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Empower 2009 Smart Grid
 

Empower 2009 Smart Grid

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    Empower 2009 Smart Grid Empower 2009 Smart Grid Presentation Transcript

    • Smart Grids: Enabling Demand Response Dr. Rahul Tongia Program Director Center for Study of Science, Technology & Policy Bangalore Carnegie Mellon University Pittsburgh, PA, USA Dr. Rahul Walawalkar Anupam Thatte Sr. Consultant Research Engineer Customized Energy Solutions CSTEP Philadelphia, PA, USA Bangalore, India Insert your Company Logo Adapt colour and size of 0 background
    • Outline • What is a Smart Grid? • Why do we need Demand Response? • How smart grid can enable Demand Response? • Drivers & Key Issues for adaption of Smart Grid • Smart Grid Initiatives around the world Insert your Company Logo Adapt colour 1 and size of background
    • “Smart Grid” “A smart grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost and increase reliability.” Wikipedia (More formal definitions are far more complex) Insert your Company Logo Adapt colour and size of background 2
    • Smart Grid Functionality Objectives of the smart grid are Enabling informed participation by customers Accommodating all generation and storage options Enabling new products, services, and markets Providing the power quality for the 21st century economy Optimizing asset utilization and operating efficiently Addressing disturbances through automated prevention, containment, and restoration Operating resiliently against all hazards Insert your Company Logo Source: US Department of Energy Adapt colour and size of background 3
    • Broader Aspects of Smart Grids • Generation Distributed Generation & Renewable Integration • Transmission Improve transfer capacity & Maintain Reliability (avoid blackouts) • Distribution Area of most effort One aspect is “smart metering” Demand Response aka Load Control Insert your Company Logo Adapt colour and size of background 4
    • Why demand response ??? In electricity markets where all generators are paid the market clearing price under the uniform price auction structure, DR can result in an appreciable reduction in system marginal costs of production during peak time. Various studies have suggested a goal for at least 5% of demand response in competitive electricity markets to mitigate issues such as market power, uneconomical investment in peaker units. Recently some researchers and policy makers have suggested DR can also play a role in mitigating the variability in supply introduced by renewable energy sources such as wind and solar PV. Insert your Company Logo Adapt colour and size of background
    • Variability in Demand Source: Walawalkar et.al 2007 Insert your Company Logo Adapt colour and size of background
    • Marginal cost of electricity depends on the demand Insert your Company Logo Source: Walawalkar et. al 2008 Adapt colour and size of background
    • Variability in Hourly Energy Prices in different regions from year to year Insert your Company Logo Adapt colour and size of background
    • Types of DR Programs Insert your Company Logo Adapt colour and size of background
    • Potential benefits of demand response: • Increased competition • Operational savings • Lower market prices • Reduced price volatility • Improved grid reliability • Improved customer options • Providing ancillary services • Positive environmental benefits Insert your Company Logo Adapt colour and size of background
    • Role of Smart Grid in Enabling DR Insert your Source: Walawalkar et. al 2007 Company Logo Adapt colour and size of background
    • Integrating energy efficiency and demand response Equipment / DR Programs Customer Building Control Strategy Emergency Economic Ancillary Type Component (Capacity) (Energy) Services Air Conditioners Cycling/Forced Demand Shedding Water Heaters Cycling Residential Pool Pumps Cycling Demand limiting during on peak Chillers period Commercial Chillers Pre-cool bldg over night- storage HVAC DX Forced Demand Scheduling Refrigerator/ Prioritized Demand Shedding Scheduled dimming of selected Lighting circuits Chillers Demand Limiting on time Schedule Electric Furnace Curtail (during peak period) Industrial VSDs Limit Output on Scheduled basis Production Eqpt Prioritized demand on selected units Insert your Company Logo Source: Walawalkar et al 2008 Adapt colour and size of background
    • Smart Grid Challenges Are all players aligned? Consumers Worry about complexity and uncertainty (and privacy) Utilities Today, earn more by selling more (“costs-plus”) Regulators Will they allow new tariffs, pass-through of costs, etc.? Complementary players (telecom, appliances, energy managers, etc.) Are they ready? Policy-makers Is there the political will for change? Insert your Company Logo Adapt colour and size of background 13
    • Developing Regions: Real Challenges Dramatically higher growth rates of energy demand ~10% annual growth (demand) Shift to “modern” energy sources Utilities there have limited R&D or IT skills Struggle with financial and energy losses, including theft IF they leapfrog, there may be an OPPORTUNITY!!! Insert your Company Logo Adapt colour and size of background 14
    • Reality Check Insert your Company Logo Adapt colour 15 and size of Photo: Marcus Forrell background 15
    • Drivers for Smart Grid & DR US and Developed Countries India & Developing Countries > Meter reading > Power system is a mess > Grid modernization • Loses Rs. 1/kWh on average > Robustness • Supply << Demand • Typical requirements of 15-18% • 20+% shortfall system reserves for grid reliability > Growth is a big need > Saving $$ > Theft is a major concern • Deregulation exposed hidden • Large segment of load is costs unmetered (agriculture) • Needs Time of Use (ToU) if not > Reforms ongoing Real Time Pricing (RTP) • May allow new operating models Insert your Company Logo Adapt colour and size of background 16
    • Future (or even Subtle) Drivers US and Others India >Carbon and green >Remove the “human >Bi-directional power element” in operations • (Plug in) Hybrid vehicles >The peak is NOT industrial >New services >Smart peak management • Home automation • No more load shedding • Home monitoring • Even in emergencies can allow • Green Power smart control >LEAPFROG Insert your Company Logo Adapt colour and size of background 17
    • Current Smart Grid Initiatives Electric Power Research Institute (EPRI-IntelliGrid) National Energy Technology Labs (NETL-Modern Grid) EU (European Technology Platform: SmartGrids) IEEE P2030 workgroup & SCC21 Smart Grid Standards GridWise Alliance & GridWise Architecture Council National Institute of Standards and Technology (NIST Smart Grid Interoperability Standards Project) and many many more …. Insert your Company Logo Adapt colour and18 of size background
    • Conclusions & Policy Recommendations Experience in US Markets indicate that Reliability based demand response programs are able to achieve desired level of participation due to significant capacity revenue potential and limited response requirements. Economic demand response program participation is much smaller. Policies that can bring low cost DR in market should be explored and encouraged to maximize the economic benefit from DR Significant opportunities exist with advances in energy efficiency technologies & smart grid implementation. Insert your Company Logo Adapt colour and size of background
    • Thank You! Contact Information: Rahul Tongia Ph.D. tongia@cstep.in Center for Study of Science, Technology and Policy (CSTEP), Bangalore, India Dr. Rahul Walawalkar Ph.D., CEM, CDSM rahul@ces-ltd.com Customized Energy Solutions Ltd., Philadelphia, PA, USA Insert your Company Logo Adapt colour and size of background 20