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Transcript of VLS Smart Grid Project 2012 KJones...VLS Smart Grid Project ... Dynamic public/private demonstration...
VLS Smart Grid ProjectThe Smart Grid: Supercharging Energy
Efficiency and Demand Response in the U.S.
USAEE North American Conference
November 6, 2012
Presentation Overview
1. Overview of Research Project
2. The Smart Grid Defined
3. Pathways for Environmental Improvement
IEE Smart Grid ProjectThe IEE Smart Grid Project was initiated with the award of US Department of Energy funding which was secured with the leadership of Congressman Peter Welch and the Vermont Congressional Delegation.The IEE’s research is focused on:
•Examining best practices in smart grid implementation through 6 utility case studies.
•Addressing the legal, regulatory, and policy challenges of smart grid implementation including customer privacy concerns.
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VLS Case StudiesSacramento Municipal Utility District (SMUD)
$307M (41.4%) Meters, dynamic pricing, PHEVs, demand response
Vermont Transco/CVPS
$138M (50%) Meters and related systems
Commonwealth Edison (Com Ed)
Unknown ($5M DOE PV pilot) Smart Grid Innovation Corridor, 130k existing meters, 5 pilots including PV, intelligent substation, distribution automation, PHEV
Pecan Street Project
$25M (42%) Dynamic public/private demonstration project to develop a microgrid in large mixed use development
Salt River Project (SRP)
$114M (50%) Expand existing smart meters by adding 540k, dynamic pricing,
SDGE
$59M (47%) installation of a fully integrated wireless communication system covering up to 90% of the utility’s customers.
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Case Study Research Questions
1. What regulatory, legal, or institutional barriers or limitations are impeding the implementation of the Smart Grid?
2. What challenges exist to ensuring that the Smart Grid enhances customer value?
3. What policies are necessary to ensure that a Smart Grid helps the nation exceed its clean energy goals?
4. How can the Smart Grid enhance end‐use efficiency? 5. How can electric vehicles be integrated into a Smart
Grid in a manner that improves the environment? 6. How can the Smart Grid improve system reliability?
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Case Study Report Chapters
1. Legal, Regulatory, Structural Barriers, Including Privacy Concerns
2. Democratizing Demand Response
3. Supercharging Energy Efficiency
4. Integration of Distributed Generation & Storage Technologies
5. Achieving Environmental Improvement with Electric Vehicles
6. Automating the Distribution System, including Conservation Voltage Reduction
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Privacy Research
• Lessons learned from case studies
• Utility Privacy Policy Principles – Presented to APPA National Conference 2011
• Model Privacy Policy for Presentation to APPA Legal Seminar 11/2011
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US Energy Use Basics
• More than half of energy is used to make electricity for:
1‐ homes, 2‐ business, 3‐ industry
• One third of energy is petroleum and dieselfor cars and trucks.
• One sixth of energy is for all other uses.8
$ 4.5 billion was allocated to grid modernization under federal stimulus funding.
Source: EPRI
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EPRI Estimates a 2.8‐6.0 Benefit to
Cost Ratio
Operational Benefits• Remote meter reading• Improved outage
notification/management• Remote
connect/disconnect• Tamper Detection• Direct Load Control• Home Area Network
communication• Distribution system control
and monitoring
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Pathways to Environmental Improvement
1. Energy Efficiency and Demand Response
2. Electric Vehicle Integration
3. Distributed Generation and Electric Storage
4. Distribution Optimization
Energy Efficiency is using less energy to provide the same level of a given energy service. Goal is to reduce energy consumption (MWH).
Demand Response is a temporary change in electricity consumption by Demand Resources in response to market or reliability concerns. Goal is to reduce peak demand (MW).
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Energy Efficiency and Demand Response
The Smart Meter and AMI
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What does a smart meter mean for the customer ?1.A meter reader will no longer need to access your property to read the meter it will be sent to your utility wirelessly.2.On line tools or in‐home displays will allow you to view your hourly, daily and monthly energy use and participate in new Time of Use rates.3.Future uses may include programmable appliances and home energy monitoring devices including remote control of home energy use.
Supercharging Energy Efficiency
A Smart Grid provides:
1.The customer with more detailed and timely consumption information and enhanced opportunities for controlling end‐use.
2.The utility with much more detailed load information for improved measurement and verification.
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The Prius (Conservation) Effect
The Prius makes a strong anecdotal case for “letting the customer drive” when it comes to energy decisions.
A home energy monitor similar to a Prius’s dashboard monitor constantly indicates what effect your energy habits have on your efficiency.
The resulting “Prius Effect” is additional evidence that consumers will readily change their habits if exposed to feedback in real‐time.
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Discussion point: How much feedback is enough?
• Are web‐based billing information portals sufficiently engaging?
• Is the expense of a dedicated home energy display justified?
• How else can you provide useful feedback to the customer?
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Early experience from the field
• Home energy displays provide useful feedback but use may drop off quickly once customers learn the cost of appliance use.
• Customer insights via regular email alerts (e.g. comparison to history, budget, neighbors) have proven effective tools.
• Research is ongoing (including 2 Vermont consumer behavior studies).
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Source: The Brattle Group
Estimated pilot impacts
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
New
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Hyd
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OU
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Hyd
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Hyd
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SRP
Cou
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Hyd
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2
Con
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pact
(%)
IHD-Only Impacts IHD and Prepayment Impacts
IHD and Time-Varying Rates Impacts
Expanding Demand Response
Traditional Demand Response
• Primary utility control
• Open to limited end‐uses
• Limited customer options
• Incentives for participation
Smart Grid Demand Response
• Emphasizes customer choice
• Available to all customers
• Many customer options
• AMI allows Dynamic Pricing
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Smart GridDemandResponse
Traditional Demand Response
Dynamic Pricing Offers Opportunities for Reducing Peak Demand
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• Time of Use Rates – Time varying prices such as higher block during peak hours and lower off peak
• Peak Time Rebate – Incentives to reduce energy use during peak periods on high demand days
• Critical Peak Pricing – Time varying prices on high demand days only
• Real Time Pricing – Hourlypricing.
Customer Risk
Mandatory vs. Voluntary Dynamic Pricing
Alternatives Include:• Mandatory dynamic pricing• Default dynamic pricing with opt‐out option• Opt‐In dynamic pricing• Some states such as New York have prohibited residential dynamic
pricing
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Opt‐In
Opt‐Out
Mandatory
What are tradeoffs of high participation with potential consumer backlash versus lower participation with potential higher customer satisfaction?
Source: LBNL
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Case Study Salt River Project’s Residential
Time of Use and Prepay ProgramsTime of Use
• First Introduced in 1980
• Optional Price Plan
• Two pricing periods
• Seasonal prices
• Achieved approximately 100 MW in peak load reduction in 2010.
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Case Study Salt River Project’s Residential
Time of Use and Prepay ProgramsPrepay (M Power)
•Introduced in 1993
•Customers avoid a security deposit
•116,142 customers as 5/11
•Noticed decreases in energy usage and conducted 3 studies to estimate conservation
•Results revealed 12% decrease in kWh usage
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• Opt‐in programs can be successful
• Improved customer information via display and ability to control costs can both result in:
‐ Energy reduction (conservation effect)
‐ Enhanced customer relationship
SRP Lessons Learned
Key Policy Considerations
1. Level of necessary technology for sufficient customer feedback and response, including who pays
2. Type of dynamic pricing to implement, including level of customer choice/risk
3. Sufficiency of customer education4. Competition for resources with traditional energy
efficiency programs5. Ability to opt out on smart meter6. Consumer protection concerns, including low income
customers7. Privacy
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The Way ForwardA Smart Grid can deliver carbon savings through:
• Supercharging energy efficiency & expanding demand response
• Integrating more clean energy
• Reduced emissions from smart charging electric vehicles
• Minimizing losses by optimizing the distribution system
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