Dynamic Energy Management
An EPRI Concept to Advance Energy Efficiency and Demand Response
ASERTTI Winter MeetingFebruary 13, 2007
Ellen PetrillDirector, Public/Private [email protected]
2© 2007 Electric Power Research Institute, Inc. All rights reserved.
Between a Rock..
Today’s consumers expect utilities to:• Reduce consumer energy costs• Enable automated, cost-effective use of electricity• Make environmentally sound decisions
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And a Hard Place
…while government regulators and policymakers are pressuring utilities to:
• Improve infrastructure reliability• Minimize environmental impacts• Save energy and reduce demand
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Per Capita Electricity Consumption is Flat in CA
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Existing Energy Efficiency and Demand Response Solutions Are Good But More Can Be Done
Utilities can meet the demands of consumers and policymakers while also improving their own operations and performance by:
• Empowering consumers with real-time electricity price and usage information• Increasing reliability with accurate, real-time supply and demand information • Confidently meeting peak demand with real-time knowledge of consumer
loads
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Dynamic Energy Management
Assure the reliable delivery and efficient use of electricity• Two-way communication between the electricity system and
consumer loads • Intelligence that automates the control and management of electricity
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The Dynamic Energy Infrastructure
EfficientBuildingSystemsUtility
Communications
DynamicSystemsControl
DataManagement
DistributionOperations
DistributedGeneration& Storage
Plug-In Hybrids
SmartEnd-UseDevices
ControlInterface
AdvancedMetering
Consumer Portal& Building EMS
Internet Renewables
PV
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Dynamic Energy Infrastructure: Basics
EfficientBuildingSystems
UtilityCommunications
DynamicSystemsControl
SmartEnd-UseDevices
ControlInterface
AdvancedMetering
Consumer Portal& Building EMS
Internet
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Dynamic Energy Infrastructure:Utility Operations
EfficientBuildingSystems
UtilityCommunications
DynamicSystemsControl
DataManagement
DistributionOperations
SmartEnd-UseDevices
ControlInterface
AdvancedMetering
Consumer Portal& Building EMS
Internet
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Dynamic Energy Infrastructure:Consumer Opportunities
EfficientBuildingSystems
UtilityCommunications
DynamicSystemsControl
DataManagement
DistributionOperations
Plug-In Hybrids
SmartEnd-UseDevices
ControlInterface
AdvancedMetering
Consumer Portal& Building EMS
Internet
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My Plug-in Hybrid Electric Vehicle
• Convenient Charging… Anytime and Anywhere
– Vehicle meter “handshakes” with network-connected “socket” to identify vehicle and billing information
• Distributed Energy Storage / Generation
– Utilize stored battery energy for short-term back-up power
– Utilize IC engine for longer-term backup power
Consumers will expect these conveniences…will the electricity infrastructure be ready?
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Dynamic Energy Infrastructure:Consumer Opportunities
EfficientBuildingSystems
UtilityCommunications
DynamicSystemsControl
DataManagement
DistributionOperations
DistributedGeneration& Storage
Plug-In Hybrids
SmartEnd-UseDevices
ControlInterface
AdvancedMetering
Consumer Portal& Building EMS
Internet Renewables
PV
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Dynamic Energy Infrastructure: “Prices to Devices”sm
Day-ahead Hourly PricesPeak
=Smart End-Use Devices
Off-Peak
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The Dynamic Energy Infrastructure at Work
EfficientBuildingSystems
UtilityCommunications
DynamicSystemsControl
DataManagement
DistributionOperations
DistributedGeneration& Storage
Plug-In Hybrids
SmartEnd-UseDevices
ControlInterface
AdvancedMetering
Consumer Portal& Building EMS
Internet Renewables
PV
Thermostat receivesday-ahead hourlypricesConsumer sets upperand lower limitsThermostat “learns”thermal, consumerand weather impacts
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Reducing Peak with Prices to DevicesSM
Reduce peak while maintaining comfort and productivity
UtilityCommunications
DistributionOperations12
Midnight12
Midnight12
Noon
Demand
PreCool
ReducePeak Demand
Recover
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For utilities:• Manage electricity distribution more efficiently and reliably through real-time
information• Reliably anticipate peak demand--and effectively encourage consumer
reduction• Reduce costs with an investment strategy that protects against obsolescence• Be environmental leader through energy and demand reduction• Improve customer satisfaction
Benefits of the Dynamic Energy Infrastructure
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Benefits of a Dynamic Energy Infrastructure(continued)
For consumers:• Control their own energy usage• Reduce energy bills• Make a positive impact on the environment
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Benefits of a Dynamic Energy Infrastructure, (continued)
For regulators and policymakers:• Save energy and reduce demand• Empower consumers to control energy usage and costs• Meet policy goals using new technologies• Respond to environmental pressure groups
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2006 Summer Seminar: Advancing Energy Efficiency and End-Use Technologies
• Joint meeting of EPRI Board and Advisory Council, plus invited guests– 150 leaders representing 94 different organizations
• Utilities (U.S. and International)………………………………………43 • Regulators (State and Federal)………………………………………10• Academia/NGOs/Government………………………………………..18• Consumers/technology and equip. suppliers/architects/others......23
• Significant breakthrough statements– Jim Rogers, CEO, Duke Energy
• EE is 5th fuel, utilities need to change mission, regulatory pact– Diane Munns, President, NARUC
• Regulators need to enable utilities to make money
Significant opportunity to improve efficiency and effectiveness of energy use
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Four Building Blocks: Dynamic Energy Management
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EPRI Board of DirectorsAd-Hoc Committee on Energy Efficiency
• Michael Chesser (Chair), Great Plains Energy(also the Chair of EEI Task Force)
• Charles Shivery, Northeast Utilities• Richard Silverman, Salt River Project• Steve Hickok, Bonneville Power Administration• Kathryn Jackson, Tennessee Valley Authority• Tony Ahern, Buckeye Power• Michael Dworkin, Vermont School of Law• Nick Brown, Southwest Power Pool
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Energy Efficiency Regional Workshops
West Central
South
North East
SCE (Los Angeles, CA) October 31, 2006
TVA (Knoxville, TN) November 9, 2006
NU (Hartford, CT)December 13, 2006
Great Plains Energy (Kansas City, MO) November 3, 2006
EPRI (Washington, DC) November 8, 2006
Mid-Atlantic
150 Attendees85 Organizations
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Workshop Results – Overall
• There is enthusiasm for energy efficiency and demand response – the time is now
• EPRI should do this!• There are both immediate needs and longer-term
requirements: need some tactical results to enable support for a long-term program
• There is a need for catalyzing technology development• Regulatory barriers need to be addressed
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Energy Efficiency InitiativeJanuary 31, 2007 – Kansas City
• 50 participants• Over 30 organizations• 16 members have signed Expression of Interest• 13 signed at SummitTarget:• 40+ members• $5.0M funding
Michael ChesserChairman and CEOGreat Plains Energy
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Elements of the Research
Energy Analytics• Assessments and tools:
technical, economic andenvironmental
Infrastructure• Enabling dynamic energy
management, “prices to devices”
Smart and EfficientEnd-Use Devices• C&I focus in year one
AnalyticsAnalytics InfrastructureInfrastructure
Smart & EfficientEnd-Use DevicesSmart & EfficientEnd-Use Devices
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Start Today to Meet Long-Term Objectives with No-Regrets Investments
Ana
lytic
sIn
fras
truc
ture
Smar
t Dev
ices
Short-Term Mid-Term Long-Term
DeployExisting
Technology(Where to PutResources?)
Design BasisFramework &Technology
Dynamic Energy
Management Systems
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$$$
Dynamic Energy Management Research Needs
Historic• Low time-of-use
rate penetrationand response
• Limited verification
• Modest useof load control
Tomorrow• Standardized
design
• Interoperabledevices
• Make it simpleand automated
Future• Learn and adapt
to consumer and building behavior
Evolve toProvidefordevelopment
Enable
AutomatedDemandResponse
$ UbiquitousSystem$$ Dynamic
Systems
Can the Dynamic Energy Management Vision Be Justified ByIts Benefits to Utilities, Consumers, and the Society at Large?
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EPRI’s Energy Efficiency Initiative
Research to advance the efficient and effective use of energy
Analytics Smart End-Use Devices
Infrastructure
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Analytics
Analytics
• Guidebook for demand planning • Methods for calculating environmental (CO2) benefits of dynamic
energy management• Strategies for making long-term infrastructure investments today• Assessments of economic impact of dynamic energy management,
including verifiable demand response levels
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Dynamic Energy Infrastructure
• Cost-benefit assessment of advanced metering and demand response systems
• Specifications for dynamic energy management interoperability • Access to a “living laboratory” to assess technologies and work with
vendors• Plans for dynamic energy management infrastructure design basis
Infrastructure
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Smart and Efficient End-Use Devices
• Specifications for commercial building intelligence interface• Access to EPRI clearinghouse for commercial and industrial
technologies (e.g., what works and what doesn’t)
Smart End-Use Devices
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Next Steps
• Funding Requirements: $5M• Number of Participants Required: 30–50• Timeframe:
– Funding Commitment: February 28, 2007– Executive Steering Committee Established: February 2007– Work Initiated: February 2007 – Public Advisory Group established: March 2007--First meeting:
April 23, 2007
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Public Advisory Group
Gain commitment of key public sector stakeholders to help shape the landscape for dynamic energy management
Advice and outreach
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How Can We Work Together?
• Embrace the vision; help move it forward
• Coordinate and cooperate in research• Fund the EPRI research initiative • Participate in EPRI Public Advisory
Group
Will You Join Us In Being Part of This Important Initiative for our Nation?
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Together…Shaping the Future of Electricity