Heat Pump Water Heating- Delivering Demand Response From The Wholesale Local Power Companies
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1 Heat Pump Water Heating- Delivering Demand Response From The Wholesale Local Power Companies Presented by Anna Morgan-TVA Program Manager in Demand Response 2013 ACEEE Hot Water Forum Hyatt Regency Atlanta November 3-5,
2 Service Territory Overview TVA is a corporation owned by the U.S. government & largest Public power Entity Provides electricity for 9 million people across parts of 7 Southeastern states Most of Tennessee and parts of Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia Area of 80,000 square miles Supplies up to 33,716 MW of electricity, delivered over 16,000 miles of high-voltage power lines Funded by sales of electricity; TVA makes no profits and receives no taxpayer money TVA operates 29 hydroelectric dams, 11 coal-fired power plants, 3 nuclear plants and 11 natural gasfired power facilities TVA also provides flood control, navigation, land management and recreation for the Tennessee River system and works with local utilities and state and local governments to promote economic development across the region 2
3 7 Customer Service Districts 3
4 4
5 IRP Key Components Demand Response Energy Efficiency Facilitate changes in electric usage by consumers from their typical consumption patterns Establish platforms to respond to changes in the price of electricity over time Analyze load reduction methodologies at times of high wholesale market prices or when system reliability is jeopardized. Is an inexpensive (average 2.1 cents/kwh) hedge against market price spikes Is part of TVA s resource strategy Is not subject to Fuel Price Risk or Carbon Control Risk Is clean and has no potential costs associated with emissions or emission clean up Investments create jobs and stimulate local economies. All investment is local Programs make economic sense by helping customers manage their energy budget by lowering their power bill. 5
6 Technology Roadmap Background What is our current state? Where are we going? Results Empowered some Left some in a technology quandary Still left some unanswered questions 6
7 Where do Heat Pump Water Heaters fit into the Equation? Heat Pump Water Heaters Diversified Demand Tests in Glasgow KY demonstrate a diversified demand of.25kw Why invest in a Controller? Proper operation demonstrates 50%+ energy savings Commercial HPWH s competes well against NG 7
8 Heat Pump Water Heater Market Barriers Lack of Up to 50% energy savings but market barriers exist. High First Cost Distressed Purchase Consumer Skepticism Installation Concerns 8
9 Heat Pump Water Heater EPRI Project TVA is piloting an EPRI Coordinated Early Deployment HPWH project testing an Upstream Model Using the equipment distributor Ferguson Enterprises as the channel for GE GeoSpring and the State Premier Hybrid units. Sales and installation training conducted by manufacturer representatives $400 per unit incentive administered by Ferguson to the installing plumbing contractors based upon a tiered sales approach ($250 first 7 sales; $300 there after) Contractor decides what to do with incentive, i.e. sales spiff, installer spiff No mention of TVA or the Local Power Company EPRI does customer satisfaction survey and sampling of installation inspection 9
10 TVA HPWH Early Deployment Plan Purpose Test market strategy Confirm energy savings 6 months later When 125 units are installed October 1
11 Leverage the Wholesale Distributor Network to
12 Who Does What? 8 Top Contractors Homeowners $400 per HPWH for 125 units Inspections Stock, train Pass on incentive Provide information Sell HPWHs Installer survey Invoice Homeowner Survey and inspection
13 Questions & Contact Information William Bill G. Jackson Jr. Senior Consultant Tennessee Valley Authority (615)
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