Automated Demand Response using the Internet of Things An Opportunities Assessment

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1 Automated Demand Response using the Internet of Things An Opportunities Assessment Ramesh Hariharan CompuSharp Inc. Aug 17, 2016

2 Today: we will discuss Power Systems Operation and Control Automatic Demand Response Internet of Things IOT ADR with IOT

3 Priorities of Power Systems Operations A utility perspective Security Continuity, safety from attacks Quality Frequency, voltage, harmonics Economy Including a reduced environmental impact

4 Priorities of Power Systems A consumer perspective Reliability Economy Convenience Social/Environment conscious

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6 Moc

7 Operating States of Power Systems Normal Alert Emergency Restorative

8 Hierarchy of Control Generation/Transmission/Grid Distribution Customer Large, SMB, Residential

9 Enabling Technologies & Components SCADA Sensors, RTU s, Communication Transmission Application Software State Estimation, AGC, OPF Distribution Application Software Load Balancing, Volt/VAR

10 Enabling Technologies & Components SCADA Sensors, RTU s, Communication Transmission Application Software State Estimation, AGC, OPF Distribution Application Software Load Balancing, Volt/Var Demand Response

11 What is Demand Response? Owners Can defer construction of new power plants to meet peak demand. Customers Lower consumption when grid reliability is jeopardized, or energy prices spike.

12 What is Demand Response? Owners Can defer construction of new power plants to meet peak demand. Customers Lower consumption when grid reliability is jeopardized, or energy prices spike.

13 Why Demand Response? Electricity providers can save money by reducing peak demand and deferring construction of new power plants. Electric system planners and operators can balance supply and demand. Customers can play an active role in the efficient utilization of the electric grid.

14 Why Demand Response? Electricity providers can save money by reducing peak demand and deferring construction of new power plants. Electric system planners and operators can balance supply and demand. Customers can play an active role in the efficient utilization of the electric grid.

15 Why Demand Response? Electricity providers can save money by reducing peak demand and deferring construction of new power plants. Electric system planners and operators can balance supply and demand. Customers can play an active role in the efficient utilization of the electric grid.

16 Types of Demand Response Incentive-based demand response Pay customers to reduce loads in response to grid reliability issues or high electricity prices. Price-based demand response Provides customers with rates that reflect the cost of electricity in different time periods. Real-time pricing (RTP) Critical-peak pricing (CPP) Time-of-use (TOU) tariffs Others

17 Types of Demand Response Incentive-based demand response Pay customers to reduce loads in response to grid reliability issues or high electricity prices. Price-based demand response Provides customers with rates that reflect the cost of electricity in different time periods. Real-time pricing (RTP) Critical-peak pricing (CPP) Time-of-use (TOU) tariffs Others

18 ADR Players Utilities Regulators Standard organizations Market (ISO s) Aggregators (including DRAM) Power Producers Customers Device Manufacturers Cloud providers

19 Automatic Demand Response (ADR) Customers directly connect to the utility s energy management system (EMS). EMS sends control signals directly to the customer s equipment during DR events. OpenADR An open messaging standard for communicating with equipment at customer facilities.

20 Automatic Demand Response (ADR) Customers directly connect to the utility s energy management system (EMS). EMS sends control signals directly to the customer s equipment during DR events. OpenADR An open messaging standard for communicating with equipment at customer facilities.

21 Automatic Demand Response (ADR) Customers directly connect to the utility s energy management system (EMS). EMS sends control signals directly to the customer s equipment during DR events. OpenADR An open messaging standard for communicating with equipment at customer facilities.

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23 Economic incentives of ADR Participant benefits Incentives and savings earned by customers that adjust their demand in response to time-varying rates. Market wide economic benefits Lower wholesale market prices from not running high cost power plants during periods of high demand. Reliability metrics SAIDI / SAIFI Typical incentives offered by utilities Automatic demand response $200/kW Advanced technology HVAC/R $350/kW Advanced technology lighting $400/kW

24 Economic incentives of ADR Participant benefits Incentives and savings earned by customers that adjust their demand in response to time-varying rates. Market wide economic benefits Lower wholesale market prices from not running high cost power plants during periods of high demand. Reliability metrics SAIDI / SAIFI Typical incentives offered by utilities Automatic demand response $200/kW Advanced technology HVAC/R $350/kW Advanced technology lighting $400/kW

25 Economic incentives of ADR Participant benefits Incentives and savings earned by customers that adjust their demand in response to time-varying rates. Market wide economic benefits Lower wholesale market prices from not running high cost power plants during periods of high demand. Reliability metrics SAIDI / SAIFI Typical incentives offered by utilities Automatic demand response $200/kW Advanced technology HVAC/R $350/kW Advanced technology lighting $400/kW

26 Economic incentives of ADR Participant benefits Incentives and savings earned by customers that adjust their demand in response to time-varying rates. Market wide economic benefits Lower wholesale market prices from not running high cost power plants during periods of high demand. Reliability metrics SAIDI / SAIFI Typical incentives offered by utilities Automatic demand response $200/kW Advanced technology HVAC/R $350/kW Advanced technology lighting $400/kW

27 Systems touched by ADR Control Systems (SCADA/EMS/DMS/DR) Metering Systems Customer Information System WiFi, LAN, Dedicated Networks Analytics (Big-Data) Cloud

28 Systems touched by ADR Control Systems (SCADA/EMS/DMS/DR) Metering Systems Customer Information System WiFi, LAN, Dedicated Networks Analytics (Big-Data) Cloud Internet of Things

29 Slide credit: Postscapes & Harbor Research

30 Internet of Things (IoT) The infrastructure that allows sensing and controlling of objects remotely using existing and evolving technologies thus enabling advanced services resulting in quantifiable quality of life improvements and economic benefit. Integration of the connected world the internet with the real world and the real world has things

31 Slide credit: Postscapes & Harbor Research

32 Slide credit: Postscapes & Harbor Research

33 Slide credit: Postscapes & Harbor Research

34 Slide credit: Postscapes & Harbor Research

35 Slide credit: Postscapes & Harbor Research

36 Slide credit: Postscapes & Harbor Research

37 Slide credit: Postscapes & Harbor Research

38 Slide credit: Postscapes & Harbor Research

39 Slide credit: Postscapes & Harbor Research

40 Slide credit: Postscapes & Harbor Research

41 Slide credit: Postscapes & Harbor Research

42 Essential features of IoT Object identification and detection Automatic data capture AutoID-to-resource allocation Compatibility Interaction between objects

43 Barriers to widespread ADR Adoption Cost of Implementation Customer Education Ease of integration

44 ADR and IOT Cost of Implementation Millions of devices can participate with minimal to no infrastructure investment Customer Education The new generation is internet savvy Ease of integration Consumers can define rules to control their environment

45 Demand Response in IoT Two-way information and power transfer capabilities enables IoT to control smart device. This paves the way for IoT-enabled demand response. Some of the features required in smart devices: Communication Addressability Sensing and Actuation Interoperability Information Processing User Interfacing

46 Layers of an IoT - ADR system Device Layer Senses and collects data, and controls electrical appliances. Network Layer Connects devices to the application layer. Application & Cloud Layer Hosts the workflows needed for ADR. Data storage and information retrieval.

47 Layers of an IoT - ADR system Device Layer Senses and collects data, and controls electrical appliances. Network Layer Connects devices to the application layer. Application & Cloud Layer Hosts the workflows needed for ADR. Data storage and information retrieval.

48 Layers of an IoT - ADR system Device Layer Senses and collects data, and controls electrical appliances. Network Layer Connects devices to the application layer. Application & Cloud Layer Hosts the workflows needed for ADR. Data storage and information retrieval.

49 IoT protocols for ADR CoAP Constrained Application Protocol A web transfer protocol for use with constrained devices and networks. Easily interfaces with HTTP. MQTT Message Queue Telemetry Transport A simple and lightweight messaging protocol suitable for low bandwidth and unreliable networks. XMPP Extensible Messaging / Presence Protocol Enables exchange of structured data between two or more network entities, including: Interoperability, Security, Scalability, Low latency

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54 ADR and IOT Cost of Implementation Millions of devices can participate with minimal to no infrastructure investment Customer Education The new generation is internet savvy Ease of integration Consumers can define rules to control their environment

55 Today: we discussed Power Systems Operation and Control Automatic Demand Response Internet of Things IOT ADR with IOT

56 Q & A

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