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How Smart Grid overlaps with Energy Efficiency

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Smart Grid provides some energy efficiency savings, but it is often overlooked. This presentation shows some of that overlap.

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How Smart Grid overlaps with Energy Efficiency

  1. 1. Smart Grid & Energy Efficiency<br />Two ships passing in the night?<br />Jim Thayer<br />Resilience Consulting<br />©Jim Thayer<br />
  2. 2. Smart Grid can’t save energy by itself<br />“Bills don’t go down automatically just because you have a smart grid. The customers have to do something.”  <br />- Patrick James, Director of Smart Grid Technologies, TXU Energy<br />Can it really help energy efficiency programs?<br />
  3. 3. Load shifting vs. Conservation.<br />Demand Response programs typically shift energy usage!<br />Exposing users to time-of-use rates will encourage them to shift some usage to lower cost periods. This does not qualify as energy savings.<br />Some energy uses may be reduced by using, for example, dimmable lighting ballasts, producing a net conservation effect. <br />Only the curtailed energy usage counts towards energy efficiency goals!<br />
  4. 4. Smart Grid increases energy savings:<br />Energy usage feedback can increase energy savings.<br />Automated and continuous monitoring tools will improve yields.<br />Better electricity usage data can improve program designs.<br />Smart meters can reduce EM&V costs; savings can be reinvested.<br />Dynamic pricingcan reduce overall usage.<br />Smarter transmission management can reduce line loss.<br />
  5. 5. Energy Usage feedback<br />Energy use feedback lowers residential consumption by up to 11%. *<br />However, persistence of feedback savings is suspect…<br />Not much information about feedback saving associated with commercial and industrial users.<br />* King and Delurey, 2005<br />
  6. 6. Automated Diagnostics.<br />Whole building meter data continuously tracks performance revealing energy wasting issues.<br />Continuous monitoring can reduce rebound and increase energy savings persistence. <br />Combining meter data & equipment data permits load disaggregation and precision fine tuning.<br />Energy savings potential strongest in residential and small commercial buildings.<br />
  7. 7. More detailed electric usage data.<br />Better data going in; better results coming out.<br />Detailed baseline data about building’s energy use and target market load shape combined with better utility data management systems will improve the design of EE programs.<br />This will help identify priority targets and improve the effective yield of utility EE program offerings.<br />
  8. 8. Dynamic pricing effects.<br />Exposing users to dynamic pricing has reduced usage 4% in residences.*<br />Energy savings depends on whether the load is curtailed or simply shifted.<br />Impact depends on how high prices peak. CPP pricing effective at motivating when price differential are low.<br />* King and Delurey, 2005<br />
  9. 9. Reduced EM&V costs.<br />Use of 15 minute interval meter data results in more accurate baseline and post-implementation modeling that can identify targeted energy saving.<br />Using more accurate data for evaluation, measurement and verification may lead to significant cost savings compared to conventional on-site evaluation processes - permitting reinvestment of savings into more EE programs.<br />Also permits tracking of energy usage over time…<br />
  10. 10. Energy Savings Persistence<br />Better data will permit us to go beyond verification and track performance over time.<br />Continuous performance data can spot rebound effects and enable continuous commissioning to ensure energy savings persistence.<br />Retro-commissioning impacts made more enduring by ability to detect problems in building energy systems.<br />Energy savings “rebound” estimated from 5% to 40%<br />
  11. 11. Reduce Line Loss<br />The electric power industry loses 12% to 15% of all electricity produced. <br />One of the most effective ways to reduce line losses requires continuously adjusting voltage control settings in response to changing system conditions. For this approach to be effective, a centralized automatic process is required (ie., a “smart” grid). *<br />* EPRI Transmission Efficiency Initiative, 2010<br />
  12. 12. Conclusions<br />Measure-based incentives may be replaced with whole building approach.<br />Widespread deployment of automated diagnostic tools will streamline EM&V and enable continuous commissioning.<br />“In the future, demand response, energy efficiency, operational improvements and distributed generation may be combined to a single integrated offering with performance tracking to increase persistence.” *<br />* Wiring the Smart Grid for Energy Savings: Mechanism and Policy Considerations – Hannah Friedman & PriyaSreedharan<br />

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