Smart Buildings in a Smart Grid

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1 Smart Buildings in a Smart Grid ASHRAE, Minneapolis, October 17, 2012 The smart grid is turning out to be a journey rather than a destination. It's all too easy to forget why we collectively decided to embark on the journey in the first place, so this presentation will highlight the energy production, delivery and consumption scenarios we're facing now and in the future. Challenges facing the power grid now and in the future, and how buildings are affected Peak demand situations and how they are being handled today Integrated automation, and how it improves energy reliability Christian Grant Siemens Smart Grid, Energy Automation Applications Thomas Liesenfeld Siemens Building Technologies, Smart Consumption Program

2 Smart Buildings in a Smart Grid ASHRAE, Minneapolis, October 17, Why Smart Grids? 2 Smart Building & Smart Grid: the situation today 3 Smart Building & Smart Grid in the future

3 1 Why Smart Grids? Why are we investing in Smart Grid technology?

4 The Smart Grid catalyst came to a head in 2005 and Reserve Margin % North American Reserve Margins 2004 to 2010 Utility Smart Grid Motivation In 2005 and 2006 reserve margins breached the NERC limit of 15% At the same time and since, regulatory and permitting requirements on building new, fossil-fuel power stations increased limiting large scale projects Limit Collectively, these two factors increased the attractiveness of demand management and system efficiency tools Renewable portfolio standards began to kick-in, forcing utilities to deploy scarce resources in renewables FRCC 1 NPCC 1 Balance of Eastern Region 1 TRE 1 WECC 1 Contiguous U.S. Managing two-way power at the distribution level also prompted smart grid activity Source: Energy Information Agency, Electric Power Annual 2010; Table 4.3.A - Summer Net Internal Demand, Capacity Resources, and Capacity Margins by North American Electric Reliability Assessment Area, Actual 1) FRCC = Florida Reliability Coordinating Council; NPCC = Northeast Power Coordinating Council; TRE = Texas Regional Entity; WECC = Western Electric Coordinating Council

5 1 At the transmission level, renewable generation is intermittent. Production and consumption don t match. 0

6 1 At the distribution level, changing demand patterns due to local generation strain existing grid infrastructure Example for a rural area with a high penetration of on-site solar cogeneration Load in kw Load profile 2003 Load profile today :00 12:00 0:00 12:00 0:00 12:00 0:00 12:00 0:00 12:00 0:00 12:00 0:00 12:00 0:00

7 Aging infrastructure threatens supply security throughout the system 1

8 and new uses of electricity will increase demand and change usage patterns, e.g. electric cars 1

9 * 1 Energy flow 2010 Generation losses ~60% LOST Transmission & Distribution losses ~7% USED Keeping vast capacities of electric power on tap as reserves also reduces our total yield of used vs. lost energy. * 1 Quad = TWh

10 Most energy consumption takes place in buildings, so Smart Buildings are crucial to solving these challenges. 1 Consume ~40% of worldwide energy Produce ~20% of CO 2 Transport 28% 41% Buildings Industry 2) 22% 11% Industry 1) 13% Buildings power 1) 31% Industry Forestry 14% 18% Agriculture 14% 8% Transport Buildings 2) 1) Indirect emissions through power usage 2) Direct emissions from primary energy usage Page 10

11 2 Smart Building & Smart Grid: the situation today How do today s technologies contribute to a solution?

12 DRV July 2010 Smart Grid rollouts commonly begin with smart meters, which are the foundation for more advanced applications 2 Site level

13 Expected Value (Post-Tax Return to Capital) DRV July 2010 Unlocking utility value from smart grid investments requires understanding of interdependcies 2 S-Curve Build-Up Of Incremental Value Capture Demand Response Circuit / Asset Management Extended Utility Roles Capital Build-Up Incremental investments Communications bandwidth DER & controls infrastructure Utility business development Incremental utility-side capital Programmatic, customer-facing and physical device management systems Integration capabilities to related initiatives (wholesale markets, renewables, PHEV s) Incremental field capital and knowledgebased applications Sensors & device controllers Information management Power system optimization AMI Source: Booz & Company, Smart Grid Perspectives 2008 Incremental Capital Commitment Initial capital outlay Meter functionality Communications infrastructure Head-end and legacy systems modifications

14 Meters Installed The meters themselves don t add capability, but as they become more pervasive, the grid becomes more flexible DRV July ,000,000 Example rollout Phase 3 Price-based DR 800,000 Phase 2 Energy Feedback Event-based DR Pre- Payment DG Integration EVC Integration Phase 1 Operational Analytics 200,000 Basic Meter-to-Cash Adv. Meter-to-Cash Distribution Integration 100,000 20,000 Phase 3 Functionality 5,000 0 Phase 1 Functionality 0 mths 1 mth 6 mths 9 mths Phase 2 Functionality Time 15 mths 18 mths 24 mths 26 mths Roll out 5000 meters Test phase 1 functionality and communications Increase meter count to 20,000 with phase 1 functionality Undertake 5000 meter pilot of phase 2 functionality while continuing rollout on phase 1 functionality Cutover all meter population to phase 2 functionality and continue rollout up to 200,000 meters Undertake pilot of phase 3 functionality using different set of meters while continuing to rollout of up to 800,000 meters on phase 2 functionality Cutover all meter population to phase 3 and continue rollout up to 1,000,000 meters Functionality and rollout complete

15 2 Automated demand response is the first large-scale application based 1.2 on smart meters and building automation DRV July Many buildings curtail load in unison, acting as a virtual power plant 0

16 Smart Buildings react to changes in the Smart Grid, providing the functionality for those advanced grid applications. 2 Macro-Grid ( Smart Grid ) PV Distribution and generation resources controlled through energy automation system (SCADA) Central generation resources and step-up transformers Micro-Grid Resources controlled through energy automation system (Micro-Grid Controller, SCADA UI) Distributed generation resources Distributed storage resources. PV Nano-Grid ( Smart Building ) Smart Grid + + PV Consumption Storage Generation Distribution Resources controlled through Building Automation System Integrated generation and storage The building presents itself as a distributed resource + + Transmission

17 2 DRV July 2010 In Smart Buildings, user information and control strategies are the foundation for efficient operation and integration with the grid. Smart Building Smart grid infrastructure Control strategies Transparency infrastructure Consumption Demand to grid Base load Supply Demand Consumption to grid 0h 24h 0h Smart consumption infrastructure 24h Dashboards Onsite generation Analytics Storage Sub-meters OpenADR ZigBee BACnet BAS Energy management applications Efficiency built into building systems and integration into the Building Automation System

18 3 Smart Building & Smart Grid in the future Which scenarios will we see in the near future?

19 Energy market participants will have much more data to work with than today, increasing efficiency for all. 3 Pricing Analysis Grid Loss Identification Customer Profiling & Segmentation Load Modeling & Forecasting Demand Response Evaluation Distribution Planning

20 Access to wholesale markets (dynamic pricing) will allow those who are flexible to make the most of low energy prices... 3 Fast Charging Water tank PV PV E-Car CHP Electrical storage Thermal storage CHP Electrical storage Thermal storage $ $ Smart Grid Page 20

21 ...and to avoid the burden of high energy prices during peak hours. Example: CPP tariffs in California 3 Fast Charging Water tank PV PV CHP Electrical storage Thermal storage E-Car CHP Electrical storage Thermal storage $$ $$ Smart Grid Page 21

22 DRV July 2010 To participate in the Smart Grid, Smart Buildings will need to be able to duplicate many of its control functions on a local scale. 3 Smart Grid functional components A new role for building automation Solar PV Wind BAS 1 Gas Turbines Fuel cell Traditional, central generation and storage resources will remain under centralized control. Pump hydro Thermal Fly wheels BAS 1 Battery Controls & monitoring: SCADA, Energy management system, DRMS, cyber security Switch gear Inverters Sensors Transformers Relays But many of the new, distributed resources will be attached to building sites (e.g. rooftop solar) and will need to be integrated through the building s Building Automation System (BAS). Building owners are unlikely to give grid managers direct access to field-level resources. The BAS will perform an important role in managing generation, storage and consumption on behalf of the building operator. Lighting BAS Heat 1 Chillers/ boilers Pumps Electric vehicles Sub metering Utility or Micro-Grid Manager Control Building owner control Building owners will soon expect their building automation systems to be able to talk to the grid, or at least guarantee an upgrade path. Note: Diagram shows major components and is not exhaustive 1) Building Automation System

23 Summary: Smart Buildings in a Smart Grid answer some of the important challenges facing our energy supply DRV July Challenges in changing energy system Renewable and distributed generation Limited generation and grid capacity Aging and/or weak infrastructure Cost and emissions of energy supply Smart Grid offers solutions Balancing generation & demand, new business models Load management & peak avoidance Reliability through automatic outage prevention and restoration Revenue losses, e.g. non-technical losses Efficient generation, transmission, distribution & consumption Full transparency on distribution level and automated loss prevention