Customer Side of the Grid: Architecture Options

Harvey Michaels , Scientist/Lecturer DUSP Environmental Policy and MITEI 617-253-2084 [email protected]

9-326 Instructor:

Enabling an Energy Efficient Society

Energy Efficiency at MIT

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Expanding Coursework – Energy Minor Integrated Technology, Economic, Management, Behavior, Policy Research:

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2050 Resource Assessment

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Customer Side of Smart Grid: Architectural Options:

• • • •

Smart Grid or Smart Citizen?

Public or Private Networks?

How to maximize behavior impact How to maximize market innovation

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Internet Innovation:

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I2EE-based buildings Web 2.0 GIS/Community Systems

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Federal/State/Utility Program Design:

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Utility/Community/Campus Partnerships Zero Net Energy buildings

Information and pricing as an efficiency/DR option:

Providing consumers with energy diagnostics, feedback, control

The Demand Response Issue: The Load Duration Curve Continues to Erode

29,000 27,000 25,000 23,000 21,000 19,000 With the continued penetration of central air conditioning systems, the top 60 hours of the year now account for 10-15 percent of the system peak 17,000 15,000 13,000 11,000 9,000 1 501 1001 1501 2001 2501 3001 3501 4001 4501 5001

Hours per Year

5501 6001 6501 7001 7501 8001 8501

Smart Grid: One Network or Three?

SCADA: “System Control and Distribution Automation” of G,T& D

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to improve system efficiency and performance and provide resilience to failure.

AMI: “Advanced Meter Infrastructure”

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automates the meter read process, increases the frequency of reads to at least hourly, and possibly communicates two-way between utility and meter for demand response (DR) services.

LAN: “Local Area Networks” within buildings

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communications (powerline or wireless) between devices managing software process (in-home dedicated server, utility managed off-site, or Internet). consumer display device (kitchen, thermostat) or multi purpose display (TV, computer, phone).

The Customer Side of Smart Grid : 2 strategies/architectures

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1: Customer-Controlled Architectures Price-based demand response, using time-differentiated rates, which requires AMI.

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Vision: Customers view data, make choices, in time automatic response by customers thermostat and other devices.

2: Utility-Controlled Architectures

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Push-button Control-based demand response – Utility monitors and controls end use equipment.

The

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Vision: Generation, transmission, distribution, and end use equipment as part of a single system.

Interval meter reads not essential.

Utility Private Network Architecture

– utility provides meter-to-devices communication and control

MDM/Head-end Utility-network devices in home

Customer

Utility-side

Third parties or utility “Energy Desks” control registered loads

Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer X 0% 50% 100% 0% RISK 150% Utility 0% 50% 100% 150% 0% 50% 100% 150% 100% RISK 0% RISK

Politics of the “Smart Grid” – Does Society want Utility Control?

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End use equipment is visible and controllable by the utility or third party – “Utility control” is more dispatchable and therefore can replace spinning reserve

….but some find it kind of scary.

Resistance is Futile Prepare to be Assimilated

Customer-responsive Architecture =

Providing consumers with energy diagnostics, feedback, control refers to systems for optimizing consumers’ end-use needs (especially air conditioning, heat, hot water)

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based on weather, schedules, and time differentiated costs.

Time-differentiated rates are more fair, and some would argue inevitable.

Customer Responsive Systems work 24/7, providing efficiency as well as peak demand response.

AMI needed for Time-Dependent (dynamic) Pricing

1.2

1.0

Illustration of Residential CPP Rate Higher prices during Critical Peak Events ~ 50-150 hours/year

Existing All-In CPP on Critical Days CPP on Non-Critical Days 0.8

0.6

0.4

0.2

0.0

0

Discounted price during off peak hours ~ 7,700 hours/year

2 4 6

Higher TOU prices during peak hours ~ 1,000 hours/year

8 10 12 14

Hour of Day

16 18 20 22 24

Customers respond to CPP price signals…

14 12 10 8 6 4 2 0 Peak-Period Reduction on Critical Peak Days 13.1

11 11.9

CA SPP AmerenUE Anaheim Peak Time Rebate 12 PSE&G Price Ratio: 4.1:1 4:1 4.6:1 6:1

Smart Grid AMI/pricing helps, but consumers respond more with information and/or controls

50% Critical Peak Impacts By Rate Treatment Average Critical Peak Day – Year 1 Hottest Critical Peak Day * 47.4% 40% 34.5% 30% 20% 12.5% Critical Peak Variable With Automated Controls Critical Peak Variable With Automated Controls 10% 4.1% Critical Peak Fixed TOU 0% Time of Use CPP-F CPP-V CPP-V TOU

Source: Roger Levy, Statewide Pricing Pilot Summer 2003 Impact Analysis, Charles Rivers Associates, Table 1-3, 1-4, August 9, 2004.

Customer-Controlled, Public Network Architecture: Workspace Consumer-side

Utility’s

Web Workspace MDM CRM Utility-side

Vision - Applications for the Smart Consumer

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Utility, thermostat, appliance, Google, etc. make app.

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View on home PC, work PC, TV, cell phone (at least until next year).

Application ideas:

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Make my AC, water heater, pool pump, refrigerator use pattern smarter.

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Find out what anything costs to run.

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Choose the best rate for me.

Choose a theme – understand the consequences- do it

(ie. More Green)

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Sell a DR option.

Opportunity

Time for new leadership with capability, courage, and imagination to shift paradigms to develop greater energy efficiency! …through strategic thinking about technologies, policies, planning, building methods, systems, software, business models.

TIME IS SHORT NEED IS HIGH OPPORTUNITY IS GREAT