Moving the energy industry from demand- to supply-driven Peter Evans-Greenwood Andy Mulholland 2007-07-24 In collaboration with

A Use Case to demonstrate ….. The challenges of a shifting focus in business activity Predictive, managed, understood … rules, Based on Transactions and not events Constrained Markets.. Geography, Legislation, .. Communication and Technology Removal of all the above is now the norm Events, scale, complexity, policies are the new elements It’s a Market driven change too …

The challenges of a shifting focus in business activity

Predictive, managed, understood … rules,

Based on Transactions and not events

Constrained Markets.. Geography, Legislation, ..

Communication and Technology

Removal of all the above is now the norm

Events, scale, complexity, policies are the new elements

It’s a Market driven change too …

Electricity distribution since Samuel Insull We generate electrons They get pumped down a wire Devices consume them

Fast forward to the present Population A growing population that is becoming increasingly urban Energy Increasing energy demands to feed our modern lifestyle Water Climate change is changing where the water falls There is less water to go around We’re struggling to keep up with energy demands Water needs energy Energy needs water We need to use less!

Water needs energy

Energy needs water

Demand shaping via AMR Smart appliances let us shape demand Smart appliances let us shape demand Smart appliances let us shape demand PowerCorp balances supply and demand In home panels providing (near) real time visibility into usage Two-way AMR lets us read the meter, and send control signals Smart appliances let us shape demand

Demand shaping via AMR Smart appliances let us shape demand Smart appliances let us shape demand Smart appliances let us shape demand PowerCorp balances supply and demand In home panels providing (near) real time visibility into usage Two-way AMR lets us read the meter, and send control signals Smart appliances let us shape demand There are problems… How do we scale centralised decision making? What is the impact of an open energy market? Where does micro generation and/or CHAP fit?

How do we scale centralised decision making?

What is the impact of an open energy market?

Where does micro generation and/or CHAP fit?

Electricity distribution tomorrow Multiple manufactures A network, rather than a supply chain Consumers exporting excess Micro Generation Micro Generation Multiple manufactures A more diverse range of technologies No common owner !

Moving to supply driven Match supply & demand Price signal Energy Market

Moving to supply driven Match supply & demand Price signal Energy Market

Moving to supply driven Match supply & demand Price signal Smart meters let us leverage a real time supply signal in the home Control signals let us turn of unwanted devices We make a local decision to optimise our own environment We can factor micro generation into the decision Energy Market

Moving to supply driven Match supply & demand Price signal Smart meters let us leverage a real time supply signal in the home Control signals let us turn of unwanted devices We make a local decision to optimise our own environment We can factor micro generation into the decision Energy Market There are problems… How do we manage configuration? How do we optimise individual devices? How does import/export work?

How do we manage configuration?

How do we optimise individual devices?

How does import/export work?

An private internal market Price signal Energy Market Internal Energy Market

An private internal market Price signal Devolve decisions to optimise power usage to the appliances (agents) Create a market to support price location Explicit support for export/import P2P auto-configuration Energy Market Internal Energy Market

An private internal market Price signal Devolve decisions to optimise power usage to the appliances (agents) Create a market to support price location Explicit support for export/import P2P auto-configuration Multi-agent market-based resource balancing Energy Market Internal Energy Market

The big picture What happens when we have demand driven homes demand driven regions demand driven networks Local generation, sharing our excess Each participant generates, imports and exports to optimise their usage

What happens when we have

demand driven homes

demand driven regions

demand driven networks

What’s going to get us there? Smart metering and smart plugs show us the way We already have a demand signal, though somewhat delayed We’re retro-fitting appliances with smart plugs to support demand management Why don’t we make this infrastructure a little smarter Upgrade the sensor network to an agent protocol Enable embedded reasoning This lets us push the decision making down to the edge … and enable it too scale This will give us a generation of much more efficient appliances Energy star: something customers pay money for! And sets us up for markets in the future

Smart metering and smart plugs show us the way

We already have a demand signal, though somewhat delayed

We’re retro-fitting appliances with smart plugs to support demand management

Why don’t we make this infrastructure a little smarter

Upgrade the sensor network to an agent protocol

Enable embedded reasoning

This lets us push the decision making down to the edge

… and enable it too scale

This will give us a generation of much more efficient appliances

Energy star: something customers pay money for!

And sets us up for markets in the future

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