Demand Response to End Load shedding November , Energie Dynamique Private Limited

Transcription

1 Demand Response to End Load shedding November , Energie Dynamique Private Limited

2 Pike Research Demand response (DR) con4nues to evolve as the smart grid s killer applica+on, leveraging technology infrastructure to deliver measurable value to u4li4es, grid operators, and customers alike. Because the DR services sector s4ll represents an evolving market, it is currently rela4vely small with an es4mated worldwide spending of $1.3 billion in Thanks to a variety of posi4ve market forces, especially the widespread installa4ons of smart meters, this market is projected to experience a robust compound annual growth (CAGR) rate of 37% to become a mul4- billion market by Of the three key segments, curtailment services are the largest with an expected global market of $748 million in The systems integra+on/consul+ng services and outsourcing markets also offer promising opportuni4es for demand response vendors with CAGRs of 32% and 31% respec4vely, on a worldwide basis.

3 The challenge.. ~ 7-9% Economic Growth = 7-9% growth in power requirements??? ~ 10-15% power shortages ~ 400m people without access to grid connected electricity ~ 20% shortage in coal supply Rising Fuel Prices Dependence of imported fuel ~ Peak growth accelera4ng faster than base load. India s electricity prices are well below global average Pressure on regulators to increase tariff Involuntary & indiscriminate load shedding = a barrier to economic growth, risk to grid stability and social unrest. The supply chain cannot deliver projects fast enough. Environmental concerns over thermal genera4on. In general Customers have no rights.

4 An Intelligent Solu4on Opportunity Untapped poten4al of ac4ve consumer par4cipa4on Solution Create the environment to make the demand- side part of the solu4on. Demand Response: End indiscriminately, involuntary load shedding. Defer investments in addi4onal genera4on. Defer investments in transmission upgrades Reduce stress on Genera4on plant Empower customers and improve customer sa4sfac4on. Provide ancillary services on a wholesale market. Reduce carbon emissions Improves energy availability Lower overall price of electricity.

5 What is Demand Response Demand Response (DR) is a set of ac4ons taken to manage the load when situa4ons such: overload, emergencies or conges4on occur that threaten the supply- demand balance DR is an load management program through which energy users can earn revenue by agreeing to curtail their electricity consump4on when requested.

6 A change in thinking. Change to balancing load to meet capacity availability. Change from balancing demand by adding capacity.

7 The Virtual Power Plant. When aggregated, par4cipants will create a virtual green power plant which can deliver NegaWads just as a GenCo. can deliver MegaWads. VPP!

8 Perfect Scenario Every connected customer will have a smart meter. Tariff will be according to 4me of use or grid condi4ons (availability) Market dynamics will balance supply and demand automa4cally

9 Methods that can work today 1. At the DisCom level on a bilateral contract basis with a fixed price based on cost of average purchase. 2. As a balancing product on the wholesale market. (Demand Bidding)

10 DisCom Method 1. U4lity experiences a crisis situa4on 2. Sends curtailment request to DR Aggregator 3. DR Aggregator send instruc4on to par4cipants to reduce load 4. Par4cipants manage opera4ons to curtail load. 5. Load is reduced un4l crisis passes 6. U4lity no4fies DR Aggregator that event is over. 7. DR Aggregator informs par4cipant that event is over and normal opera4ons can be resumed. Event called Curtailment Reduces burden on grid Event over Demand Response Leads to Grid Relief & can avoid Blackouts

11 Example of a DR Event Light blue line = outside air temperature Brown line = Baseline consump4on (es4mated based on previous similar days) Dark blue line = actual metered consump4on Purple line = power saved by the curtailment (calculated as actual power consumed minus baseline amount)

12 Demand Bidding Method An effec4ve means to sell Demand Side Resources in an energy market. A tool to bid NegaWad ( NW ) capacity into the wholesale electricity market at a price adrac4ve enough for par4cipants to curtail a quan4ty of their load for a specified period of 4me. NegaWads are traded in the same way as MegaWads Par4cipa4ng consumers must either reduce load as contracted or face a penalty.

13 Demand Bidding Method Considering Demand Bidding capacity as per a supply station, impact on price stacking.

14 Impact on overall price P X MCP Price ($/MWh) Price reduction PDR X MCPDR Demand reduction Demand (MW) DDR D

15 Rela4vely simple process DisCom or Exchange Aggregator s Control Centre Consumer M

16 Measurement & Verifica4on DR Performance VPP DR Performance Consump4on (Customer Baseline ) Consump4on as measured during DR Event

17 Measurement & Verifica4on What is the Standard for Baseline? Industry, Regulators and Academia has done immense work on baseline Accepted versions are 10 in 10 Methodology or 3 in 10 Methodology How is the Baseline calculated? Average of last ten or three similar days consump4on depend upon the methodology selected DR event day/holidays/abnormal days/data error days are excluded

18 Benefits vs. Genera4on Can provide all the benefits of a peaking power plant Fast to deploy Requires no addi4onal T&D infrastructure Reduces system losses and pollu4on Drives energy efficiency with large power consumers

19 Benefits UTILITY Improved load management. Improved revenue (lower cost power) CONSUMER Financial incen4ve to reduce waste Focus on long term efficiency and cost reduc4on. Contribute to supply stability. ENVIROMENT Reduc4on in wastage Reduc4on in emissions REGULATOR Provides a proven method to quickly relieve the power shortage problem and Addresses pollu4on issues without capital expenditures Posi4ve socio- economic impact. ECONOMIST Low cost solu4ons with fast results. DR is considered No1 in the Loading Order (most cost- effec4veness of solu4ons to meet power demand) in California.

20 Next Steps Pilots!! Create the right regulatory frameworks Mo4vate the demand (par4cipants) and create a market. Develop plans with DisComs to see how they can replace (some) load shedding with DR

21 2011, Energie Dynamique Private Limited Thank You