Smart Demand Response ScenariosMarcus Meisel∗, Thomas Leber∗, Michael Ornetzeder†, Marek Stachura‡, Andreas Schiffleitner‡,

Georg Kienesberger∗, Joseph Wenninger∗, and Friederich Kupzog∗

∗Energy&IT Group, ICT - Institute for Computer Technology, Vienna University of TechnologyGußhausstaße 27-29, 1040 Wien, Austria, Tel: +43-1-58801-38401, Fax: +43-1-58801-38499

Email: {meisel, leber, kienesberger, wenninger, kupzog}@ict.tuwien.ac.at, Web: energyit.ict.tuwien.ac.at

†ITA - Institute of Technology Assessment, Austrian Academy of SciencesStrohgasse 45, 5, 1030 Wien, Austria, Tel: +43-1-51581-6582, Fax: +43-1-7109883

Email: michael.ornetzeder@oeaw.ac.at, Web: www.oeaw.ac.at/ita

‡KERP - Center of Excellence Electronics & EnvironmentIgnatz-Kock-Straße 10/Top 2.03, 1210 Wien, Austria, Tel: +43-1-272 0370-10, Fax: +43-1-272 0370-11

Email: {marek.stachura, andreas.schiffleitner}@kerp.at, Web: www.kerp.at

Abstract—Automated demand response has the potential tobe an essential future tool for maintaining the balance ofsupply and demand in electrical energy systems with a veryhigh density of generation from renewable sources. Althoughthis scenario can become true in the near future, only veryfew actual implementations of automated demand response canbe found in Europe. This paper is tackling this by analyzingcurrent demand response implementations, placing them intoa matrix of different aspects and strategies, with the goal toprovide a systematical basis of current application scenarios ofdemand response, highlighting barriers and starting points forfurther development decisions. Recommendations for importantand possible near future application scenarios of demand sideenergy management concepts in Austria are the result of thisanalysis by a multidisciplinary team of researchers.This paper describes related and important future work forAustria in demand response in context of a defined scenariokit. Aspects and strategies of each scenario are described in thefollowing subsections.

I. INTRODUCTION AND METHOD

Only very few implementations of automated demandresponse (ADR) can be found today to enable anunproblematic integration of the rapidly increasing renewableenergies (REs). As is well-know that renewable energieschallenging the grid with their fluctuating energy production,demand response (DR) or demand side management (DSM)have the potential to solve the problem locally. In this paper,first results of the project Smart Response are described. Ascenario kit was created to help classify in which areas ofDR or DSM, work is ongoing or already being done, toconsequentially provide a decision basis to systematicallyidentify areas that still have a lot of untapped potential for DR.

To accomplish a systematical view on the whole domain ofDR, it was split up into six aspects by the authors:

1) benefits for energy generation and distribution2) demand and device level

Demand Response Domain

split into aspects

Baseline

Related Work Research

identify strategies

refine matrix of aspects and

strategies into a strategy kit

Experiment

362 possible paths as morphological box

Classified works show unused scenario paths

assess 4 equally valued

criteria

possible new scenarios

Brainstorm, Discussion, Workgroup, Feedbackloop

low

high

compare to baseline, possible contribution, sustainability, market potential, innovation

low potential scenario

scenarios with most potential

Fig. 1. Process flow of method used

3) technical implementation4) level of automation5) incentive for customer6) tariff arrangement

Results from literature research, case studies, andprevious as well as ongoing projects in the demand andresponse domain, lead the authors to identify basic, self-contained blocks of measures taken by different demandresponse implementations. The authors call these blocksstrategies. These strategies were refined using brainstormingtechniques, internal workshops, and feedback from conferencepresentations[1].

These strategy blocks could be unambiguously mapped tothe six defined aspects. As a means of presentation for the

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aspects and its belonging strategies, the project team used amorphological box matrix, called the smart response scenariokit, in short, scenario kit.

Through the use of the matrix as a morphological box,this scenario kit now offers a third dimension when a pathis followed through all six aspects incorporating one ormore strategies from every aspect. The project team calls thesummed up result of this path a demand response scenario- short, scenario. Since the arrangement of the strategies isirrelevant, the path of a scenario is simply depicted as acolored blocks of strategies, as one can see in table I.

TABLE IMORPHOLOGICAL BOX OF SCENARIO KIT WITH SIX ASPECTS AND

STRATEGIES COLORED EXEMPLARY FOR VEHICLE TO GRID SCENARIO

# Strategies

1) gridstability

balancegroup

stability

base loadincrease grid relief load profile smoothing

2) householddevices HVAC electric

vehicleindustrialfacilities

buildingautoma-

tion

publicfacilities

energygeneration

devices

3)

externalinforma-

tion,humanreaction

devicewarning,humanreaction

aggrega-tion asvirtualpowerplant

devicereacts on

gridsignals

automatically switching devicesprogrammed by consumer

4) manual human inthe loop

semiauto-matic fully automatic

5) costreduction

environ-mental

protection

energyefficiency

productbundling prestige enhancement

6) fixed variable timevariable

loaddependent

exchangedependent discount business

tariff

By design, every related work or state of the art demandresponse project found, could be mapped as a scenario pathin the scenario kit, but furthermore, the morphological boxallows for 362 paths total, a far higher number of still possiblescenarios. Not every existing path through the scenario kitwill lead to a viable scenario, therefore proper evaluation ofa found scenario is critical.

To identify new scenarios, existing ones need to be classifiedwith the scenario kit. In research for current state of the artrelated work the project team discussed each ones potential.Eight different existing scenarios from four very differentADR domains were chosen, compared, and inserted into thescenario kit. Within the morphological box, the scenarioscould be easily classified and described. These scenarios were:

1) Electrical vehicles scenarios• Grid to vehicle (G2V) approach [2], [3]• Vehicle to grid (V2G) approach [4], [5]

2) Building to grid (B2G) scenarios [6]• MySmartGrid [7]

• Demand Response Automation Server (DRAS) [8],[9]

3) Smart meter scenarios• Time variable energy tariffs [10]• Consumer feedback loop [11]

4) Consumer to grid (C2G) automation [11]• Distributed frequency control by loads [10], [12]• GridFriendly appliance controller [13]

On the basis of this, new and missing scenarios could besystematically identified and closed with new scenario paths.Through discussion-description-feedback loops within theinterdisciplinary project team, seven plausible and promisingnew ADR scenarios for Austria, covering unused scenariocombinations, were chosen.

II. RESULTS AND DISCUSSION

To understand the implications of each scenario, a briefdescription and a first assessment of each scenario follows. Theassessment of each scenario (existing ones not described here)is based on rich domain specific experiences of the projectteam and done in four equally valued criteria:

• Load management potential: Possible technical contribu-tion to ADR in terms of energy savings and/or renewablepower generation (high means: avoid load peaks or black-outs).

• Sustainability: Preliminary assessed positive and negativeeffects regarding environmental, economic, and socialsustainability criteria.

• Market potential in 10 years: Is it possible to realize thisscenario either economically or technically successful inAustria within the next ten years.

• Degree of innovation: Newness of a scenario within theinternational DSM community.

A. Microgrid for buildings with photo voltaic generationThe solar energy generation of any building, from single

households to large office buildings, fluctuates continuouslyand fast. A sum of massive, unpredictable generation caninfluence the grid and destabilize its operation. To avoidoverloads and to smooth the generation profile it is necessaryto comply with strict requirements. On the other side,communication between loads in a household and the solargeneration control system could avoid those requirementsand their costs. Combining these two approaches, a buildingwith solar power generation and communication betweenloads, can be considered as a micro grid. The main idea is,to control consumption of loads like ventilation, dishwashers,fridges, heat pumps, lighting, and washing machines from acentralized controller. Loads will be used at full power whengeneration is high or peaks, and turned down or off whengeneration is low. With this technique it will be possibleto avoid many generation peaks of the photo voltaic (PV)system without introducing an additional storage unit andtherefore smoothing the generation profile.

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1) Load management potential: Low to medium. There is asmall potential in general, but in combination with renewablepower generation (eg. charging hospitals emergency batterieswith PV) can be medium. Another possibility are thermicstorages in houses built not before 15 years. In general,stability of the grid is elevated. Less feeding into the gridleads to means less fluctuation.

2) Sustainability: Medium to high. The scenario has ahigh environmental potential helping to integrate solar energyinto the grid and helping to reduce losses through reductionof energy consumption from the grid. A higher share inrenewables is possible.

3) Market potential in 10 years: Medium to high. Due tofalling cost for PV, high dissemination rates are likely.

4) Innovation: Medium. Low for the simplest implementa-tion with PV panels on the roof, but high for office buildingsdesigned with their facade covered with PV and their genera-tion greater than their consumption.

B. Microgrid for municipalities

Rural municipalities are more widespread than andnot as concentrated as cities, therefore the electrical gridwas not as enforced as near future needs of decentralizedgeneration require. Enabling massive amounts of decentralizedgeneration can only be achieved through either reinforcing thegrid infrastructure or coordinating generation and consumptionof a municipality as a micro grid through communication ofgrid components. A key ingredient of such a micro grid iselectricity storage. In a typical European rural municipality,there exist already quite many places electricity can bestored, yet they have not been enabled to do so. For examplewater towers are pumped full when they reach a pre-adjustedminimum level. Introducing communication dependent onstorage needs of the electrical grid, this electrical pumpingprocess can be done earlier to store energy or being postponedto not consume energy yet, hence drain energy. This is oneexample of hidden electrical storage opportunities in amunicipality. Others are waste water pumps, public buildingheating, ventilation, and lighting, township wide heatingwater generation.

To enable more decentralized generation without reinforcingthe rural grid infrastructure, the generated electricity has to beconsumed as close to the location of generation and as timelyas possible. The former mentioned enabling communicationtechnology combined with the latter described energy storageshelp tackling both of these two aspects.

1) Load management potential: Medium to high. Higherpotential than micro grids on the household level, because itenables energy balancing within a balancing group and couldhelp very soon to integrate renewable energies. The decisionif high or medium is strongly dependent on the potentialapplications and is left to discuss. Großschonau as VirtualEnergy Storage[14] shows that with about 1200 inhabitants

there is a 10% possibility to compensate for fossil fuelsthrough coordinated, communal pumped storages.

2) Sustainability: Medium to high. The scenario helps tointegrate REs into the grid, helps to reduce energy losses,enables more decentralized generation without the need forreinforcing the existing grid infrastructure, and uses existinginfrastructure versus new devices.

3) Market potential in 10 years: Medium. Depends onmarket prices and/or regulation. High costs without subventiondifficult.

4) Innovation: Medium. Some practices are already in use.

C. Battery grid - coupling of existent accumulators

Renewable energy generation is assumed to be the futureof acquiring energy. The most important problem is storingthe energy from fluctuating energy sources like solar or windpower to shift the generated energy to times when renewablegeneration is at a low. Storage solutions with high enoughcapacity are yet still expensive to produce and maintain. Therising amount of portable devices, like notebooks or mobilephones, cordless drills, lawn mowers, electric scooters, andcars on the other hand, do already store energy at homesand offices - the presumed place of future generation. Inthis scenario, portable, rechargeable battery driven devicesare used for absorbing the peaks of generation, as well assaving energy consumption at times of low generation. Thiswill lead to a flattened load profile with the sum of electricityused, similar to the generation. To achieve batteries chargingwhen generation is high, all chargers need to be pluggedinto a separate power outlet of a second controlled powercircuit feeding electricity on a demand-supply basis. Thiscan be implemented on a one office or household basis, orwith communication between controllers of buildings secondcircuits, virtually anywhere on a continent sized grid.

1) Load management potential: Low. The scenario couldcontribute to overall grid stability, increase the base load, andhelp integrate REs. Capacities and loads are too low, but couldprevent blackouts.

2) Sustainability: Low to medium, positive effects arenice to have but do not make a big difference. However,infrastructure needs and material costs are low, and the sumof devices connected to the grid could shift loads.

3) Market potential in 10 years: Low. Depends on reason-able business models (e.g. special tariffs, products bundling,etc.) and is a high effort to implement with existing devicesfor the low gain.

4) Innovation: High. Not done yet.

D. Wireless charging as a service (virtual storage)

The rise of portable rechargeable devices of differentproducers without standards of chargers and plugs leads tolarge amounts of different chargers scattered over ones home.Introducing a wireless power charger, capable of refuelingmany of those devices through sheer proximity could bea highly desired asset to many households. The wirelesscharger connected to others deciding to charge now or not

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as a virtual union can pose as a significant player on theprimary, secondary or tertiary regulation energy market. Anowner of such a system could offer the charging device as aservice to keep cost of purchase for the user at an extremelyaffordable level to gain importance.

1) Load management potential: Low. Depends on massadoption and participation.

2) Sustainability: Low. Additional devices with yet stillhigh losses, and additional new infrastructure are needed,possible electric smog considerations.

3) Market potential in 10 years: Low. Similar to batterygrid scenario, but offers additional customer value for themarket models.

4) Innovation: Low to medium. High for the wirelesscharging part, medium for the demand response part, low forthe service part.

E. Re-use of batteries

This scenario combines two important aspects for a greenplanet: recycling and making fluctuating renewable energygrid-friendly. Electric cars are the new hope for makingmobility more ecologically friendly, but battery life-cycle orreuse is not yet considered. Most of the current batteriesproduced are made of toxic materials and are withdrawn fromservice after several cycles of recharge, still working at e.g.50% of their original capacity. An electric car company orbattery replacement contractor could collect and re-use theunited batteries power for smoothing the generation profiles offluctuating generation to minimize the influences to the grid,instead of discarding batteries as waste. It can be assumed,that the prolonged battery life through reuse in a second lifecycle would tremendously improve their ecological balance.

1) Load management potential: Medium. This scenariodepends very much on market penetration of electric vehiclesand/or state of the art batteries.

2) Sustainability: Medium. Positive effects depend onavailable battery technology. A radically improved batterytechnology would offset advantages, but widespread use ofexisting battery technology is problematic. Medium becauseit’s not clear how old batteries can be processed. High becausereuse of materials improves efficiency, and making use of thehigh storage potential.

3) Market potential in 10 years: Medium. Depends verymuch on market penetration of electric vehicles and/or newbattery technologies, as well as far reaching recycling systemavailabilities to acquire re-useable batteries. Eventually com-petitive market additional to current recycling option.

4) Innovation: High. Not done yet.

F. Usage of thermal processes in industry etc.

A large amount of processes in industry and buildingsare thermal processes, like cooling and heating duringproduction, or simple warm water generation. In additionto that, most of the welfare facilities, swimming pools,refrigeration units, data centers, offices, and other commercial

buildings like shopping centers or whole super market chainsare equipped with HVAC1 -systems. It is state of the art toestablish bilateral contracts based on monetary incentiveswith large energy customers to shut down processes manuallywhen deemed necessary by the grid. This scenario showsthe possibility of automating the process of turning downusage and monetary transaction. These systems could becoordinated by networked automated communication to turnon or off predictably in synchrony. The sum of these energyintensive processes within these buildings, results in a largepotential for shifting loads on the demand side towards ahighly predictable energy curve. The goal of this scenariois to integrate this potential in the loop of generation anddemand.

1) Load management potential: Medium potential regard-ing both quantity and quality. Peak loads can be reduced. Chal-lenge to match energy used with renewable energy produced.

2) Sustainability: Medium. Positive effects should clearlyprevail, brings more efficiency, in most cases existing infras-tructure is used, but a process can move out of its optimalworking point.

3) Market potential in 10 years: Medium. Depends onmarket prize for electricity and/or attractive business models.For Austria this is low, since many water storage power plantsexist.

4) Innovation: Low. Approach already in use, but mostlyused for load profile smoothing.

G. Social web 2.0 as smart grid assetA large amount of private internet users use social networks

for connecting to friends and networks of people with sameinterests. Some hardware devices already use social networksto enable users to integrate real world data into the digitalworld. Some examples: A scale that twitters weight measured,so friends can comment encouraging messages; GPS enabledSmart phones and tablets enable users to show their networksof people locations they go to and what they are doing;Diabetics can share their insulin readings with fellow friends,patients or their physician and receive advice or encouragingsupport and track their history.

All these technologies either use publicly availableapplication programming interfaces (API) system operatorscreated for different social network applications to use, or tointegrate available ones into their product.

To enable smart grids for social web 2.0 applications, smartmeters would have to provide a public API for applicationdevelopers. Developers can then develop smart meter applica-tions for different devices or social networks for consumersto use at will. Example applications could be: Monitoringtheir energy usage on their mobile devices combined withvariable tariffs the customers ability to monitor anytime, any-where can lead to behavioral changes, consuming electricity

1Heating, Ventilating and Air-Conditioning

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price dependent; Creating a competition based energy savingscommunity of neighborhoods worldwide The user allows thecompetition site to access their smart meter readings to showsums and statistics of local neighborhoods electricity usagechange over time nurturing competition towards reducing thebase load; Motivating grid beneficial real life user behaviorthrough online games based on real meter data insteadof fully automating demand response where smart metersreceive commands from utilities and tune down electricityuse, the users understanding and acceptance can be greatlyincreased through involvement in deciding how and how muchto help the grid in a game environment that mirrors but isphysically connected to the real environment; Scientific opt into share data anonymously for smart grid research consumersnot particularly interested in helping the grid but willing tocontribute something, could decide to share their consumptionbehavior data anonymized but openly with scientists for futureresearch, e.g. simulations.

1) Load management potential: Low. Dependent on openAPIs for smart meter producers and consumer adoption of de-veloped applications. Scenario does do more energy reductionthan load shifting.

2) Sustainability: Medium. Due to a positive educationaleffect. The environmental potential of scenario V2G and C2Gcan be significantly increased, but scenario on its own - lowpotential. The working scenario could use energy saving asload shifting (bundled with financial gain of a suitable tariff)

3) Market potential in 10 years: Low. Depends on adoptionof smart meter producers and household device producers toprovide open interfaces, and developers creating appealingapplications, possible security considerations. Target group areweb 2.0 user who have smart meters and an interest in theenvironment.

4) Innovation: High. Has not been done yet.The provisional assessment discussed for each developed

scenario can be rated in each of the already mentioned criteriain a scale from zero to one [0...1]. For the concluding overallrating, the single factors where multiplied.

As shown in table II the four scenarios: Building to grid,Microgrid for buildings with PV generation, Microgrid formunicipalities, and Re-use of batteries have the highest ratingsand are the most promising in Austria within the next tenyears from the interdisciplinary team of authors perspective.The still well rated, but already being researched scenariosElectrical vehicles and Consumer to grid automation willnot be studied in more detail for this project. The next stepswill be preparations for focus groups and expert surveysof decision makers, financiers, and providers to realize newscenarios.

III. CONCLUSION AND OUTLOOK

Automated demand response has the potential to be anessential future tool for maintaining the balance of supplyand demand in electrical energy systems with a very high

TABLE IIPRELIMINARY ASESSMENT OF SEVEN FUTURE SCENARIOS, FACTORED BY

FOUR EQUALLY IMPORTANT CRITERA

Existing andmissing

scenarios

Loadmanagement

potential

Sustainabili-ty

Marketpotential in

10 years

Degree ofinnovation

Overallassessment

1) 1 0.8 0.2 0.6 0.0962) 0.8 0.8 0.8 0.4 0.2053) 0.4 0.4 0.2 0.2 0.0064) 0.6 0.4 1 0.4 0.096A) 0.4 0.8 0.8 0.6 0.154B) 0.8 0.8 0.6 0.6 0.230C) 0.2 0.4 0.2 1.0 0.016D) 0.2 0.4 0.2 0.4 0.006E) 0.6 0.6 0.6 1.0 0.216F) 0.6 0.6 0.6 0.2 0.043G) 0.2 0.6 0.2 1.0 0.024

The before noted textual rating in the degrees low:0.2, low-medium:0.4,medium:0.6, medium-high:0.8, high:1.0 was transformed to numbers andmultiplied to reach an overall assessment.

density of generation from renewable sources, but to achievethis, more developments of demand response scenarioshave to be enabled. The found scenario kit to compareexisting and outline missing, possible future demand responsescenarios, provides an analysis basis for policy makers,industry, and inventors. Some of the found, missing scenariosalready turn out to have more potential than others in thepreliminary analysis. The next step will be to evaluate thefour most promising future demand response scenarios indetail together with focus groups and expert surveys ofdecision makers, financiers, and manufacturers. Especiallyecological, technical, social, and economical factors need tobe analyzed as a multidisciplinary phenomenon in order toidentify barriers and starting points for future implementationsin every step.

• Ecological - The ecological reasoning for a scenariobeing enabling, improving, or beneficial for our planet,especially concerning used dangerous materials, productlifecycle, recycling possibilities and logistics, and emis-sions, especially CO2.

• Technical - Closely looking at the technological meansneeded to realize a scenario, the availability of each tech-nology by year or geography, necessary infrastructure,risk assessment of partial or complete technical failure,and maintenance overhead.

• Social - Analyzing the necessary degree and potentialproblems in acceptance or use of a product by people,companies or governments, parameters of changed qual-ity of life, defining margins of gained benefits weighedagainst comfort levels.

• Economical - The short and long term costs for a sce-nario, its estimated macroeconomic effects over time,economic viability of a product with break-even scenariosdependent on mass, time, or adoption rate, necessary seedmoney or possible licensing or patenting scheme, andcurrent potential industry partners.

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The promising DR scenarios need to be analyzed in respectto these factors with the goal to provide a basis upon whichdecisions can be made in regard to further development ofdemand side energy management concepts.

ACKNOWLEDGMENT

This research and publication was made possible by theFederal Government of Austria - managed by the AustrianResearch Promotion Agency. This paper is based on thefindings of the project titled Demand Response for AustrianSmart Grids and was granted 100% of all costs in the NeueEnergien 2020 3rd Call by the Climate and Energy Fund inthe topic area Energy systems, networks and users.

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