This document discusses demand response and its role in improving electric grid reliability. It defines demand response and different types of demand response programs. It describes how demand response can provide ancillary services like regulation and spinning reserves to support normal and emergency grid operations. The document presents a case study of Alcoa providing regulation services and a case study of demand response helping to stabilize the Texas grid during a wind power shortage event.

1. Schneider Electric 1- Division - Name – Date
The Smart Grid:
Supply and Demand Side Equivalent Solutions
Phil Davis
Senior Manager, Demand Response Resource Center
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2. Schneider Electric 2/23
Objectives
Upon completion of this course, you will be able to:
●Define demand response
●Identify different types of demand response
●Describe which types of demand response are best for
different facilities
●Identify current trends in energy management and how they
impact daily use

3. Schneider Electric 3/23
Smart Grid = Supplier + End-use customers
●What’s changing?
●Greater regulatory pressure on utilities to improve energy
efficiency and meet Renewable Portfolio Standards
●Efficiencies in Grid Operations alone are not sufficient
●Grid capacity and integration issues continue to drive the
need for customer Demand Management solutions
●What’s required? A Collaborative Model between utilities
and their customers
●Utilities traditionally do not have a successful history in
meaningfully engaging end users

4. Schneider Electric 4- Division - Name – Date
What is “Demand Response”?
US Federal Position:
“It is the policy of the United States that time-based
pricing and other forms of demand response….shall be
encouraged, the deployment of such technology and
devices….shall be facilitated, and unnecessary barriers
to demand response participation in energy, capacity
and ancillary service markets shall be eliminated.”
– US Energy Policy Act of 2005, Sec. 1252(f)
US DOE Demand Response Definition:
Changes in electric usage by end-use customers from
their normal consumption patterns in response to
changes in the price of electricity over time, or to
incentive payments designed to induce lower electricity
use at times of high wholesale market prices or when
system reliability is jeopardized.

5. Schneider Electric 5- Division - Name – Date
What is “Demand Response” Really?
Demand Response is how we do that:
Everything about an (intentional) electron’s journey is shaped
by someone’s desire to accomplish a goal. Those goals are
determined by the vast community of electron users; i.e.,
customers. In that sense, everything a utility does is Demand
Response.
Electrons obey the laws of Physics:
They travel to ground over the paths of least
resistance. Our job is to get them to do a little work
along the way without wreaking havoc, which they like
to do.
Now is the time to re-design demand response to meet
societal and investor goals of efficiency and
environmental stewardship

6. Schneider Electric 6
●Summary
●Ancilliary Services – Normal and Contingency Conditions
●Load Response and Demand Response
●Matching the Loads and DR to the Reliability Service
●Case Study – Alcoa selling DR for Regulation Service
●Case Study – Texas Wind Event Uses DR for Spinning Reserves

7. Schneider Electric 7/23
Demand Response used in an electric
grid
● Demand Response programs have been designed and piloted to enhance the
reliability of the electric grid.
● This presentation will discuss the various mechanisms used in Demand
Response programs to enhance reliability, and will discuss two case studies –
one involving emergencies and one involving normal operations – in which
Demand Response has proven to improve grid reliability
● Demand Response, adapting
the consumption of electricity
based on control and price
signals sent to the consumer,
has successfully mitigated
high market prices in the
wholesale energy markets
Conventional Demand Response Programs
Reliability DR Programs

8. Schneider Electric 8/23
Energy Efficiency:
Longer Term Demand Response
Benefits of Demand Response in Electricity Markets – US DOE

9. Schneider Electric 9/23
Today, there’s a flavor of DR that
complements every variety of generation
Base load:
Coal and Nuclear
Variable Power:
Gas Turbine, CHP
Energy Efficiency,
Building Codes
Rebate driven
process improvements
(motors, metering, software, etc)
Programmable
Thermostats
Variable Pricing
TraditionalSupplyResources
TheVirtualPowerPlant
Peakers
Spi n Reserve
OpenADR
DLC

10. Schneider Electric 10/23
DR Project – RGDC in Manhattan
Commercial Building Facts:
• Owner: Rockefeller Group Development Corp.
• Location: 1221 6th Ave, Mid Manhattan NY
• Peak Load: 12.5+ MW
• Size: 50 stories plus 4 sub floors
• Tenants: Residential, Data Center, Restaurants, Commercial Offices
• Building Automation System – TAC Continuum
• DR – Originally enrolled 600KW in NYISO demand response
program
Project Goals:
• Reduce Operation Expenses
• Increase DR Capacity from 600KW to 900KW through improved
monitoring of energy systems and more reliable control strategies
• Apply strategy to other RGDC buildings throughout the US
Benefits Delivered:
• DR registration went from 600KW to 1.4MW
• Reduced KWHR (*approx $2M/yr)
• Reduced KW demand
• OWNER: Efficiency funding provided an upgraded BAS
Commercial Building Facts:
• Owner: Rockefeller Group Development Corp.
• Location: 1221 6th Ave, Mid Manhattan NY
• Peak Load: 12.5+ MW
• Size: 50 stories plus 4 sub floors
• Tenants: Residential, Data Center, Restaurants, Commercial Offices
• Building Automation System – TAC Continuum
• DR – Originally enrolled 600KW in NYISO demand response
program
Project Goals:
• Reduce Operation Expenses
• Increase DR Capacity from 600KW to 900KW through improved
monitoring of energy systems and more reliable control strategies
• Apply strategy to other RGDC buildings throughout the US
Benefits Delivered:
• DR registration went from 600KW to 1.4MW
• Reduced KWHR (*approx $2M/yr)
• Reduced KW demand
• OWNER: Efficiency funding provided an upgraded BAS

11. Schneider Electric 11/23
Results: 1221 Ave of the Americas
Largest LEED-EB in NYC
$575k annualized
savings
13.6% HVAC savings
5x payback on fees

12. Schneider Electric 12/23
5 Types of Load Response
Used for
Economic
Programs
Used for
Reliability
Programs

13. Schneider Electric 13/23
●Summary
●Ancilliary Services – Normal and Contingency Conditions
●Load Response and Demand Response
●Matching the Loads and DR to the Reliability Service
●Case Study – Alcoa selling DR for Regulation Service
●Case Study – Texas Wind Event Uses DR for Spinning Reserves

14. Schneider Electric 14/23
Types of Ancillary Services in use today
(resources used for grid reliability)
Emergency Operations
● Replacement Reserve
● Non-spinning Reserve
● Spinning Reserve
Normal Operations
● Load Following
● Regulation
● Voltage Control

15. Schneider Electric 15/23
Ancillary Services which DR can supply
(resources used for grid reliability)
Emergency Conditions
● Spinning Reserve - Online generation, synchronized to the grid, that can
increase output immediately in response to a major generator or transmission
outage and can reach full output within 10 min to comply with NERC’s
Disturbance Control Standard (DCS)
Normal Conditions
● Regulating Reserve - Online resources, on automatic generation control, that
can respond rapidly to system-operator requests for up and down movements;
used to track the minute-to-minute fluctuations in system load and to correct for
unintended fluctuations in generator output to comply with Control Performance
Standards (CPSs) 1 and 2 (or CPM and BAAL) of the North American Electric
Reliability Corporation (NERC 2008)

16. Schneider Electric 16/23
●Summary
●Ancilliary Services – Normal and Contingency Conditions
●Load Response and Demand Response
●Matching the Loads and DR to the Reliability Service
●Case Study – Alcoa selling DR for Regulation Service
●Case Study – Texas Wind Event Uses DR for Spinning Reserves

17. Schneider Electric 17/23
Types of Demand Response

18. Schneider Electric 18/23
●Summary
●Ancilliary Services – Normal and Contingency Conditions
●Load Response and Demand Response
●Matching the Loads and DR to the Reliability Service
●Case Study – Alcoa selling DR for Regulation Service
●Case Study – Texas Wind Event Uses DR for Spinning Reserves

19. Schneider Electric 19/23
Matching Load Types to Reliability
Needs
Load Types Reliability Need
●Residential Air Conditioning
●Water System Pumps Spinning Reserve
●Oil Well Injection Pumps
●Aluminum Smelters
●Other Chemical Processes Regulating Reserve
●Electric Vehicle Charging Stations

20. Schneider Electric 20/23
●Summary
●Ancilliary Services – Normal and Contingency Conditions
●Load Response and Demand Response
●Matching the Loads and DR to the Reliability Service
●Case Study – Alcoa selling DR for Regulation Service
●Case Study – Texas Wind Event Uses DR for Spinning Reserves

21. Schneider Electric 21/23
Case Study
Alcoa selling Regulation Response
How Does
Regulation
Response Work?
●The control center
issues commands
to raise or lower
generation or load
to match them up
in near-real time

22. Schneider Electric 22/23
Alcoa Necessary Measurement, Control
and Communications to accomplish
Regulation Response

23. Schneider Electric 23/23
Alcoa Results

24. Schneider Electric 24/23
●Summary
●Ancilliary Services – Normal and Contingency Conditions
●Load Response and Demand Response
●Matching the Loads and DR to the Reliability Service
●Case Study – Alcoa selling DR for Regulation Service
●Case Study – Texas Wind Event Uses DR for Spinning Reserves

25. Schneider Electric 25/23
Texas has more wind power than any
other state

26. Schneider Electric 26/23
ERCOT – Emergency Response Service
ERCOT contracts with end users to “buy” control of some loads
● Load must be “sheddable” within 10 minutes
● Generally loads not critical to a process including water pumping and oil well
secondary injection pumps
● Loads are “paired” with generation from wind so that a MW of load “backs
up” a MW of wind generation
Renewables (solar and wind) are inherently unreliable
● At 2 - 3% of a utility portfolio, this can be hidden, but
● At 8 – 10% of a utility portfolio this must be addressed in the case of loss of
generation, or else instability and a blackout is a possibility

27. Schneider Electric 27/23
Wind Event: Feb. 26, 2008 (3pm to 9 pm)
• Wind output was significantly below updated (hour-ahead) wind resource
plans

28. Schneider Electric 28/23
Wind Event: Feb. 26, 2008 (3pm to 9 pm)
• Load increased by 2000 MW between 5:30 and 6:45 pm (evening peak)

29. Schneider Electric 29/23
Wind Event: Feb. 26, 2008 (3pm to 9 pm)
• ‘It appears to be the deployment of LaaRs (now called ERS) which halted
frequency decline and restored ERCOT to stable operation.’ --
ERCOT EECP Event Report

30. Schneider Electric 30/23
Demand Response used in an electric
grid
● Demand Response programs have been designed and piloted to enhance the
reliability of the electric grid.
● This presentation will discuss the various mechanisms used in Demand
Response programs to enhance reliability, and will discuss two case studies –
one involving emergencies and one involving normal operations – in which
Demand Response has proven to improve grid reliability
● Demand Response, adapting
the consumption of electricity
based on control and price
signals sent to the consumer,
has successfully mitigated
high market prices in the
wholesale energy markets
Conventional Demand Response Programs
Reliability DR Programs

31. Schneider Electric 31/23
Thank you!