Demand Response / Distributed Energy Resources · The Pivot to Distributed Energy Resources •Two-way grid edge DERs are rapidly gaining prominence - Renewable sources - Distributed

Demand Response / Distributed Energy Resources

The Changing Landscape of Grid Responsive Automation

Jamie Coffel

June 20th, 2018

Honeywell Confidential - © 2018 by Honeywell International Inc. All rights reserved.

A Brief History of the Grid

• Thomas Edison’s opens the Pearl Street Station in lower Manhattan in 1882

• The grid evolved into a three-tiered architecture.

- Large power plants that generate electricity

- Transmission systems to carry power to local distribution utilities

- Electric cooperatives, municipalities and investor owned utilities who distribute energy to

the consumer

• Some local utilities had and still operate their own generation facilities

- Fossil fuel or hydro-electric plants

• The system was generally stable and manageable

- Power goes in one end and is consumed at the other.

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Company Internal


A Brief History of the Grid

• Today we have both grid-tied and behind the meter generation

- PV (solar)

- Wind

- Battery energy storage

• Equates to varying sizes of generation assets not always managed by the utility

• System operators have new challenges

- Stabilize capacity, frequency, voltage, power factor, etc.

- Driven by solar irradiance, wind speed, etc.

• Once a stable grid, now highly variable

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Company Internal


Introducing Demand Response

• Originally used to control:

- Irrigation pivots

- Water heaters

- Air conditioning

- Thermal storage

• Then applied to generators

- Both sides of the meter

• Evolved to include residential and small commercial thermostats

- Paging

- ZigBee?

- Wi-Fi

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Company Internal


Traditional Demand Response

• Load Management Systems (LMS)

- Automated versions over 40 years old

- One-way messages (power line communications, paging, etc…)

- Simple on/off devices

- Hardware defined load groups:

Program and group constraint management and enforcement

• DRAS

- Two-way communication

- Demand Response Automation Server / System

- Commercial/ Industrial OpenADR based event manager

- Energy / capacity bidding

- TOU management

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Company Internal



• Demand Response Management Systems (DRMS)

- All LMS capabilities

- Response to frequency or voltage events

- Response to angle of approach to set threshold

- Binary or analog triggers or alarms from calculated totals or external systems

- Rotating load groups, least controlled, last controlled, etc.

- Gears – increase or decrease control based on system response or external triggers

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Company Internal



• DR economics have become more challenging

- Peaking plants less expensive than traditional mass market DR programs

- Until oil markets are flat, traditional DR will be cyclical

• DR over AMI less volatile

- Sunken costs for AMI communications

- Less complex and expensive equipment

- Improved life cycle cost

• DER is the natural progression of DR

- Evolution, not revolution

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Company Internal


The Pivot to Distributed Energy Resources

• Two-way grid edge DERs are rapidly gaining prominence

- Renewable sources

- Distributed generation (gen-set, CHP, etc…)

- Energy storage

- Two-way communicating, manageable loads

• DERs create issues

- Voltage/frequency forced outside of operating tolerances

- Competing control objectives between voltage / power factor

- Faster fluctuations in supply curves than centralized generation

- Excessive operations of distribution automation apparatus

- Masked / hidden load = system design issues

- Unplanned reverse power flows

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Company Internal


The Curious Case of DERMS

• Distributed Energy Resource Management Systems

- Acronyms have advanced faster than the technology

- Vendors eager to differentiate have created confusion

- Amorphous definitions

- Surprisingly small technology gains over the last three decades

• Contenders in the DERMS race

- Wi-Fi thermostat aggregators

- Battery storage providers

- Load control switch systems

- Electric vehicle charging providers

- “Control only” systems

- Combination of some of the above

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Company Internal


It's Not That Simple

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Utility Automation Spaghetti Diagram*

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*Extracted

from NISTIR

7628 showing

the logical

interactions

between utility

automation

components

(OT)

Company Internal


Some DER Standards

• Advanced - IEC 61850-7-420 and IEC 61850-90-7

- Object models may be mapped to different protocols

- DNP3 (IEEE 1815) with the generic mapping to IEC 61850 in IEEE 1815.1, and a specific mapping

to IEC 61850-7-420 and 90-7 developed by EPRI

- SEP 2.0 mapping by EPRI

- Web services mapping OPC, REST, Web Sockets, etc.

- Modbus

• Basic – Straight DNP3 or Modbus

• Common Information Model (CIM) IEC 61968 for app-to-app messaging:

- GIS to DMS, DMS to DERMS, OMS to DERMS, DR to DMS, DR to DERMS

• MultiSpeak for similar application-to-application messaging

• IEC 61970 for exchanges of power-flow models, including DER systems

• ICCP for energy, markets

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Company Internal


Managing the Unmanageable

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• DER integration

- Energy storage, renewables, IVVC, CVR, FFR, etc.

• Energy market integration

- Rules based autonomy in response to market conditions

• MDM and billing integration (settlement)

• Rules based capabilities and limitations (tariff enforcement)

- Predetermined scenarios for autonomous grid management

• Event and scenario modeling

• IT/OT integration connecting operations with back office

- “Real-time” data feeds for end-user or other utility applications

• Data analytics and BI tools

• Forecasting and system modeling

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Company Internal



• Asset control / monitoring

- Individual or batch management

- Two way Power Flow Control (Ancillary Services)

- Operate DER such that grid operating constraints are enforced

- Operate DER to achieve specific power factor and quality levels

• Locational Marginal Pricing

- Compute DER cost and value

• Virtual Power Plants

- Build stable DER mixes to better mimic flat generation sources

• Microgrid Support

- Campus and other large sub systems

- Intentional islanding during SCRAM events

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Company Internal


What is a DERMS? Source: 2017 GTM Research - DERMS: A Term Gone Too Far?

Taking cues from the industry buzz around DER integration, technology companies across

the grid edge vendor landscape are seeking to claim their position in the emerging DERMS

category.

However, valid claims to the category are a stretch for most companies, even for those that

have already secured a place at the DER integration table. The key distinction is that, in a

world where core utility software is continually augmented by advanced applications and data

integrations, most technology companies have yet to fully develop the capabilities that

constitute a true DERMS product, rather than merely providing upgrades to legacy utility

software.

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Company Internal


The DERMS Life Cycle

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Company Internal


Where Do We Start?

• Some basic observations:

- No such thing as a full DERMS solution

- Many vendors involved

- Many generations of solutions involved

- It’s all about integration

Various complexities

Various methods

• Surgical approach required

- “Outcome-Defined Applications”

(Next session)

• Value in legacy systems

- (You don’t have a choice anyway)

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Company Internal


Where Do We Start? (continued…)

• Almost all utility systems are

impacted or contribute to the

enterprise DER environment

• Some DERMS deployment

approaches will require major

overhauls or replacement of existing

systems

- Distribution simulation, billing,

forecasting, system modelling, etc.

- Better to use the inherent intelligence in

existing systems and augment where

needed

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Company Internal


When Do We Start?

• Choose the right partner

- Data governance will be challenging

- New DERs emerging often

- Deploying a full enterprise DERMS platform is a

journey, not a destination

- Choose the right partner for the long run

Breadth of experience

Large knowledge base

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UTILITY

WORK

AHEAD


Questions / Discussion

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Documents

Demand Response / Distributed Energy Resources · The Pivot to Distributed Energy Resources •Two-way grid edge DERs are rapidly gaining prominence - Renewable sources - Distributed