutral Dedicated SCADA network to interface with grid Control signal every 2 s Meter telemetry every 4 s 5 min to get to load target Incentives upward of $100,000 per MW-yr Ideal for thermal storage, electric boilers, generators 7 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

8 Pg 8 Frequency Regulation Implementation (one approach) Customer Interface Customer Site Real Time Response Gateway Load Instruction Signal Meter Data Control System Availability Schedule Settlement Info Load Instruction Signal Meter Data VPN Firewall Loads and Metering Meter Data VPN Firewall PJM Network Operations and Scheduling Load Instruction Signal Meter Data SCADA SERVER 8 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

9 Pg 9 Example of Smart Building for a Smarter Grid Ensures fans don t overcompensate for new CHW set points Automatically dims lighting Adjusts space temp, and chilled water temp set points 4 Provides real-time visibility to building managers per kwh High summer temps drive up cooling loads 2 Marginal cost of power increases, T&D systems become congested 3 Hourly Prices am pm Curtailment signal or real time price provided by ISO/utility 9 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

10 Pg 10 Summary Controls can be leveraged to integrate loads into the smart grid New opportunities for even tighter integration Various programs in different geographies allow customers to monetize Large chillers are ideal loads to participate! The grid is actually pretty smart today... but will continue to get smarter as load integration increases 10 Leveraging Controls for a Smarter Grid- IDEA San Diego, 2013

11 Discussion / Questions? 17 February 2012

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