Smart Grid & Demand Management World Future Energy Forum January 19, Scott Henneberry Schneider Strategy & Innovation VP, Smart Grid Strategy

Transcription

1 Smart Grid & Demand Management World Future Energy Forum January 19, 2011 Scott Henneberry Schneider Strategy & Innovation VP, Smart Grid Strategy

2 Agenda Demand Response Overview Smart Grid Integration

3 Bombardier CRJ-700 Only Seats 70 People 80 People Show Up for the Flight Airline Pays (e.g. ticket vouchers) 10 people to take a later flight

4 Power Grid only has 70 MW Power Grid needs 80 MW Power Grid pays consumers to reduce 10 MW to balance supply & demand

5 What is demand response? US DOE Demand Response Definition: Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized. Encompasses traditional programs and ISO programs US Federal Position: It is the policy of the United States that time-based pricing and other forms of demand response.shall be encouraged, the deployment of such technology and devices.shall be facilitated, and unnecessary barriers to demand response participation in energy, capacity and ancillary service markets shall be eliminated. US Energy Policy Act of 2005, Sec. 1252(f) 5

6 Schneider Smart Grid Focus Area Distributed Generation 2 Centralised Generation 5 Renewable On-site Storage Backup Power Market Operator (ISO) Residential Commercial Industrial Transportation Transmission Distribution Consumers Renewable Energy Generation 1 Demand Mgmt Solutions Electric Distribution Companies 4 Targets Intelligent Metering & Demand Response C&I Customer Clusters 6

7 Shifting Market Dynamics Require New Solutions 1.) Energy consumption is expected to increase as much as 50% by the year (Energy Information Administration) 2.) Generation and transmission projects will not be built fast enough to meet demand (EPRI) 3.) AMI installations will lead to real time pricing for customers as a way to pass through higher costs (FERC) 4.) Renewable generation mandates will add 20-40% to the cost of generation (AWEA) Pre 1990s - Local utility interruptible rates for large industrials - DSM programs begin 1990s - Wholesale power markets deregulate, trading starts - Independent power generators outpace utility built units - First interval data meters 2000s - Retail deregulation spreads - Utilities separate business units into Distribution, Generation and Transmission - ISOs take on roll of market pricing and clearing for generation - Renewable generation market starts in earnest Utilities outsource simple demand reduction needs to aggregators - DOE stimulus pushes AMI installations -28 states adopt renewable generation mandates for utilities -ISO and early adopter utilities push customers to complex demand programs (day ahead, real time) -CA mandates real time pricing for all C&I customers -Federal carbon program limiting emissions pending -Many new market participants enter the smart grid arena 7

8 Virtual Power Plant = Demand Response + Energy Efficiency + Smart Grid Traditional Supply Resources CT Combined Cycle Coal, Nuclear C&I Auto Curtailment Programmable Thermostats A/C Tune-ups The Virtual Power Plant Efficient Lighting C&I Custom Rebates Refrigerator Recycling Energy Efficient Transformers Source: PLMA/KCP&L 10/28/08 8

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10 ISO DR Experience

11 Major US Markets Source: Federal Energy Regulatory Commission website updated September 26,

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13 Smart Grid Demand Response Evolution Dynamic Pricing Value to Utility & End Customers Low High Day Ahead Day ahead signal from utility allows building to shift loads to non-peak hours Building infrastructure allows it to react in 5 mins to utility signals Through trading partners, allows arbitrage of real time pricing markets Capacity Only Predominant form of DR in place today Building agrees to shed load at peak times in exchange for payment Called only on peak usage days (<10 X p.a.) Low Investment Required for Implementation High 13

14 PJM Demand Side Response Payments *Capacity revenue prior RPM implementation on 6/1/07 estimated based on average daily ALM capacity credits and weighted average daily PJM capacity market clearing price. 14

15 Installed Wind Capacity in ERCOT 10,000 Cumulative Planned (Signed Interconnection Agreement) Cumulative MW Installed 9,000 8,066 8,661 9,021 Wind Capacity Installed by Year (MW) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,173 1,385 1,854 2,875 4,785 6,023 2,043 6,023 2,638 6,023 2, Year (as of September 30,2008) 15

16 High wind ramp rates (April 13, 2008) Wind generation increased from around 750 MW at 3:40 to 2250 MW at 4:10 Ramp rate of 50 MW/Min for 30 minutes 16

17 Wind Event: Feb. 26, 2008 (3pm to 9 pm) Wind output was significantly below updated (hour-ahead) wind resource plans 17

18 ERCOT Wind Event: 2/26/08 (3 to 9 p.m.) Load increased by 400 MW between 5:30 and 6:30 pm (evening peak) Source: PLMA/ERCOT 10/28/08 18

19 ERCOT Wind Event: 2/26/08 (3 to 9 p.m.) It appears to be the deployment of LaaRs which halted frequency decline and restored ERCOT to stable operation. -- ERCOT EECP Event Report Source: PLMA/ERCOT 10/28/08 19

20 Schneider DR Experience

21 Example: Integrated solutions in a building Simple software integration Interoperability and openness to third party systems Renewable energies HVAC control Lighting control Energy monitoring & control Motor control Access control Security Green: Make the connection of renewable energy sources easy, reliable and cost-effective Efficient & productive: Measure and control energy, automate, provide relevant diagnosis Manage processes Make all the utilities of any Infrastructure more efficient Critical Power & cooling Reliable: Prevent from power outage & quality variance Electrical distribution Safe: Transform and distribute power safely 21

22 Rockefeller Group Project Building Facts: Location: Mid Manhattan Peak Load: MW Size: 49 stories plus 4 sub floors Project Goals: Double existing demand response capacity Automate building response to DR events Use DR techniques to prepare for RTP contracts Lower carbon emissions LEEDS Gold + Certification Integrate multiple systems to single control platform 22

23 Thank You! 23