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

ers
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solutions
© 2006 Energy & Resource Solutions, Inc.
Presentation Overview
Background
NYSERDA Peak Load Reduction Program Overview
Process Overview
Review and Inspection Challenges
Case Studies
Lessons Learned

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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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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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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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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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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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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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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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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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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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11
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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12
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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13
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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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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© 2006 Energy and Resource Solutions, Inc.

15
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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© 2006 Energy and Resource Solutions, Inc.

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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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© 2006 Energy and Resource Solutions, Inc.

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Questions?

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Intentionally Left Blank

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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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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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© 2006 Energy and Resource Solutions, Inc.

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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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22
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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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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© 2006 Energy and Resource Solutions, Inc.

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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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© 2006 Energy and Resource Solutions, Inc.

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Challengesindrpostinstallationpresentation

  • 1.
    Challenges in Review andPost-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 ers energy&resource solutions © 2006 Energy & Resource Solutions, Inc.
  • 2.
    Presentation Overview Background NYSERDA PeakLoad Reduction Program Overview Process Overview Review and Inspection Challenges Case Studies Lessons Learned ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 2
  • 3.
    Background NYSERDA – NewYork 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) ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 3
  • 4.
    NYSERDA’s Peak LoadReduction 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 4
  • 5.
    NYSERDA’s Peak LoadReduction 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 5
  • 6.
    Enabling Technology Options EnergyEfficiency 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) ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 6
  • 7.
    Process Overview Application NYSERDA Reviewsfor 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 7
  • 8.
    QA Consultant Role GeneralGuidance 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 8
  • 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 9
  • 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 10
  • 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 11
  • 12.
    Challenges - Continued Analytical NumerousTechnologies – 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) ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 12
  • 13.
    Challenges – MoreSpecifically 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) ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 13
  • 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 14
  • 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 15
  • 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 16
  • 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 17
  • 18.
    Questions? ers energy & resourcesolutions © 2006 Energy and Resource Solutions, Inc. 18
  • 19.
    Intentionally Left Blank ers energy& resource solutions © 2006 Energy and Resource Solutions, Inc. 19
  • 20.
    Direct Load Control TraditionallyFocused 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. ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 20
  • 21.
    Distributed Generation Technologies BackupGeneration 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 21
  • 22.
    Central and FocusedEnergy 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 22
  • 23.
    Smart Demand Controlwith 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 ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 23
  • 24.
    Demand Control withLighting 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 ??? ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 24
  • 25.
    Load Shifting/Fuel SwitchingTechnologies Load Shifting Thermal Storage Off-Peak Operations for Industrial Facilities Fuel Switching Technologies Absorption Chillers Steam Turbine Chillers Engine-Driven Chillers Engine-Driven Compressors ers energy & resource solutions © 2006 Energy and Resource Solutions, Inc. 25