Energy Management Systems: Industry Perspectives on Challenges and Opportunities Sasank Goli Imagination at work IRED 2014 Kyoto, Japan 20 November 2014 1
Outline: I. Introduction II. Technology-Standards-Policy III. Conclusions 2
Technology End-user energy management systems Purpose to allow consumers to better manage energy consumption (DSM) thereby leading to sustained cost savings with better: Analytics - Information brings improved understanding of how energy is used and how it impacts the organization s costs. Decision making tools Control over devices - Improved utilization of assets Planning considerations: Technology Standards Policy End-user Energy Management Systems 3
C-I-R Sector Relative Proportions Industry (%) Comm. (%) Res. (%) Other (%) Total TWh USA 24 35 36 5 3886 China 68 6 15 11 4693 Singapore 34 38 17 11 41 Japan 33 36 29 2 860 India 46 8 21 25 1051 Thailand 42 36 21 1 132 Philippines 35 29 34 2 54 Malaysia 44 34 21 1 94 Indonesia 37 24 39 0 129 4
End User Load Considerations Classification of available loads for end user management High Emergency lighting, product cooling Business dependent Rare Business Impact to Load Reduction Time-sensitive process equipment Time insensitive process equipment HVAC, Lighting, defrost circuits, some food prep equipment HVAC, Lighting, defrost circuits, cold storage Rare HVAC, Lighting, Appliances Forklift battery chargers, normal office temp. controls HVAC, Lighting, defrost circuits, cold storage HVAC, Lighting, Appliances Low Participation depends on regulation Rare due to relative costs Solar, Storage Industrial Load Examples Commercial Load Examples Residential Load Examples 5
Market Potential Overview for EM Market drivers include: Energy cost saving potential Improved device functionality More service providers Desire to be green Incentives and mandates. Market inhibitors include: Insufficient consumer motivation Capital costs Complexity of use Confusing choice of products Lack of standards Low utility support Sector overall is expected to grow significantly in coming decade 6
Home and Buildings Energy Solutions DRMS Automation Server Smart Meter IHD Internet Home Energy Manager Non-Meter Solution server Other Devices server Other Devices PCT 7
Smart Grid Extending into Industrial Facility Industrial Facility Boundary Energy Services Interface ESI Energy Management and Control System Loads Storage Generation Secure External Communications Intra-Facility Communications Electrical Flows 8
NIST Smart Grid Conceptual Model Customer Technical Standards Operational 9
Δ in Energy Use/Expense Compared to Baseline Structured Why Approach Energy Management Matters Ad hoc approach to Energy Management Costs +5% 0-5% -10% -15% Cost high = audit Waste cutting; Some investment Under control Cost high again: Where s that last audit The cycle repeats -20% Investment -25% 0 Years 3 Source: UNIDO 2010
Δ in Energy Use/Expense Compared to Baseline Structured Why Energy Approach Management Matters Benefits of a Structured Approach Costs +5% 0 Senior management commit to program Initial savings sustained Business As Usual: Programs funded only when energy use/costs increase. -5% -10% -15% Housekeeping first then investment Becomes company culture -20% Investment -25% 0 Years 3 Source: UNIDO 2010 11
Energy Management Planning Benefits for Organizations Organizations that establish an energy management plan gain a number of benefits: Actively manage energy use and reduce costs Reduce emissions without negative effect on operations Document savings for internal and external use (e.g. emission credits, GHG reporting), consistent with their business needs Continue to improve energy performance over time 12
ISO 50001 Key Concepts Shifts the energy efficiency focus from individual projects to a systematic, data-driven management approach Requires top management to be engaged on an ongoing basis. Provides a context for informed decisions concerning proposed energy efficiency projects, including new technologies. Increases reliability of outcomes through emphasis on business processes rather than reliance on a few individuals Involves energy users and decision makers, not just facility personnel and physical systems, to sustain the change. Scope of energy management facilities equipment personnel systems processes 13
Policies that promote energy management A non-exhaustive list includes: Energy Efficiency Standards For consumer products e.g. EnergyStar, MEPS Building codes e.g. California Title 24 Smart meter installation targets Renewable Portfolio Standards (RPS) DR incentives Outreach and Education Facility and Building Energy Management Systems Business processes. E.g. ISO 50001 Energy Management Std Technology. E.g. Dashboards; Big Data Analytics 14
MV cubicle Utility meter Example Utility and Developer Utility managed Generation, Transmission and Distribution Real Estate Developer managed (sub) Distribution and Retail billing Distributed Storage 4.4 kv Advanced Metering Infrastructure and Microgrid Controller Rooftop Solar Plug-in Electric Vehicles 15
Key Takeaway from research and pilots GE App 16
Thank You! sasank.goli@ge.com 17
Key insights from implementations Focus, focus, focus on interoperability Realize that compliance to standards does not in itself guarantee interoperability Share information among stakeholders to ensure success Build a collaborative team with technical and project management expertise 18
Possible further steps for Japan Japan has achieved high growth in DSM in a short period helped by: o Subsidies, grants, roadmaps o Electricity market reform DSM market is becoming self sustainable Further steps that can be taken: o Decoupling Utility s profits should not depend on the electricity sold Regulatory framework that encourages investment in EE o Market mechanism for trading demand DSM is Japan is currently limited to bilateral contracts PJM interconnect in US meets 6-10% of peak demand through DR Long term energy mix 19 Will determine the extent or DSM and/or storage required
Available kw Load Participation Opportunities Availability of loads to participate in end user demand management On-Site Generation Ancillary Load Flexible Load Cr t ca Load Critical Load Base Load Not Available Low Total Reduction Hours High 20
Demand-Side Resources Automated management of energy use: Automated demand response Voluntary load control Dynamic pricing On-site generation and storage Smart charging for electric vehicles Industrial plants Advanced Metering Infrastructure (AMI) 21
Energy Efficiency vs Demand Response Auto-DR only Electricity Value Chain Portfolio of actions that industrial facilities can undertake in terms of Type Duration Rapidity of response 22
Policy and standards are closely linked Competing standards can inhibit markets By default Disparate standards bodies give rise to competing standards Firms face higher transaction costs, diseconomies of scale By design Technical standards as industrial policy non-tariff trade barriers Prescriptive standards development undermines market-based approach Leading to calls for harmonization Country-to-country MOUs Joint R&D Standards working groups Foreign participation in national/regional standards bodies Government support for development of international standards Internationally-recognized conformance testing procedures Funding for standards development in emerging markets Other 23