flexible energy: the value of demand response

© CGI Group Inc. CONFIDENTIAL

Flexible energy –

the value of demand response

Joris Knigge, senior Business Consultant

Jaarcongres Delta Cities, Delft, 12 November

Content

• Developments & Challenges

• Paradigm shift in the energy value chain

• Customer participation & Demand response

• Jouw Energie Moment

• Results

• Lessons learned & discussion

2

Developments

3

2020

Reliability

Competitiveness Sustainability

1990

2010

2000

Customer

Governance

Shareholder

• Electrification of energy demand,

energy savings

• Increase of intermittent distributed

renewable energy recourses

• Changing customer demands

Challenges

4

• Incorporation distributed renewable energy

into existing infrastructure, maintaining

affordability and reliability

• Facilitate new entrants and customer

demands

• Manage uncertainties and avoid investment

stranded assets

Total investment needs in the

electricity and gas sector

2010-20: over 1 trillion EUR

Power generation ~

500 bn

Distribution

~ 400 bn

Transmission

~ 200 bn

RES

~ 310 – 370 bn

Source: EC communication on Energy Infrastructure priorities for

2020 and beyond, 17.11.2011 based on PRIMES calculations

Transmission and

distribution ~ 600 bn

Paradigm Shift in the energy value chain

5

Generation Transport Distribution

Supply Consumption

Customer

participation

EV Supply & Charging

Generation

Transport

Wind

Energy generation PV Energy generation

Energy Storage

Distribution

Energy system is based on principle production

follows demand

Flexibiliteit is nodig!

Technische oplossingen (opslag)

Klantzijde particpatie

6

The quest for flexibility

• Technical solutions to increase flexibility of the system

• Involve demand-side of the system to increase flexibility of the system

7

Involvement customer in energy chain can serve

several business & societal goals

• Increase market power of customer

• Economic development in energy sector: new entrants, increase

innovation, market liquidity

• Incorporation of intermittent renewable energy recourses requires

flexibility – customer can provide flexibility in energy use

8

Customer participation & demand response

• Customer involvement in energy is very low (energy = commodity)

• Changing consumption pattern only occurs when changing

determinants (values, attitudes, norms, morals, perceived control)

• Develop service which focusses on customers needs !

9

From delivering kWh towards supplying energy

service

• Service development providing customers:

• Increased commitment

• Understandable insight in own consumption and production

• Real time feed back on behavioural effects

• Provide customer control and choice

10

Smart Meter Real time production and consumption

data is taken from the smart meter 11

Smart appliances In home display and management system

switches appliances on preferred times and

moments: according to tariffs or solar panel

production

Electric Vehicle Electric vehicles can be

charged by own solar

production

IT platform on district level CeMS

An IT platform supports monitoring

and data communication from and to

individual households, sensors

substation capacity and interfaces

with weather forecasts, wholesale

markets and back-offices energy

retailers Solar panels Solar panels produce

electricity for households

and feed into the network

12

13

Results

14

• Peak demand is reduced by ~40%, compared with average EU household profile

• 91% of particpating households want more “control” on their energy consumption

• 95% of participating households is convinced service “jouw energie moment” results

in value for them

• ~50% of participating households say they use their smart appliance more flexible –

according to preferences

Next Steps??

15

CGI provided solution (CeMS) together with

knowledge & expertise • CGI designed, developed, realised and operates the

IT data communication platform Central Energy Management System

• CGI delivered knowledge & expertise on workings of the market processes within the electricity sector

• CGI was responsible for system integration between various partners and suppliers to the consortium

• In home energy management systems

• Smart meter data systems

• Weather forecast services (Meteo Consult)

• Day Ahead electricity market (APX-ENDEX)

• Sensor- and monitoring on sub station of local distribution grid

• Billing & invoicing systems at back-offices of two competing energy retailers

16

Lessons Learned

17

• Development of products requires system integration

– Important: protocols, open standards • Involve customer at first phases of service product

development

Discussion

18