This document summarizes a presentation on challenges reviewing and inspecting demand response programs in New York. It provides background on NYSERDA's Peak Load Reduction Program and the roles of consultants in reviewing project applications and inspecting installations. Key challenges discussed include verifying large lighting projects, establishing load profiles, coordinating demand response generators, and ensuring all stakeholders are clear on requirements. The presentation emphasizes the importance of communication, scrutiny of projects, and involving all parties.

1. Challenges in Review
and Post-Installation Inspections
of a Demand Response Program
prepared and presented by
Mark D’Antonio (ERS)
Co-Authors
Chris Smith (NYSERDA)
John Seryak, Gary Epstein (ERS)
ACEEE 2006 Summer Study
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2. Presentation Overview
Background
NYSERDA Peak Load Reduction Program Overview
Process Overview
Review and Inspection Challenges
Case Studies
Lessons Learned
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3. Background
NYSERDA – New York State Energy and Research
Development Authority
Operates the Peak Load Reduction Program
Summer Peak Reduction
Enabling Technologies
Supported by Systems Benefit Charge (SBC) Funding
NYISO - New York Independent Systems Operator
Administers Demand Response Programs
Incentivizes Actual Curtailments and Demand Response Actions
NYSERDA Consultants – competitively solicited group of
contractors that provide Quality Assurance services for
NYSERDA’s program (ERS’ region – NYC)
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4. NYSERDA’s Peak Load Reduction Program
PON 955
Permanent Demand Reduction (PDR)
Electric Technologies – Lighting, Chillers, Motors….
Steam Retention (Avoided Electric Load) – Absorption Chillers, Steam Turbine
Driveline Chillers
Load Curtailment/Shifting (LC/S)
Enabling Controls for Curtailment
Load Shifting
Distributed Generation (DG,DR)
Distributed Generation
Demand Response (Generators)
Interval Meters (IM)
PSC Approved - Revenue Grade
NYISO Compliant – Shadow Meter
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5. NYSERDA’s Peak Load Reduction Program
PDR
Con
Edison
Service
Territory
$500/kW
Electric
$425/kW
Steam Ret
NonCon
Edison
Service
Territory
$225/kW
LC/S
Con
Edison
Service
Territory
$200/kW
DG
IM
NonCon
Edison
Service
Territory
Con Edison
Service
Territory only
Statewide
$45/kW
$120/kW exist
DR
$160/kWnew DR
$400/kW DG
$1,500/meter
NYISO Compliant
$2,000/meter
PSC Approved
1. Contractors will be reimbursed the lesser of 65% of the Eligible Project Costs or the
incentive caps set forth in Table 1. The Facility owner/operator must contribute no less
than 35% of Eligible Project Costs. Facility cap of $750,000. Contractor cap of $2 Million
2. Incentive of $100,000 provided to aggregators who provide greater than 10 MW of
verified load curtailment in ConEd territory
3.Super Efficient Chillers eligible for additional incentives
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6. Enabling Technology Options
Energy Efficiency Technologies
Lighting, Motors, HVAC, VFDs, Industrial Equipment
Energy Management System Load Control
Smart Load Control Systems Metering Systems
Direct Load Control
Backup Generation
Distributed Generation
Load Shifting Technologies (Thermal Storage)
Avoided Load (Steam Drivelines/Chillers)
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7. Process Overview
Application
NYSERDA Reviews for Program Requirements (in house)
Encumber Funds, Issue PO to Applicant, Assign QA Consultant
Applicant Submits Technical Assessment (TA) to QA Consultant
TA documents analytical basis and equipment details for proposed Demand Reduction
QA Consultant Reviews TA
Technical Feasibility and Accuracy
Recommendation to NYSERDA ( Approval, Modified Approval, Disapprove)
NYSERDA Issues Notice to Proceed (for Approved Projects)
Installation
Post-Installation Inspection by QA Consultant
Final Approval Sent to NYSERDA
NYSERDA Processes Incentive
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8. QA Consultant Role
General Guidance
Respond to Applicant Questions About the Process
Technical Review of TA
Pre - Installation Site Visit (Optional)
Screen TA for Completeness
Analytical Review – Technical Content, Feasibility, Accuracy, Cost
Work with Applicant for Modifications
Approval Recommendation
Post-Installation Inspection
Verification of Equipment Actually Installed – qty, make/model, details, photos
Operability and Sequence of Operation – demonstrated performance
Final Approval
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9. Example Projects
PDR - Lighting
Commercial Retail - T12 to T8 Conversion, Incandescent to CFLs,
Delamping.
1,700 kW Peak Load, 26 kW Permanent Reduction, Approved Incentive =
$12,250
LC/S – EMS Load Shedding
Commercial Retail - HVAC Fan & Pump Control (VFDs)
8 MW Peak Load, 575 kW Load Curtailment, Approved Incentive =
$103,500
PDR – Steam Retention
Commercial Office Building – Steam Turbine Driveline Replacement
1,424 Peak Load, 649 kW Avoided, Approved Incentive = $308,275
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10. Example Projects - Continued
DG – Gas Fired Micro Turbine
Refrigerated Food – Three Natural Gas Micro Turbines
1,400 kW Peak Load, 180 kW DG, Approved Incentive = $49,500
DR – Diesel Generator
Food Manufacturing – Diesel Back Up/Demand Response Generator
1,300 kW Peak, 259 kW in DR, Approved Incentive = $32, 375
PDR – HVAC Modifications
Commercial Office High Rise – Install Premium Efficiency Motors and
VFDs on SAF,RAF and CT Fans
8,500 kW Peak, 329 kW in DR, Approved Incentive = $156,275
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11. Challenges
General
Many Players – Applicant, Building Owner, Building Operator, Contractor
(TA developer), CSP, NYISO, ConEd, Department of Environmental
Conservation (DEC)
Often Chasing Information
Unethical Practices?
Overly Aggressive Reductions
Unscrupulous Business Practices
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12. Challenges - Continued
Analytical
Numerous Technologies – EE, Controls, DG, Generators, Meters
Proprietary Information? (Obtaining Performance Data, Custom Spreadsheets - QA
Consultant viewed as a competitor that will gain competitive advantage)
Inadequate Information in TA’s
Lack of Analytical Capabilities of Project Developers
Inspection
Access Issues (Inaccessible locations, Inaccessible Equipment, Inaccessible
People)
Incomplete Projects – “Well it is almost done - perhaps I could get my incentive…..”
Unwilling to Demonstrate Operation (ex: transfer Building Load to DR Generators)
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13. Challenges – More Specifically
Verifying Large Lighting Projects
Restricted Access – locked rooms
Sampling
Establishing Load Profiles
Modeling vs. Logs vs. Monitoring
VFDs – now for Curtailment only (PON 955)
DR Generators
Facility Owner wants NYSERDA $, but often doesn’t understand NYISO – Vendor
just wants to sell generator – Need CSP coordination
Permitting Documentation can be delayed
NYISO Registration Confirmation
Verification of Load Transfer (Interval Data)
Distributed Generation
Establishing Actual Operational Parameters (Run-time, Loading)
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14. Case Study – 1585 Broadway
•Morgan Stanley
•42 Floors – 1.4 Million SF
•8,500 MW Peak Load
•VFDs on Variable Pitch SAF, RAF
•PE Motors and VFDs on CT Fans
•Property Mgt – Applicant
•Technical Contractor – develop TA
•Installation Contractor(s)
•Separate Controls Contractor
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15. Case Study – Challenges
•Proprietary Analysis
•Did Not Install PE Motors
•Communications Issues – not all
VFDs working (finger pointing)
•Control Algorithms Somewhat
Different than Proposed
•Modified “Final” Approval
•2nd Site Inspection Requested by
Applicant After Recalibration
•EMS Trending
•Modified “Final Final” Approval
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16. Lessons Learned
Communicate, Communicate, Communicate
Assume Nothing
Explain Everything
Involve All Stakeholders
Make Sure all Parties are Clear on Process, Deliverables and Requirements
Document Correspondences and Keep All Parties Informed
Program Managers as Mediators
Clarifying Program Decisions are Needed Occasionally from NYSERDA Program
Managers
Diligent (but respectful) Scrutiny is Required
Verification – Did the right stuff get installed?
Ethical Practice
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17. Further Information
PON 955 - On Web Downloadable at:
www.nyserda.org/funding
NYSERDA: 1-866-NYSERDA (697-3732)
Chris Smith ext 3360
Energy & Resource Solutions (ERS)
Mark D’Antonio 212-789-8182 ext 251
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18. Questions?
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19. Intentionally Left Blank
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20. Direct Load Control
Traditionally Focused on Residential Sector
DHW, Pool Pumps, AC
Many New Approaches for C&I Sector
Central Control of Multi-Facility Customers
Remote EMS Control of Sites with Pre-programmed curtailment
strategies
36 locations
(4.4MW)
21 locations
(1 MW)
16 locations (0.8 MW)
Programmable, Direct Load Control Thermostats
Direct Load Control Switches: AC, Electric Heat,
Etc.
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21. Distributed Generation Technologies
Backup Generation Systems
Assessment of Load Applicability During Curtailment is Critical
Environmental Requirements are Similarly Critical
Diesel Generators
Steam Turbine DG
MicroTurbine Systems
Renewable Technologies
Fuel Cells
Photovoltaics
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22. Central and Focused Energy Management Systems
for Demand Control
Local Scheduling Controllers
Typically Address HVAC and Lighting
Many Energy Management Systems have Demand Control
Features
Programmed Scheduling
Demand Limiting
Duty Cycling
Generally, EMS Systems Schedule (Turn Off) Predetermined
Groups of Equipment
Challenges or Limitations
Demand Control Can Conflict with Control Rules
Rules Based Logic Can Limit Certain Demand Control Effectiveness
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23. Smart Demand Control with kW Forecasting
Systems are Dedicated to Demand Control
Do Not Have Standard BAS or EMS Functionality
Continually Monitor Facility kW
Single or Multiple Meters
Smart Algorithm Continually Forecasts Average kW
During Specified Period (e.g.: 15 or 30 minute period)
Smart Duty Cycling Routine is Used to Modulate or Turn
Off End Use Equipment to Avoid Reaching Threshold
kW Levels
Neural Net (AI) - Smart Building Automation System
that Progressively Learns Best Operation of
Building Systems
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24. Demand Control with Lighting Technologies
kW Impacts with Lighting Efficiency Technologies
and Occupancy Sensors
Scheduling with Lighting Control Panels
Direct Addressable Lighting Systems (DALI, etc.)
Multi-Level and Continuous Dimming Systems
Load Shedding Ballasts
Power Reducing or Current Limiting Devices ???
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25. Load Shifting/Fuel Switching Technologies
Load Shifting
Thermal Storage
Off-Peak Operations for Industrial Facilities
Fuel Switching Technologies
Absorption Chillers
Steam Turbine Chillers
Engine-Driven Chillers
Engine-Driven Compressors
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