3. Business Case
6. Success Criteria
7. Next Steps
|Automated Demand Response Facilitates Communication between System Operators and Devices in the Home|
- Research indicates that consumers are ready to engage with the Smart Grid as long as their interface with the Smart Grid is simple, accessible, and in no way interferes with how they live their lives. Consumers are not interested in sitting around for an hour a day to change how their house uses energy; what they will do is spend two hours per year to set their comfort, price and environmental preferences – enabling collaboration with the grid to occur automatically on their behalf and saving money each time.
- Customers want their Demand Response to be Automated
- 1% would select a 10% flat rate increase to be able to use electricity at the same price any time
- 15% prefer to manage their own TOU/CPP electricity use based on a transmitted price signal
- 17% prefer utility dispatched direct load control
67% prefer set and forget appliances that react to utility price signals (with consumer override possible)
- Auto-DR technology enables customers, either with or without assistance from their electric service provider, to pre-program load reduction strategies into smart devices such as Energy Management and Control Systems. Once programmed, load is then automatically reduced based on communication signals from the utility without the need for any further customer intervention; although a manual over-ride option would generally be accommodated.
- AutoDR is a communication and technology platform designed to:
- Provide customers with automated, electronic price and reliability signals
- Provide customers with the capability to identify and automate site specific demand response strategies
- BIP - PG&E Base Interruptible Program - Reliability Response DR Program
- Demand Side Management - A smart grid will constantly monitor its load and (this is the smart bit) take particular consumers offline, with their prior agreement and in exchange for a lower price, if that load surges beyond a preset level
- DRAS - Demand Response Automation Server - Automates delivery of messages between the Utility/ISO and the Participant.
- Communications with the DRAS should use readily available and existing networks such as the internet.
- The DRAS interfaces should be platform independent and leverage existing standards such as XML and Web Services.
- The DRAS communications should use a security policy that enables non-repudiation and encryption of the communications with the DRAS.
- The DRAS should support communications with a variety of control systems that may range from a very simple EMCS (Simple DRAS client) to those with sophisticated data processing and programming capabilities (Smart DRAS client).
- 2.0a - Does not facilitate real-time meter reading
- 2.0b - eatures ability to communicate real-time meter data through the DRAS, then back to the business.
Combination of devices will be used.
|Eligible Client Architecture – Lead/Resource|
3. Business Case
- When the need for a demand side change arises (whether electrical power consumption should be reduced or increased), the OpenADR 2.0 server creates an OpenADR 2.0 event message, which can contain a variety of information identifying the target energy resources, the type of curtailment or energy adjustment, and other scheduling functions. The OpenADR 2.0 client receives the message and acts upon it. The energy resource on the client side can also opt in or out of the DR event, and provide feedback back to the client. The entire interaction happens over an existing Internet connection and completes in milliseconds.
- Reducing peak demand in America by a mere 5% would yield savings of about $66 billion over 20 years, according to Ahmad Faruqui of the Brattle Group, a consultancy that has worked with utilities on designing and evaluating smart-meter pilot programs. Moreover, studies have shown that the best in-home smart-grid technologies can achieve reductions in peak demand of up to 25%, which would result in savings of more than $325 billion over that period.
- In making real-time grid response a reality, automated demand response makes it possible to reduce the high cost of meeting peak demand. It gives grid operators far greater visibility into the system at a finer “granularity,” enabling them to control loads in a way that minimize the need for traditional peak capacity. In addition to driving down costs, it may even eliminate the need to use existing peaker plants or build new ones – to save everyone money and give our planet a breather.
- The utility assess the need for an ‘event’
- A Web Service message is initiated – standard Demand Event XML
- Receiving system ‘interprets’ message
- Event sequence initiated at building level
- Building enters change in state – normal -> load shed
- Building reports back status – yes, entered load shed
- Building reports power usage change
- Continuous and Reliable - Provides continuous, secure, and reliable 2 way communications infrastructure.
- Translation - Translates DR events into continuous internet signals
- Automation - Receipt of signal designed to initiate automation
- Opt-Out - Provides opt-out or override function
- Complete Data Model – Describes model and architecture to communicate price, reliability, and other DR activation signals.
- Scalable – Provides scalable architecture scalable
- Temperature Reset
- Limit or Shut Off Lighting
- Shut Down Irrigation Pumps
- Curtail Industrial Processes (manufacturing)
- Curtail Municipal Water Pumping
- Curtail Refrigeration Load (cold storage)
- Cycle Off Rooftop Package Units (HVAC)
- Curtail Battery Chargers (forklifts, carts, manufacturing)
- Limit Air Handler Fan Speeds
- Limit Demand On or Turn Off Chillers (HVAC)
- Limit Demand On or Shut Down Air Compressors
- Shut Down Exhaust Fan / Dust Collectors
|Automated Demand Response Information Flows|
- Resource Management - Feedback allows grid operator to see the load shed in real time
- Load Leveling - Results of the LBL tests show that AutoDR-enabled buildings can achieve an average peak demand reduction of 10 to 14 percent
- Shorter Lead Time – Dynamic Pricing Options - CPP and PTR - usually require notification a day in advance of the DR event occurrence (See Blog Article). Auto-DR is an enabling technology which can facilitate end-use load response within a much shorter timeframe. Therefore, pricing options coupled with enabling technology can respond to DR events with an hour notification.
- Facilitate Intermittent Renewables - DR can help integrating intermittent resources as long as program design and technology need to evolve to allow DR use more than in a few stress hours per year
- Taps Consumer Market - Facilitates “shallow DR” which allowing more customers to participate. An EMCS can trim 5-10% of load, and do this with intelligent strategies that minimize occupant discomfort
- Visibility (telemetry): System Operator needs to know about DR’s actual performance in order to adjust its short-term dispatch.
- Benefits to Business
- Reduce peak demand energy costs
- Lower operating costs—increased property value
- Prepare businesses for dynamic pricing
- Greater facility control and monitoring
- Easier participation in DR events
|Small loads represent 71% of the DR opportunity in PG&E's service territory. Without new smart grid technology, this market is not available.|
- Security - Simply put, most facilities don't want to open their building automation system firewalls to commands coming from the outside. OpenADR has gotten around that problem by setting up servers at customer sites that "poll" the network to search for OpenADR commands, she said. That's like inviting approved messages in, rather than trying to screen all calls.
- Difficult to Use - Many customers would only be interested in demand response if it were very easy to use, since the delta in cost is too small for them to spend much time or effort in it.
- No Common Pricing Model Standard - The need for a common pricing model crosses all domains that use price. Price is more than a simple number; it carries market context, and information such as quantity, units, time for use, and characteristics including source type and potentially carbon characteristics. A common and interoperable pricing model is a key to Demand-Response systems, Dynamic Pricing in all its forms, and energy markets and trading including forward markets.
- Complex Tariff Structures and Content - To fully understand a price one needs to fully understand thousands of pages of tariffs for each jurisdiction. Driving toward simplified tariffs or at minimum machine-readable descriptions of tariffs would lead to more efficient markets.
- Lack of Standards for the DR signals to DER devices. - There are competing standards and specifications that include OpenADR, NAESB, and others. A common standard for communicating to both load control and supply control devices will help accelerate DR implementations at the utilities and DER device manufacturing with products.
- Market information is currently not available to the customer domain. Without this information, customers cannot participate in the wholesale or retail markets. In order to include customers in the electricity marketplace, they need to understand when opportunities present themselves to bid into the marketplace and how much electricity is needed. Once a bid is made, the contractual obligation to commit the accepted amount of electricity for the set period of time needs to also be communicated in a standard way.
- Managing DER Devices is Manual - As DER devices become pervasive and consumers can buy them at retail stores, the complexity of provisioning and tracking all the DER devices must be automated. The DERs may be provisioned at the premise energy management system (EMS) and allow the EMS to aggregate and report total premise DER baseline capabilities. Or the DERs may announce themselves to the service provider or utility or perhaps even the ISO. Both of these approaches use device discovery and profiles. Regardless, these reporting and management issues need to be resolved and an automated mechanism for announcing, configuring, and removing devices must be standardized or we limit opportunities for wide-spread adoption of DER and limit the amount of efficiency we can create in the system. Measurement and verification of demand reduction is of growing importance, with many issues such as what is the baseline, or is the device actually off. (See Distributed Energy Resources Blog Article)
6. Success Criteria
- At the residential level, demand response must be simple, “set-it-and-forget-it” technology, enabling consumers to easily adjust their own energy use. Equipped with rich, useful information, consumers can help manage load on-peak to save money and energy for themselves
- Client-server architecture - uses open interfaces to allow interoperability with publish and subscribe systems. Internet is available at most large facilities
- Tariff design to enable consumers and manufacturer understanding of benefits and business cases.
- Quantify value of home / device response
- Appliance / device manufactures determine how their products can respond handle the consumer interface relative to their products and consumer preferences
- Consumer incentives (purchase & cost of ownership)
- Automation: need fast, continuous and confirmed response to over/under forecast deviations of intermittent generation
- Allow grid operator to see the load shed in real time
- People buildings - Offices, retail, hotels, education, hospital = Goal with DR: reduce load without noticeably reducing comfort
- Process facilities - Manufacturing, cold storage, pumping applications = Goal with DR: reduce load with acceptable reduction in productivity
7. Next Steps
- Develop and standardize a pricing model – NIST plans to work with IEEE, IEC, OASIS, ASHRAE, NAESB and other relevant SDOs to develop an approach for developing a common pricing model to traverse the entire value chain. The model must include price, currency, delivery time, and product definition.
The need for a common pricing model crosses all domains that use price. Price is more than a simple number; it carries market context, and information such as quantity, units, time for use, and characteristics including source type and potentially carbon characteristics. A common and interoperable pricing model is a key to Demand-Response systems, Dynamic Pricing in all its forms, and energy markets and trading including forward markets.
The complexity of tariff structures and content means that to fully understand a price one needs to fully understand thousands of pages of tariffs for each jurisdiction. Driving toward simplified tariffs or (at minimum) machine-readable descriptions of tariffs would lead to more efficient markets. For example, the machine-readable tags for end user license agreements have simplified licensing decisions; a similar markup language for tariffs would allow better decisions in markets without implicit knowledge beyond price.
- Develop market signal standards – NIST plans to organize a meeting with policy makers, market operators/ISOs, and standards committees to develop common syntax and semantics for communicating market opportunities through the value chain and all the way to the customer. The effort shall develop policies that protect customers, but allow them to participate in the market. This is not an immediate need, but is something that requires a lot of thought and situational analysis.
- Develop DER discovery and profiling standards – NIST plans to coordinate a meeting with IEC TC57, OASIS, NAESB, and AMI-ENT for developing standard mechanisms for DER device discovery and profiling, persistence checks, and registry updates. The effort shall develop standard mechanisms for DER device discovery and profiling, persistence checks, and registry updates.
- Develop or adopt standard DR signals – NIST plans to organize a meeting with IEC TC57, OASIS, NAESB, and AMI-ENT to specify a process for developing a common semantic model for standard DR signals. The effort shall ensure DR signal standards support load control, supply control, and environmental DERs
- Field Testing - Only through large-scale field programs spanning many years, can answers to these questions emerge.
- Title 24 2013 - In California, the 2014 Title 24 energy code contains new requirements for demand responsive controls and equipment capable of receiving and automatically responding to a standards-based messaging protocol for automated demand response. This regulatory requirement applies to newly constructed or renovated buildings over 10,000 square feet. Equipment impacted includes energy management systems, lighting controls and thermostats.
alifornia's investor owned utilities are using OpenADR as the basis for their AutoDR programs, so the new Title 24 requirement should result in significant growth in California starting this year.
- Akuacom, San Rafael, CA, purchased by Honeywell in May 2010 and will be part of the Honeywell Building Solutions unit, part of the Honeywell Automation and Control Solutions business group.
The software company developed PG&E’s OpenADR communications infrastructure. The demand response automation server at the core of the infrastructure is based on a close partnership between Berkeley Lab and Akuacom.
- Energy Solutions - Oakland, CA - Manages PG&E's DR Program
- Hawaii Electric Company (HECO) is currently testing renewable intermittency using an OpenADR-based architecture.
- Honeywell, (NYSE: HON) the controls giant, is using an $11.4 million Department of Energy smart grid grant it won in 2009 to build an OpenADR-based system with utility Southern California Edison. The Honeywell project seeks to automate the utility's Critical Peak Pricing program, which offers commercial and industrial customers lower rates and credits for turning down their power use during the few hot summer days when demand is at its highest. About 700 commercial and industrial customers are to participate.
- Integral Analytics, Cincinnati, OH - Their IDROP Software (Integrated Dispatchable Resource Optimization Portfolio) uses the Smart Grid in a novel approach – to allow the utility to proactively manage the customers within the Smart Grid in a manner much like the utility has treated their generation resources. Specifically, IDROP allows the utility to optimize at a systems level, the micro-dispatch of appliances, electric vehicles, photovoltaic generation, wind generation, and distributed storage units, such that the utility can maximize its value, given customer-established constraints, cost of service, compliance histories, expected load, and market prices.
You get a sense of the scale of the problem when you realize how much data the system has to juggle. First, think about all the data from smart meters and smart sensors. Then think about all the data that needs to be taken into account for the network -- historical usage patterns, weather forecasts, wind and solar forecasts, transformer characteristics, feeder characteristics, distributed storage characteristics and much more. Then think about the data for each and every customer:
- Customer parameters (such as historical usage and likelihood of opting out of a DR event)
- Comfort parameters (for instance, how much temperature variation each customer will tolerate)
- Appliance parameters and duty cycles (for instance, how often you can cycle an air conditioner without voiding the warranty)
- Electric vehicle parameters (time to a full charge, time until next likely use, owner preferences, etc.)
- Imagine that mountain of data. Now imagine analyzing and optimizing it in real time. It’s the ultimate balancing act. It will eventually require us to fine tune millions of appliances minute by minute while also responding to hundreds of thousands of fluctuating solar panels and wind generators.
- Open ADR Alliance - - Morgan Hill, CA - The mission of the OpenADR Alliance is to foster the development, adoption, and compliance of the Open Automated Demand Response (OpenADR) standards through collaboration, education, training, testing and certification. members
Open ADR standard is available
- PIER Demand Response Research Center at Lawrence Berkeley Lab
- Connectivity Week 2009 - Automating Demand Response
- PIER Demand Response Research Center - Demand Response R&D Symposium: Poster Presentations November 30, 2004
- OpenADR WebsitePIER/LBL
- UCA Open Smart Grid (OpenSG) Docs:
- EPRI Report: Concepts to Enable Advancement of Distributed Energy Resources, February 2010,
- OpenADR not just a "California technology" By Barry Haaser, Managing Director, OpenADR Alliance, July 30, 2014