Accessing cost savings and revenue sources from new, innovative Utility programmes

Scott Petersen Business Development Director, Smart Grid Solutions, Europe & North Africa

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• Key challenges

• Market Drivers

• The role of buildings as a solution

• The Honeywell solution

• Future developments

• Value for building owners

• Summary

Agenda

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Electricity Sector key challenges

1.  Renewal of aging network infrastructure & reduction of future constraints

2.  Building & funding new capacity to meet growing demand

3.  The rapid and significant installation of new low-carbon and renewable generation

4.  Coping with intermittency inherent in high wind % in supply mix

5.  Coping with cross-border restrictions

6.  Reducing financial exposure to increasing trading market volatility

7.  Retaining & growing the profitability of business customers

Keep the lights on!

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No. of household appliances trebled since 1970

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The future –EVs, GSHPs, Renewables, IT

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These Challenges are real and local!

Romania’s Hidroelectrica to

Cut Power Supplies due to drought Three women are burned as Edgware Road pavement ‘explodes’

Power Cut destroys Christmas business

€100s billions of new investment required

RTE asks France’s Mayors to control

energy consumption at peak DMI ramt af et totalt udfald i elforsyningen

Elforsyningen blive afbrudt. Afbrydelsen omfatter kunder

omkring Grødbyvejen. Østkraft beklager den gene.

Strømafbrydelse lammer Sjælland og Sydsverige

Kulfyrede Ensted & Stigsnæs kraftværker lukker 2013

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Issues are growing - driving need for solutions

Danish spot hits negative value Electricity spot prices on the Danish market plummeted into negative territory for the first time on Sunday, Nordic power exchange Nord Pool figures revealed. The negative price was seen in Nord Pool's West Denmark price area, known as DK1, at 6:00-7:00 Central European Time, when prices slid to -€7.40/MWh on the Elspot Day-ahead market. Danish TSO Energinet.dk put the event down to “a combination of low demand due to the time of day and the day of the week, coupled with strong wind generation”.

EasthampstePrimary~Winter Peak Day (05-01-2010)Load Profile

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5

10

15

20

25

00:00 04:00 08:00 12:00 16:00 20:00 00:00

MVA

Physical limitof Primary Sub -station

Need to manage out peak between 16:30 & 20:30

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Buildings are one source of the problem

Commercial

Education

Manufacturing

Cold Storage

Pumping Stations

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•  Commercial and Industrial buildings all use electricity for different things in different ways

•  Don’t need it at full demand all the time

•  Buildings are able to reduce or turn off electricity for certain lengths of time without negatively affecting the way people operate within them

•  Aggregate flexible load from many buildings at the same time, quickly and efficiently

•  Virtual Power Plant of negative watts

•  Turning off 10MW of demand has the same impact as turning on 10MW of additional generation

•  No fossil fuel is used, so there are no fuel costs and no carbon is emitted.

A new resource – Flexible Load

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Buildings are also a solution

Commercial

Education

Manufacturing

Cold Storage

Pumping Stations

Transmission System Operator

Distribution System Operator

Energy Trader

Energy Supplier

Energy Generator

Access to the same resource provides range of solutions

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Connect Utility or Aggregator with end users on the network

& enable interaction

The Honeywell Solution

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A 3 Step Approach

+ + Energy Optimisation

Save Money

Save Carbon

Energy Efficiency

Save Money

Save Carbon

Demand Response

Save Money

Save Carbon

Make Money

Building Owner Benefits

Address base load then peak load

Base Load Reduction

Peak Load Management

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End-to-End Energy Solution

ACT Earth energy efficiency education & awareness behavioural programmes for staff

Keeping staff & visitors informed with live energy performance information screens in public places

Energy Dashboard

Demand Response •  Enable access to flexible electricity load shedding in buildings •  Revenue earning for building owner •  VPP build

Sub-Metering

Renewable Energy Solutions •  Best economic case tool for Solar PV, Solar Therm, Wind, Biomass therm & CHP, Geotherm •  Financing

Energy Retrofits •  Facility & consumption appraisal •  Energy equipment & controls upgrade & replacement •  Guarantees •  Financing

Understand & optimise your energy performance •  Detailed sub-metering, •  Energy monitoring & reporting •  Diagnostics in 4 levels

Attune Advisory Services

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A total facility approach

Lighting replacement, control systems &

LEDs

On-Site Technical Resource Management

Chiller upgrade/replacement &

absorption cooling

Building Management Systems

Zone temperature

control

Boiler upgrades, controls Combined Heat & Power

VSD motor control

Ventilation fans

High efficiency motors

Voltage reduction

Damper control

Plug load management

Solar gain minimization

Agnostic approach to technology – over 250 ECMs

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Typical load shedding areas in Buildings

•  Reducing the output of Air Handling Units, Fan Cooling Unit’s etc; •  Adjustment of non-critical internal environmental conditions; •  Localised temperature set-point adjustments; •  Reduced motor & pump loads, via Variable Speed Drives settings; •  Space pre-cooling or heating, prior to initiation of the event; •  Turning off non essential pumps eg ornamental lake fountains; •  Reducing non-essential lighting, within compliance settings; •  Isolation of lighting zones (e.g. near windows); •  Pre-cooling refrigerated units prior to initiation of the event;

•  Turning off external sign lighting.

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Transmission System Operator: •  Accommodate wind volatility in the supply mix •  Accommodate unforeseen demand peaks •  Compensate for late generation & generation trips

Distribution System Operator: •  Avoid/defer network upgrade investment •  Accommodate daily peak demand •  Dynamically observe major electricity users on network •  Re-engage with end-users •  Managing network constraints in operational timescales •  Minimise customer outages

Energy Trader: •  Reduce exposure to market by optimising contracting position •  Rebalance positions quickly due to sudden supply constraints

Energy Supplier •  Enhance margins & lengthen contracts with business customers •  Create new service markets with new revenue streams

Energy Generator:

•  Provide peaking power generation at half conventional cost, requiring no transmission infrastructure, at half operating cost, built in half the time & with no carbon emissions

How will they use your flexible load in the future?

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Peak Electricity Demand in Denmark

EasthampstePrimary~Winter Peak Day (05-01-2010)Load Profile

0

5

10

15

20

25

00:00 04:00 08:00 12:00 16:00 20:00 00:00

MVA

Physical limitof Primary Sub -station

Need to manage out peak between 16:30 & 20:30

Nationally

By Sub-station

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Value for the Building Owner

Commercial Offices •  Energy Efficiency Improvement – 20%

-  Heating, Chillers, Controls, Lighting

•  Demand Response Programme •  265 kW load on 18 Sep 2012 •  97 kW of which was shed for 2 hours:

4pm – 6pm •  €24k per MW pa typical payment

(depending on availability)

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Summary

Fast, Clean and Green

•  Increasing change = new challenges for Utilities and opportunities for large Facility Owners

• New business models developing to earn money from the smart grid

• Mutual benefits for Utilities and Facility Owners • Provide access to huge, clean resource – flexible load

• Energy Efficiency + Demand response • For Utilities looking for tomorrows solutions, today