Customer Side of the Grid: Architecture Options

Harvey Michaels, Scientist/Lecturer

DUSP Environmental Policy and MITEI

617-253-2084 hgm@mit.edu 9-326

Instructor: Enabling an Energy Efficient Society

Energy Efficiency at MIT

Expanding Coursework – Energy Minor Integrated Technology, Economic, Management,

Behavior, Policy Research:– 2050 Resource Assessment

– 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

– Internet Innovation:• I2EE-based buildings• Web 2.0 GIS/Community Systems

– Federal/State/Utility Program Design:• 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

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1 501 1001 1501 2001 2501 3001 3501 4001 4501 5001 5501 6001 6501 7001 7501 8001 8501

Hours per Year

MW

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

Smart Grid: One Network or Three?

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

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

AMI: “Advanced Meter Infrastructure”

– 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

– 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

1: Customer-Controlled Architectures

Price-based demand response, using time-differentiated rates, which requires AMI.

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

2: Utility-Controlled Architectures

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

– 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-side

CustomerUtility-network devices in home

Third parties or utility “Energy Desks” control registered loads

0% 50% 100% 150%

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Customer 1

Customer 2

Customer 3

Customer 4

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0% RISK 100% RISK 0% RISK

Customer 8

Customer 9

Customer 10

Customer 11

Customer 12

Customer 13

Customer 14

Customer 5

Customer 6

Customer 7

Customer 15

Customer X

Utility

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

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)

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

Illustration of Residential CPP Rate

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Hour of Day

Rat

e (

$/k

Wh

)

Existing All-In

CPP on Critical Days

CPP on Non-Critical Days

Higher prices during Critical Peak Events~ 50-150 hours/year

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

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

Customers respond to CPP price signals…

Peak-Period Reduction on Critical Peak Days

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CA SPP AmerenUE Anaheim PeakTime Rebate

PSE&G

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rce

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cti

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In

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ak

-Pe

rio

d E

ne

rgy

Us

e

Price Ratio: 4.1:1 4:1 4.6:1 6:1

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

Time of Use TOU

Critical Peak Impacts By Rate Treatment

0%

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ak

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ad

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Critical Peak Fixed

CPP-F

TOU

4.1%

Critical Peak

Variable With

Automated Controls

CPP-V

34.5%

12.5%

Critical Peak

Variable With

Automated Controls

CPP-V

47.4%

Average Critical Peak Day – Year 1Hottest Critical

Peak Day *

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

Customer-Controlled, Public Network Architecture:

Utility’s Web Workspace

MDM CRM

Device Workspace

Utility-side

Consumer-side

Vision - Applications for the Smart Consumer

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

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

Application ideas:

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

Find out what anything costs to run.

Choose the best rate for me.

Choose a theme – understand the consequences- do it (ie. More Green)

Sell a DR option.

TIME IS SHORT

NEED IS HIGH

OPPORTUNITY IS GREAT

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.