1 / 24

Aggregator-based Implementation of Demand Response Programs

Aggregator-based Implementation of Demand Response Programs. Kenneth D. Schisler, Senior Director, Regulatory Affairs Bradley J. Davids, Senior Director, Utility Solutions October 16, 2007. Agenda. Introduction to EnerNOC

cutler
Download Presentation

Aggregator-based Implementation of Demand Response Programs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Aggregator-based Implementation of Demand Response Programs Kenneth D. Schisler, Senior Director, Regulatory Affairs Bradley J. Davids, Senior Director, Utility Solutions October 16, 2007

  2. Agenda • Introduction to EnerNOC • Demand Response from the Commercial & Industrial Sector: Experience and Perspectives • Demand Response Opportunities in Colorado

  3. Founded in 2001, EnerNOC is the premier demand response provider focused on the commercial, institutional, and industrial market in North America. About EnerNOC Resource reliability – Unparalleled track record, with 880+ MW of demand response capacity under contract; almost 2000 facility sites under management; hundreds of DR events deployed to date – we guarantee performance to our utility customers Turnkey solution – Full service, “end-to-end” offering – auditing, education, engineering, permitting, financing, metering, enrollment, installation, data and payment reconciliation, maintenance – we remove complexity and increase end-user participation Advanced technology – 24/7/365 metering and web-based monitoring and control through open architecture technology that provides near real-time visibility into performance and availability of DR assets Industry-leading customer service – Deep experience in energy management – skilled sales and operations team that thoroughly understands the needs of commercial and industrial customers Financially stable – Strong balance sheet, publicly traded company on NASDAQ (ENOC)

  4. Energy Network Operations Center Our Network Operations Center (NOC) features fully automated demand response capabilities to ensure that curtailment happens quickly, efficiently and consistently for both the utility and the customer. • The NOC automatically initiates customized demand response protocols at customer sites, so that load reductions can occur within seconds after an event is called. • EnerNOC captures and reports customer meter data in 1-, 5-, 15-, or 60-minute intervals to utilities and grid operators, providing real-time and direct visibility into demand response performance. • The NOC’s automated capabilities make it easy for end-use customers to respond to market signals. The NOC monitors customer event performance data in real-time, and automatically identifies and targets underperforming sites to ensure maximized end-user performance. Upon event conclusion, the NOC notifies participating customers and automatically restores normal operations at customer sites. The NOC’s sophisticated measurement and verification services ensure high quality performance data after an event.

  5. Recent EnerNOC utility contracts • Southern California Edison • 160 MW, 5 year contract* • Public Service Company of New Mexico • 30 MW, 10 year contract • Pacific Gas & Electric Company • 40 MW, 5 year contract • Tampa Electric Company • 25 MW, 4 year contract • Tennessee Valley Authority • Pilot program (summer 2007) * pending regulatory approval

  6. Agenda • Introduction to EnerNOC • Demand Response from the Commercial & Industrial Sector: Experience and Perspectives • Demand Response Opportunities in Colorado

  7. Commercial & industrial demand response strategies Curtailment and Load ManagementTemperature set-points, air handlers, lighting, signage, pumps, process loads, refrigeration, motors, elevators, production scheduling Self GenerationEmergency/backup generators, peaking and continuous-duty distributed generation, UPS systems

  8. Examples of “resource providers” Commercial Office and High Tech Education Food Sales and Storage Government Healthcare Light Industrial Lodging and Resorts National accounts are increasingly “expecting” demand response programs as part of utility offerings, based on experiences in active DR markets 8

  9. Demand response from customer perspectiveUniversity provider combines generation with load curtailment to cut demand by more than 1.7 MW. Voluntary Extension7:15 PM Notification 1:00 PM Event Start 1:30 PM Event End 6:00 PM Baseline Meter Demand Generator Output Performance: 1,727 kW Commitment: 1,450 kW Load Curtailment kW • Provider Summary • Commitment: 1,450 kW • Performance: 1,727 kW

  10. Relay Control Module and 24V Power Source (Outputs to the transfer switch and lighting controls) iLon Gateway/Meter UPS Typical site installation EnerNOC Site Server (typically installed next to the transfer switch)

  11. Demand response results from grid perspective Total ISO New England Demand Response Performance, August 2, 2006

  12. “Firm” demand response can have a material impact on system peak demand Case Study: Connecticut • ~7,500 MW peak • 613 MW of dispatchable (30-minute notice) demand response currently – 8.2% of peak • Firm DR capacity is projected to soon reach ~10% of peak demand Connecticut Load Concentrations “Today’s peak record would have been hundreds of megawatts higher if it were not for ISO New England’s demand response programs . . .” ISO-NE, August 2, 2006

  13. Aggregator-based demand response programs: the “functional equivalent” of a peaking power plant Like a peaking plant . . . • Output can be measured and verified in near real-time • Capacity can be dispatched by utility control room and brought on-line in 10 to 15 minutes (or less) – qualifies as “synchronized reserves” in PJM • Can be used to balance intermittent resources, such as wind • Assets can perform for several hours, if needed • One supply contract from utility – can include penalties for non-performance

  14. Advantages of demand response programs vs. traditional peaking power resources • DR capacity can be “built” very quickly(6 – 12 months); 100+ MW in 60 daysfor ISO-NE in 2005 • Capacity can be precisely targeted at areas of highest system need (for example, to defer distribution system upgrades) • Almost always less costly than building anew peaking plant – and doesn’t require addedT&D infrastructure • Load curtailment resources are emissions-free • No “NIMBY” siting issues • Reliable (no “forced outage” risk) • Long-term contracts are not required – can be expanded incrementally and locationally if needed • Performance tends to increase (as well as rated capacity) in conjunction with system peaks • Reduces costs for customers; improves customer satisfaction

  15. A few caveats . . . • Annual availability has limits – typical program design targets most critical 50 to 100 hours per year • Depending on portfolio mix, performance may be limited during shoulder months and off-peak hours • Output can vary within a range of “rated output” – typically +/-15%, due to variability of loads controlled and baseline calculation methodology • Total capacity is limited to approximately 10% of overall system peak

  16. Agenda • Introduction to EnerNOC • Demand Response from the Commercial & Industrial Sector: Experience and Perspectives • Demand Response Opportunities in Colorado

  17. Why demand response?Demand response is a cost-effective and reliable way to meet the electric demand peak, which occurs for very few hours per year. The alternative is to build generation and transmission capacity that is unused 99% of the time. ~10% of infrastructure is designed to meet peak demand that occurs during 1% of the year

  18. Typical load duration curve

  19. The challenge: bridging utility resource needs with end-user realities Commercial & industrial end-users are: Much more concerned about running their business than controlling energy costs Inadequately staffed to focus on energy-related activities Uncertain about their ability to reduce load without impacting business operations Not interested in complex, inflexible contract terms Reluctant to accept penalties for non-performance Utility needs: Resources that are absolutely dependable – in amount, location, duration, ramp-up time Resources that can relieve constrained zones quickly, and are flexible in scale Resources that can be monitored in near real time, and are verifiable to regulators Resources that are cost-effective and environmentally “clean” Resource providers that can financially guarantee performance

  20. Load aggregation provides risk management to utilities and end-use customers Customer 1 Customer 2 Customer 3 Customer 4 Demand Response Aggregator Customer 5 Customer 6 Customer 7 Utility Customer 8 Customer 9 Customer 10 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer X 0% RISK 100% RISK 0% RISK

  21. Typical time of day distribution of top 100 hours Possible program timeframe: 10 am to 7 pm

  22. Typical seasonal distribution of top 100 hours

  23. Low High Customer Incentives Year Round Limited Months Program Period Curtailment Only Curtailment/Generation Critical Hours Allowable DR Measures 24/7 Event Window Inhibit DR program design . . . a balancing act Each program design element needs to be carefully chosen to balance system needs with the need to stimulate customer program participation. Range of Design Choices Stimulate 100+ hours/year Availability <50 hours/year >30 min Instant Response Notification

  24. Questions? Ken SchlislerSenior Director kschlisler@enernoc.com (410) 745-8104 Brad DavidsSenior Director bdavids@enernoc.com (303) 385-0325 EnerNOC, Inc. 75 Federal St. Suite 300 Boston, MA 02110

More Related