customer side of the grid: architecture options
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Customer Side of the Grid: Architecture Options
Harvey Michaels, Scientist/Lecturer
DUSP Environmental Policy and MITEI
617-253-2084 hgm@mit.edu 9-326
Instructor: Enabling an Energy Efficient Society
Energy Efficiency at MIT
Expanding Coursework – Energy Minor Integrated Technology, Economic, Management,
Behavior, Policy Research:– 2050 Resource Assessment
– Customer Side of Smart Grid: Architectural Options: • Smart Grid or Smart Citizen?• Public or Private Networks?• How to maximize behavior impact • How to maximize market innovation
– Internet Innovation:• I2EE-based buildings• Web 2.0 GIS/Community Systems
– Federal/State/Utility Program Design:• Utility/Community/Campus Partnerships• Zero Net Energy buildings
Information and pricing as an efficiency/DR option: Providing consumers with energy diagnostics, feedback, control
The Demand Response Issue: The Load Duration Curve Continues to Erode
9,000
11,000
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15,000
17,000
19,000
21,000
23,000
25,000
27,000
29,000
1 501 1001 1501 2001 2501 3001 3501 4001 4501 5001 5501 6001 6501 7001 7501 8001 8501
Hours per Year
MW
With the continued penetration of central air conditioning systems, the top 60 hours of the year now account for 10-15 percent of the system peak
Smart Grid: One Network or Three?
SCADA: “System Control and Distribution Automation” of G,T& D
– to improve system efficiency and performance and provide resilience to failure.
AMI: “Advanced Meter Infrastructure”
– automates the meter read process,
– increases the frequency of reads to at least hourly,
– and possibly communicates two-way between utility and meter for demand response (DR) services.
LAN: “Local Area Networks” within buildings
– communications (powerline or wireless) between devices
– managing software process (in-home dedicated server, utility managed off-site, or Internet).
– consumer display device (kitchen, thermostat) or multi-purpose display (TV, computer, phone).
The Customer Side of Smart Grid : 2 strategies/architectures
1: Customer-Controlled Architectures
Price-based demand response, using time-differentiated rates, which requires AMI.
– Vision: Customers view data, make choices, in time automatic response by customers thermostat and other devices.
2: Utility-Controlled Architectures
Push-button Control-based demand response – The Utility monitors and controls end use equipment.
– Vision: Generation, transmission, distribution, and end use equipment as part of a single system.
– Interval meter reads not essential.
Utility Private Network Architecture – utility provides meter-to-devices communication and control
MDM/Head-end
Utility-side
CustomerUtility-network devices in home
Third parties or utility “Energy Desks” control registered loads
0% 50% 100% 150%
0% 50% 100% 150%
Customer 1
Customer 2
Customer 3
Customer 4
0% 50% 100% 150%
0% RISK 100% RISK 0% RISK
Customer 8
Customer 9
Customer 10
Customer 11
Customer 12
Customer 13
Customer 14
Customer 5
Customer 6
Customer 7
Customer 15
Customer X
Utility
Politics of the “Smart Grid” – Does Society want Utility Control?
End use equipment is visible and controllable by the utility or third party–
“Utility control” is more dispatchable and therefore can replace spinning reserve
….but some find it kind of scary.
Resistance is Futile
Prepare to be Assimilated
Customer-responsive Architecture = Providing consumers with energy diagnostics, feedback, control
refers to systems for optimizing consumers’ end-use needs (especially air conditioning, heat, hot water)
based on weather, schedules, and time differentiated costs.
Time-differentiated rates are more fair, and some would argue inevitable.
Customer Responsive Systems work 24/7, providing efficiency as well as peak demand response.
AMI needed for Time-Dependent (dynamic) Pricing
Illustration of Residential CPP Rate
0.0
0.2
0.4
0.6
0.8
1.0
1.2
0 2 4 6 8 10 12 14 16 18 20 22 24
Hour of Day
Rat
e (
$/k
Wh
)
Existing All-In
CPP on Critical Days
CPP on Non-Critical Days
Higher prices during Critical Peak Events~ 50-150 hours/year
Discounted price during off peak hours~ 7,700 hours/year
Higher TOU prices during peak hours ~ 1,000 hours/year
Customers respond to CPP price signals…
Peak-Period Reduction on Critical Peak Days
13.1
1111.9 12
0
2
4
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CA SPP AmerenUE Anaheim PeakTime Rebate
PSE&G
Pe
rce
nt
Re
du
cti
on
In
Pe
ak
-Pe
rio
d E
ne
rgy
Us
e
Price Ratio: 4.1:1 4:1 4.6:1 6:1
Source: Roger Levy, Statewide Pricing Pilot Summer 2003 Impact Analysis, Charles Rivers Associates, Table 1-3, 1-4, August 9, 2004.
Time of Use TOU
Critical Peak Impacts By Rate Treatment
0%
10%
20%
30%
40%
50%
Pe
ak
Lo
ad
Re
du
cti
on
Critical Peak Fixed
CPP-F
TOU
4.1%
Critical Peak
Variable With
Automated Controls
CPP-V
34.5%
12.5%
Critical Peak
Variable With
Automated Controls
CPP-V
47.4%
Average Critical Peak Day – Year 1Hottest Critical
Peak Day *
Smart Grid AMI/pricing helps, but consumers respond more with information and/or controls
Customer-Controlled, Public Network Architecture:
Utility’s Web Workspace
MDM CRM
Device Workspace
Utility-side
Consumer-side
Vision - Applications for the Smart Consumer
Utility, thermostat, appliance, Google, etc. make app.
View on home PC, work PC, TV, cell phone (at least until next year).
Application ideas:
Make my AC, water heater, pool pump, refrigerator use pattern smarter.
Find out what anything costs to run.
Choose the best rate for me.
Choose a theme – understand the consequences- do it (ie. More Green)
Sell a DR option.
TIME IS SHORT
NEED IS HIGH
OPPORTUNITY IS GREAT
Opportunity
Time for new leadership with capability, courage, and imagination to shift paradigms to develop greater energy efficiency!
…through strategic thinking about technologies, policies, planning, building methods, systems, software, business models.
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