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Demand Response and the Utility of the Future

Demand Response and the Utility of the Future. Phil Davis, Senior Manager Demand Response Resource Center  Schneider Electric (404) 567-6090 http://blog.schneider-electric.com/main/category/smart-grid/ www.schneider-electric.us/go/utility. What is “Smart Grid”. A Marketing Term (IEC)

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Demand Response and the Utility of the Future

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  1. Demand Responseand theUtility of the Future Phil Davis, Senior Manager Demand Response Resource Center  Schneider Electric (404) 567-6090 http://blog.schneider-electric.com/main/category/smart-grid/ www.schneider-electric.us/go/utility

  2. What is “Smart Grid” • A Marketing Term (IEC) • Communications enabled Electric Grid (lots of people) • Interactive (Silicon Valley) • Health Hazard (Tin Hat Crowd) • A Colossal Bore (The Americal Public) • The strongest civilization altering force since sliced bread (me and all the smart people)

  3. What is “Demand Response”? US Federal Position: “It is the policy of the United States that time-based pricing and other forms of demand response….shall be encouraged, the deployment of such technology and devices….shall be facilitated, and unnecessary barriers to demand response participation in energy, capacity and ancillary service markets shall be eliminated.” – US Energy Policy Act of 2005, Sec. 1252(f) US DOE Demand Response Definition: • Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.

  4. What is “Demand Response” Really? Demand Response is how we do that: Everything about an (intentional) electron’s journey is shaped by someone’s desire to accomplish a goal. Those goals are determined by the vast community of electron users; i.e., customers. In that sense, everything a utility does is Demand Response. Electrons obey the laws of Physics: • They travel to ground over the paths of least resistance. Our job is to get them to do a little work along the way without wreaking havoc, which they like to do. Now is the time to re-design demand response to meet societal and investor goals of efficiency and environmental stewardship

  5. What does Energy Efficiency mean on a Smart Grid? • Envelopes and Distribution are as efficient as possible until the next kWh of savings is more costly than a kWh of generation • Microgrids • Conservation Voltage Reduction • Robust interactivity (device to device or grid to grid) • Efficiency defined outside of economics is doomed to failure

  6. Market Drivers Sustainability and Carbon Management Rising consumption Growing pressure on infrastructure More ambitious environmental goals Volatile Wholesale Energy costs Fiercer global competition Water shortages Tighter economic pressure Regulatory demands Complex sourcing options We need to solve these challenges to make the difference!

  7. Economic Driver #1: Congestion

  8. Economic Driver #2: Reliability

  9. Economic Driver #3: Energy Costs • Commercial Building Facts: • Owner: Rockefeller Group Development Corp. • Location: 1221 6th Ave, Mid Manhattan NY • Peak Load: 12.5+ MW • Size: 49 stories plus 4 sub floors and “attic” • Tenants: Residential, Data Center, Restaurants, Commercial Offices • Building Automation System – TAC Continuum • DR – Originally enrolled 600kW in NYISO ICAP demand response program

  10. Integrated Efficiency Planning • Environment • Procurement • Reporting (SOX) • Efficiency • Safety • Reliability • Stability

  11. From Left Field: The Utility of the Future Capital Asset Manager Distributed Operator Monolithic Central Plant One Way Silo’d Functions Automated Efficient Operator Customer Engaged Banker Spends Money to Make Money Serves Customers to Make Money

  12. Inevitable Changes • Infrastructure and service, not energy, become revenue drivers • Electrical attributes become the products • Regulatory regime changes • Distributed energy sources and microgrids • Key Standards adoption=business efficiency • Load shapes will matterDesigning for today’s energy environment will limit the life of business investmentsEnergy Efficiency=Economic Efficiency

  13. Energy Management Power & Control Steel Industry THANK YOU!Phil DavisSchneider ElectricPhil.Davis@Schneider-Electric.com404-567-6090 2008 Acquisition of Xantrex, leader in renewable energy solutions 1999 Groupe Schneider becomes Schneider Electric, focused on Power & Control 2007 Acquisition of APC corp. 1996 Modicon, historic leader in Automation, becomes a Schneiderbrand 2003-2008 Targeted acquisitions in wiring devices and home automation(Lexel, Clipsal, Merten, Ova, GET, etc.) 1991 Square D joins Groupe Schneider 2005 Acquisition of Power Measurement Inc. 1988 Telemecanique joins Groupe Schneider 2003 Acquisition of T.A.C 1836 Creation of Schneider at Le Creusot, France 1975 Merlin Gerin joins Groupe Schneider 2000 Acquisition of MGE UPS Systems 19th century 20th century 21st century

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