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© 2009 IBM Corporation

Case Studies in Demand Response and Smart Grids

National Town Meeting on Demand Response and Smart Grids

Don Mak

IBM Energy & Utilities IndustryJuly 14, 2009

Smarter Grids for a Smarter Planet | July 14, 2009 2



What’s smart?• Smart appliances, meters, and

sensors adjust consumption dynamically based on real-time pricing for residential consumers

Smarter Outcomes• 10% lower electricity bills• 50% reduction short-term peak loads • $70B projected savings though better use of

existing infrastructure

Pacific Northwest National Laboratory changes the business model for energy delivery

Leading Examples




What’s smart?

EDISON* research consortium, a Denmark-based collaborative aimed at developing an intelligent infrastructure that will make possible the large scale adoption of electric vehicles powered by sustainable energy

Smarter Outcomes

• Upward of 10% of the country's vehicles to be all electric or hybrid electric during the coming years

• Minimize CO2-emissions linked to electrified transport

• Maximize the use of renewable energy

• Enable smart technologies to control electric vehicle charging and billing and to ensure the stability of the overall energy system

EDISON will develop an intelligent infrastructure that will enable large scale adoption of electric vehicles powered by sustainable energy

*EDISON = Electric Vehicles in a Distributed and Integrated Market using Sustainable Energy and Open Networks




Southern California Edison Data Center “proof point” and Security and Interoperability foundation

What’s Smart?

• Data Center Energy Efficiency- Applied monitoring technology in commercial data

center in Southern California

• Secure Energy Internet- Security and interoperability are key concerns to DR

and SG implementations

Smarter Outcomes

• 10% data center energy savings- Annualized savings exceed 300kWh- Greater savings available with technology refresh

• Wide-scale demonstration- Intra- and inter-utility scope- Partner ecosystem “solution”

Average DC Definition

Size 20k ft2

Power density 40 W/ft2

Power 1.4 MW




What’s smart?

Innovative trial of time-of-use and critical peak electricity tariffs enabled by smart meters

Smarter Outcomes

• Up to a 25% shifting away from summertime critical peak times

• 6% lower energy consumption overall

• 75% of participants saved money

• 83% of participants wanted to stay on the program

Ontario Energy Board demonstrates the value of time-sensitive rates




Oncor’s Smart Texas Advanced Metering System is Live

What’s Smart?• Replacing old meters and systems with

advanced metering systems and enabling in-home demand response

• For the cost savings by using a CFL bulb compared to a 100-watt bulb…

Smarter Outcomes• June 30, 2009: 211,000+ meters providing

15-minute interval data to the market• Deployment of remaining 3.2 million meters

continuing to 2012 • 5-10% consumption and customer cost savings• Better customer information about energy

usage• Utility - improved reliability, stability, security

Source: Oncor




• Customers will pay only for the energy they actually use

• Customers will be able to switch to a pre-pay service, similar to mobile phone pre-payment

• Commercial losses will be reduced through monitoring of electricity and water grids

• Remote management of electricity supply

• Sophisticated analysis of consumption patterns, enabling a real-time view of energy use to identify opportunities for reduction

• Customers will have an Internet portal to track energy consumption

Malta will become the first country to implement an end-to-end electricity and water smart utility system

What’s smart?

Smarter Outcomes

Smart electricity and water meters, advanced IT applications enabling remote monitoring, management, meter readings and meter suspensions, customer energy management portal




What’s Smart?• Retrofit remote monitoring and control devices• Quickly locates and isolates faults

Smarter Outcomes• Potential to reduce outage minutes by 25-50%• Fault search time reduced by one-third• Potential capital savings up to 90 %

t

DONG Energy Optimizes Operations to Respond to Outages Faster




So, What is the Point?

- There are many successful pilots and implementations of Demand Response and Smart Grid activities

- The time to act is now – for customers and the planet

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