Rob Surtees Managing Director Enerweb (Pty) Ltd South Africa

Transcription

1 Rob Surtees Managing Director Enerweb (Pty) Ltd South Africa

2 DEMAND RESPONSE Smart Grid s Silver Bullet

3 What is Demand Response (DR)? A Airbus only seats 253 people 263 people show up for a flight Airline pays (with ticket vouchers) 10 people to take a later flight Source: Eskom, 2012

4 Demand Response on the Power Grid Power grid only has 70 MW Consumers want to use 80 MW Power grid pays consumers to reduce 10 MW to balance supply and demand Source: Eskom, 2012

5 Demand Response Demand Response is a measurable change in electrical demand by customers in response to a curtailment notice. Customers participate in a curtailment programme that provides an incentive to reduce load during critical periods Negawatts. Typical curtailment activities: Shutting off production equipment. Turning down A/C units. Shutting off lights.

6 Demand Response Objectives The objective of Demand Response is to reduce or shift demand peaks during critical periods caused by any of the following: Generator malfunctions. Transmission line issues. Severe weather. System constraints due to maintenance A curtailment event is called when: The overall grid load is too high. System reliability is in jeopardy.

7 Demand Side vs. Supply Side DEMAND SIDE SUPPLY SIDE MW MW Unit 2 Unit 1 Demand Load Generation MW MW MW Unit 1 Demand Load Generation Negawatt Generator

8 Typical Demand Response Event Start of Demand Response Event End of Demand Response Event

9 Expectations around Demand Response Much expectation has been created around Demand Response in South Africa and internationally. Demand Response has even been referred to as being Smart Grid s killer application. * Demand Response leverages technology infrastructure to deliver measurable value to utilities, grid operators and customers. A Demand Response programme has the same effect as turning on more generation, but is less costly and environmentally friendly. * Pike Research

10 Advantages of Demand Response Over Other Supply-Side Based Options Lead time to implementation. Low capital investment. Low running cost. Low environmental impact. Reduce or eliminate the need for forced national load shedding programmes.

11 Automated Demand Response Pilots and Projects Canada Ireland France South Korea Various US utilities, e.g. Southern California Edison, Seattle City Light, SDGE, PG&E, etc. Spain Turkey India China South Africa Australia Source: Demand Response Research Centre, 2011

12 Demand Response Industry Growth USA Enormous Demand Response industry growth. Expectations to become a multi-billion dollar industry within the next 5 years, with growth rates of almost 40% p.a. projected. Europe Demand Response alone could achieve between 25-50% of the European Union's 2020 targets for energy savings and CO2 emission cuts avoiding investments of 50 billion for peak-generation capacity. * * Source: CapGemini, VaasaETT and EnerData, 2011

13 Demand Response Market Developments Internationally USA As of 2010: MW of Demand Response capacity available, representing 7.6% of the country s total peak load. Greatest number and variety of Demand Response programmes are found in California and New York. * EnerNOC is doing an Automated Demand Response Pilot Project to link Demand Response to manage wind power in the Bonneville Power Administration area. * Source: National DR Directory, 2011

14 Demand Response Market Developments Internationally UK As of 2009: MW Demand Response capacity available, known as Short Term Operating Reserve (STOR). The demand side provides 839 MW (35%), of which approximately 750 MW is back-up generation with the remaining being customer-side load reduction. * * Source: GreenTech Media Research, 2011

15 Demand Response Market Developments Internationally China Feb 2012: Honeywell and Tianjin Economic-Technological Development Area (TEDA) launched China s first Demand Response Pilot Project under a US-China Smart Grid cooperative. The project will help reduce energy use in commercial, industrial and government facilities, cut energy costs and emissions and improve electrical grid stability. * * Source: Honeywell, 2012

16 South Africa s Current Demand Response Programmes Eskom Demand Market Participation (DMP) Programme Eskom DRAPP Pilot Programme Eskom Demand Response Standby Generation Programme Enerweb/Eskom Virtual Power Station (VPS) and DMP Enerweb/Eskom Virtual Power Station (VPS) and Standby Generation 854 MW DR regularly dispatched by Eskom via the VPS MW planned over the next 3 years

17 Limitations In Wide-Scale Implementation of DR in SA UTILITIES/LOCAL SUPPLY AUTHORITIES

18 Limitations In Wide-Scale Implementation of DR in SA CUSTOMERS

19 Potential of Demand Response in South Africa An estimated potential of to MW DR available in SA in the next 5 years Currently focusing on small industrial, commercial and agricultural customers Additional non-essential load of existing large industrial customers under DMP Programme Standby Generation customers are starting to be targeted 100 MW target initially Potential DR: Any load that can be switched off, without adversely affecting production, safety or the environment

20 Managing Demand Response. What is a Virtual Power Station? Generator #2 Generator #1 Generator #3 System Operator Virtual Power Station Customer #1 Customer #2 Customer #3 Customer #4

21 Enerweb/Eskom Virtual Power Station (VPS) Key statistics since July 2008: DR Customers are grouped into regional areas. Managed more than customer dispatches. Dispatched a total of MW s on request from the System Operator. Been used on average every second day to assist with system frequency or demand constraints. Manages customer availability, scheduling, dispatching and gathering of metering information, event performance measurement, settlements and reporting.