Demand Response and Energy Efficiency for the Smart Grid



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Ed Koch CTO, Akuacom ed@akuacom.com 415-256-2583 Tariq Samad Corporate Fellow, Honeywell Demand Response and Energy Efficiency for the Smart Grid Stanford University, 16 May 2011

Outline Introduction to Demand Response (DR) Demand Response Architectures and Issues Facility Load Control Issues Smart Grid Standards for DR Backup Material - Honeywell projects in energy efficiency and demand response 2

Energy and the Grid: A Balancing Act SUPPLY Utility DEMAND 3

Actual CA Demand Profile (5/15/2010) 4

Grid Balancing Issues (diagram courtesy of DRRC) Daily peak management Ramp Smoothing Load Shifting & Ancillary Services 5

What Is Automated Demand Response (Auto-DR)? Imbalances in the grid may cause grid reliability issues or energy price fluctuations, both of which h may result in the need to actively balance the supply/demand of the grid. Options for dealing with imbalances include: Purchasing power from another state, e.g. Canada, or Mexico (expensive) Start up old generation plants (AQMD issues) Build new power plants (Very Costly) Black outs, Brown outs (High customer impact) Voluntary customer power reductions (Demand Response) Auto-DR is a well defined, automated, voluntary reaction to a DR event called by Utilities and Independent System Operators requiring energy consumption/reduction during an anticipated period of imbalance in the grid. 6

Manual Demand Response 7

Reliable, Persistent DR - Auto-DR with OpenADR PG&E DR Automation Server Embedded Client in New Controls 8

Example of a Typical DR Event Honeywell-Akuacom LBNL 9

Secretary Chu Grid Week 2009 10

Outline Introduction to Demand Response (DR) Demand Response Architectures and Issues Facility Load Control Issues Smart Grid Standards for DR Backup Material - Honeywell projects in energy efficiency and demand response 11

Simple Interaction Model 12

DR Logic Concept 13

DR Logic Scenarios 14

DR Signal Hierarchy 15

DR Architecture - OpenADR Signaling- continuous, 2-way, secure messaging system for dynamic prices, emergency and reliability signals. Oneway applications are under development Client-server architecture - uses open interfaces to allow interoperability with publish and subscribe systems Current system - uses internet available at most large facilities or broadcasting points. Hardware retrofit or embedded software - many clients fully implemented with existing XML software 16 16

Outline Introduction to Demand Response (DR) Demand Response Architectures and Issues Facility Load Control Issues Smart Grid Standards for DR Backup Material - Honeywell projects in energy efficiency and demand response 17

Facility Energy Management and the Smart Grid 18

U.S. energy consumption (all sources) Industry 32% Buildings 40% Residential 22% Water Heat 12% Cooling 12% Lights 11% Refrigeration 8% Electronics 7% Wet Clean 5% Cooking 5% Computers 1% Other 4% Heating 31% Transportation 28% Commercial 18% US DOE Buildings Handbook, 2008 Heating 14% Cooling 13% Water Heat 7% Ventilation 6% Office Equipment 6% Refrigeration 4% Computers 3% Cooking 2% Other 13% Lights 26% Building automation controls 66% of energy use in homes and buildings today the smart grid will enable more About 70% of the nation s electricity consumption is in homes and buildings 19

Global Temperature Reset Migrating to California Energy Code DR Shed Strategies Honeywell.com HVAC Lighting Other Building use ACWD Office, lab X X X X X X X B of A Office, data center X X X X X Chabot Museum X X 2530 Arnold Office X X 50 Douglas Office X X Global temp. adjustment Duct sta atic pres. Increase SAT Inc crease MDF Detention facility X Echelon Hi-tech office X X X X X X X X Centerville Junior Highschool X X Irvington Highschool X X Gilead 300 Office X Gilead 342 Office, Lab X X Gilead 357 Office, Lab X X IKEA EPaloAlto Furniture retail X IKEA Emeryville Furniture retail X IKEA WSacto Furniture retail Oracle Rocklin Office X X Safeway Stockton Supermarket X Solectron Office, Manufacture X X Svenhard's Bakery X Sybase Hi-tech office X Target Antioch Retail X X Target Bakersfield Retail X X Target Hayward Retail X X X X Walmart Fresno Retail X X Fan VFD limit CHW te emp. Increase. reduction Fan qty. Pre-coo oling valve limit Cooling Boiler lo ockout Slow rec covery Extende ed shed period Commo on area light dim Office area light dim f light Turn off Dimmab ble ballast switching Bi-level tical process shed Non-crit 20

Commercial buildings smart smart grid complexities The energy used for overhead (HVAC / lighting / etc.) must be balanced with the energy used for production, or meaningful work in a facility requires detailed knowledge of overhead and production loads Building codes must be followed (indoor air quality, energy efficiency, etc.) specific operating conditions must be maintained Control schedules for commercial buildings must be designed d with knowledge of weather, indoor conditions, expected occupancy, etc. building should be comfortable just in time for first occupants but not any earlier Startup of loads (in occupied mode or after power failure) must be managed e.g., electrical spikes cannot be tolerated Complete replacement of existing control systems typically not feasible gateways used to interface with newer technologies Thermal / ice storage increasingly common for load shifting requires knowledge of current and future cost of energy, weather information, current and future demand, existing storage capacity, etc. Domain knowledge essential for load management 21

Building automation system example ell EBI Honeywe 22

Outline Introduction to Demand Response (DR) Demand Response Architectures and Issues Facility Load Control Issues Smart Grid Standards for DR Backup Material - Honeywell projects in energy efficiency and demand response 23

OpenADR and NIST Smart Grid Roadmap Conceptual Model 24

Research initiated by LBNL/ DRRC (California i Energy Commission i PIER) OpenADR History and Timeline Pilots and field trials - 2003: Developments, tests - 2004: Scaled-up tests, relay - 2005-06: 06 CPP/ Auto-CPP (PG&E) First official OpenADR v1.0 specification by LBNL/CEC* OpenADR Commercialization (PG&E, SCE, and SDG&E) 1. OpenADR standards 2. Pilots and field trials - Wholesale markets (CAISO) - Pacific-NW (Winter DR) 3. International demos. 2002 2003 2004 2005 2006 2007 2008 2009 2010 1. OpenADR donated to OASIS and UCAIug - UCA OpenADR Taskforce formed - OASIS EI TC formed 2. NIST Smart Grid, PAP 09 3. Honeywell Smart Grid - ARRA 80MW Auto-DR w/ SCE *OpenADR v1.0: http://openadr.lbl.gov/ 25 2

Smart Grid Interoperability Panel Pi Priority it Action Plans Related dto DR http://collaborate.nist.gov/twiki- sggrid/bin/view/smartgrid/webhome#priority_action_plans_paps Plans PAPs PAP 03 Common Price Communication Model http://collaborate.nist.gov/twiki-sggrid/bin/view/smartgrid/pap03priceproduct PAP 04 Common Scheduling Mechanism http://collaborate.nist.gov/twiki-sggrid/bin/view/smartgrid/pap04schedules PAP 09 Standard DR and DER Signals http://collaborate.nist.gov/twiki-sggrid/bin/view/smartgrid/pap09drder PAP 10 Standard Energy Usage Information http://collaborate.nist.gov/twiki-sggrid/bin/view/smartgrid/pap10energyusagetoems PAP 17 Facility Smart Grid Information http://collaborate.nist.gov/twiki- t t /t iki sggrid/bin/view/smartgrid/pap17facilitysmartgridinformationstandard 26

Outline Introduction to Demand Response (DR) Demand Response Architectures and Issues Facility Load Control Issues Smart Grid Standards for DR Backup Material - Honeywell projects in energy efficiency and demand response 27

Novar Remote Energy Management Service Honeywell Novar keeps energy consumption and costs low for multi-site businesses and reduces peak loads for utilities 6 GW under management in U.S. Novar multi-site customers include: Walmart, Office Depot, Home Depot, Lowes Internet and standard protocols used Typical results 20-40% improvement in energy efficiency and maintenance costs 10-20% reduction in peak use Analysis & Feedback 300 250 comparison between buildings and to baseline root cause analysis maintenance and operational recommendations 0 KW 200 150 100 Site: 89, comparison against model, unusual usage highlighted 8/29/2009 ReferenceModel High Usage 50 10 20 30 40 50 60 70 80 90 100 Interval 28 Secure cloud-based energy management with existing communication infrastructure

Automated DR for commercial/industrial customers CPP Tariff Creation System Planning Event Notification Incentive Payment Regulatory Reporting Tridium JACE Integration with Existing BAS Customer Dashboard Project Implementation Operating Center Reporting Honeywell (Akuacom) DR Automation System Event Control / acknowledgements Information Dashboards Reporting 700 SCE Customers (80 MW AutoDR) > 200KW Program Participation Agreement DR Specific Programming gchange to BAS Individual Event Participation 2009 Recovery Act Selection 2009 Recovery Act Selection Category 2: Customer Systems Similar il projects with Cities of Tallahassee and Recovery Act Funding Awarded: $11,384,363 Quincy in Florida Total Project Size: $22,76,8726 29

Auto DR Programs in CA Pacific Gas and Electric Critical Peak Pricing (CPP) Demand Bidding Program (DBP) Peak Choice (PC) Peak Day Pricing (PDP) [proposed] Capacity Bidding Program CBP [proposed] Southern California Edison Auto DR Critical Peak Pricing (CPP) Demand Bidding Program (DBP) Real Time Pricing (RTP) Capacity Bidding Program (CBP) [coming soon] Demand Response Contracts (DRC) [coming soon] Default CPP tariff [coming soon] San Diego Gas and Electric Capacity Bidding Program (CBP) Critical Peak Pricing Default (CPPD) CAISO Participating Loads (PL) (currently piloting) Proxy Demand Response (PDR) [proposed] Sacramento Municipal Utility District C&I Automated DR program 30

PG&E Auto-DR System Architecture Secure Web Services Operators ` Inform ation System Internet DRAS t PG& EDRAS 1, 3 or 5 indicating price levels Internet Feedback RTP Server Target Multi-site Enterprise Control System CLIR EMCS Protocol C C Electric Loads C WS Client EMCS Protocol C C Electric Loads C CLIR EMCS Protocol WS Client EMCS Protocol Multi-Site Enterprise Control System GTWY GTWY GTWY Simple Simple GTWY Client Client EMCS EMCS EMCS Protocol EMCS EMCS Protocol EMCS Protocol Protocol Protocol Protocol C C C C C C C C C Electric C C C Electric C C Electric C Electric C Electric Loads Loads Electric Loads Loads Loads Loads Site 1-25 Site 1-3 ACWD, Svenhard s, IKEA, etc. EMCS EMCS Protocol Protocol C C C C C C C Electric C Electric Loads Electric Loads Loads Contra Costa County 1 CLIR for 10 Sites -DBP 1 CLIR for 3 Sites- CPP Solectron, etc. EMCS EMCS Protocol Protocol C C C C C C C Electric C Electric Loads Electric Loads Loads NetApps 31

Automated demand response pilots in China, Southeast Asia, and India China State t Grid application focusing on managing energy use in commercial buildings Goals include near realtime demand response for relieving stress on grid 32

Energy storage to reduce peak demand C&I smart grid example: Ice Energy s storage solution (Ice Bear) enables peak load reduction in commercial buildings through the generation of ice during off-peak times and the use of the ice for cooling during peak load. A controller and ESI are part of the Ice Bear product, which determines the energy source (the EMS controls the cooling demand). Condensing unit peak reduction of 94 98 per cent is routinely realized in commercial installations. Meter r* Utility EMS Load-2... A/C Unit Load-n http://www.ice-energy.com/ Internet ESI Ice Storage Unit Facility 33

Industrial smart grid application (1) NYISO Internet C&I smart grid example: On NYISO request, a Lafarge cement processing plant in NY shuts down rock crushers up to 22 MW. ESI Plant production can continue with stockpiled crushed rock. EMS EMS calculates load curtailment and submissions to NYISO; payment can Load-1... Load-n occur automatically. Lafarge also participates in NYISO s Day-Ahead Rock crushers Demand Response Program scheduling maintenance during high- priced periods. $2M additional revenue (by early 2005). Proc. 27 th Industrial Energy Technology Conf., 2005. Meter* Facility 34

Industrial smart grid application (2) Midwest ISO C&I smart grid example: Alcoa Power Generation, Inc. participates in the MISO wholesale market by providing regulation of up to 25 MW as an ancillary service through h control of smelter loads at Alcoa s Warwick Plant (Ind.). APGI is reimbursed for load modulation as if the energy was generated. Total facility load is 550 MW. More than15 GW of regulation capability is available in U.S. industry. Additional capability exists for other ancillary services. Meter* Internet / ISDN / Tel. Facility ESI EMS Load-1... Load-n Aluminum smelter loads http://info.ornl.gov/sites/publications/files/pub13833.pdf 35

Smart Grid: Residential Perspective Existing Network Infrastructure Broadband Cellular, WiFi, etc. Utility Home Energy Manager PHEV Solar Geothermal Simple, easy-to-use, secure and efficient solutions using existing infrastructure 36

Residential, Commercial, Industrial loads Micro-Grids Transmission & Distribution System Public Utilities Bulk Power Generation (Coal, Gas, Nuclear, ) Micro-Grid Benefits Energy security Renewable generation sources Storage technologies & demand management to integrate intermittent renewables Increased reliability Storage (batteries Islanding ability to avoid blackout (uninterrupted power) Improved efficiency Waste heat recycled for heating/cooling of buildings Reduced T&D losses 37 Storage (batteries, chemical, thermal) Interface to Utility Grid Local Multi-fuel generation (Backup) Traditional Electric Grid: Centuries old design with 1-way electricity flow Smart Micro-Grid Interconnected Local generation & distribution Electricity, it heating, cooling (CHP) Distributed Renewable Generation & Storage

Integrated Microgrid Optimization Problem SUPPLY SIDE Wind Optimization of generation, storage and consumption DEMAND SIDE Campuses Photovoltaics Cogeneration (CHP) Equipment schedules, fuel switching Generation forecast System Optimization Load forecast Load management - Curtailable loads - Reschedulable loads - Critical loads Neighborhoods Other sources e.g. biomass Purchase Optimum or generate? use of storage capacities UTILITIES Bulk electricity network Demand response, dynamic pricing, buying green power Energy storage components Batteries, fuel cells, hydrogen, thermal storage, etc. Electric cars Can be used as a temporal storage 38

Common Principles The consumer should own and control detailed consumption data utility access to data needed for billing and grid reliability is appropriate Existing infrastructure can and should be used for smart grid signals broad-based deployment of new infrastructure is expensive and unnecessary Consumers should have incentives and tools to help them manage their demand moving beyond direct load control to demand response 39

Summary Climate change, energy security, grid reliability, economics issues di driving i smart grid iddevelopment Beyond yesterday's power system smart grids extend "beyond the meter" End use consumption management includes energy efficiency, direct load control, and, especially, automated demand response Successful applications already existing infrastructure, customer ownership and control Research opportunities microgrids, EV coordination, renewable integration, optimized demand response, and others 40