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Households are happy to join together and provide power flexibility for climate action

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Residential and small commercial electricity consumers will provide most of the flexibility needed in the power system to achieve the energy transition at lower cost. This flexibility will allow the electricity grid to take on more renewables and need less grid reinforcements. Consumers are happy to participate (>75% opt-in rate) via an aggregator and be rewarded with energy savings reducing their electricity. Because it reduces the overall costs of running the energy system, it means that all consumers benefit from lower energy prices. The business case is now proven as more and more countries worldwide ensure demand side response can participate in wholesale markets as an alternative to generation and the EU has provided support through its recent Clean Energy Package. Pierre Bivas from Voltalis will share his experience of operating flexibility from more than 100,000 households in France, and now installing another 150,000, backed by the European Investment Bank, while also developing in other countries with local partners.

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Households are happy to join together and provide power flexibility for climate action

  1. 1. Demand side response today for tomorrow Households are happy to join together and provide power flexibility for climate action June 11th, 2020 1
  2. 2. Immense Energy Challenges for the Years to Come New energy needs (EV…) Stand-alone IoT with risk of synchronous patterns Growth of intermittent renewables Traditional solution: increase SUPPLY Oversized thermal plants & grids Pollution and climate change Our approach: Manage Demand in Real Time as Accurately as Generation Internet of Energy 2
  3. 3. X-IoE™ Aggregation Platform Optimization for both the end-consumers and the electricity grid, at any scale (time/geography) StorageHeaters Water Boilers Electric Cars Aircon s Distributed Loads Distributed Generation Distributed Storage Utilities … Dispatch Services & Savings End-Users Competitive & Customer-centric retail offer Competitive solution to manage the electric system 3 HVACs Rooftops
  4. 4. Voltalis: Flexibility Aggregation for (Sm)all Consumers #1 operator of Internet of Energy (IoE), with a proprietary technology for aggregation and optimization of widespread flows of energy, both for end-users and for electric systems • The only platform for residential demand control (DC) officially certified by a TSO in Europe (since 2008) and now active daily in wholesale energy markets • Protected by 12 international patents • 11 years of R&D – 9 years of daily operation ü 100,000+ boxes in homes and C&I sites (offices, supermarkets…) ü Close to 1 million connected appliances ü 1 billion data collected / processed in real time everyday ü 4+ billion individual shedding orders since beginning ü 200+ billion entries in the database ü Recent support from EIB to install another 150,000 consumers ü Now in France + several countries in the EU countries and beyond 4 The Only Residential Demand Control Operator at such Scale
  5. 5. Solution seen from consumers 511-Jun.-2020 Users TCP 9
  6. 6. On Site Connection to Various Loads » Open to many end-devices BLUEPOD (gateway & “mini PC”) SMARTSWITCH (4 submeters & relays) C&I INSTALLATIONS HVACs Rooftops Back-up generators Chillers RESIDENTIAL APPLIANCES Electric heaters Boilers ACs Thermostats Home Energy Management Systems Building Management Systems Local Hardware… … open to many types of end-devices EV Solar Roofs Storage … PLC, Z-Wave, Zigbee, Wifi, Modbus… Remote upgrades for new services Sensors 6 NEW APPLIANCES
  7. 7. Alerts Virtual Smart Thermostat Home Power Balancer Heat up only if at home Price Plans TOU Monitoring – Comparison - Advice A full Home Energy Management System for Smart Homes / Smart Buildings 7
  8. 8. For Free Eco Friendly - Significant CO2 emission reduction thanks to avoided generation - Zero waste, Zero emission, Zero risk Solidarity - Benefits for the grid - Reduced risk of blackouts Friendly Interface Same Comfort - Adaptive and precise cycling strategy - 5 year experience with excellent satisfaction rates For the consumers: Savings & Services, for FREE » Cost savings (with same comfort) Up to 15% Savings … and more services 8
  9. 9. For C&I: a Virtual BMS ∥Friendly web interface with access right management (for multi-site groups) Examples of Features ü Data detailed per appliance ü Real time consumption ü Aggregation of a given areas (portfolio management) ü Comparisons between sites/groups of sites ü Comparisons in time ü Alerts (email, SMS…) ü Malfunction auto-detection ü Scheduling / Clocks ü … » Web interface for technical teams 9
  10. 10. Solution seen at grid level 1011-Jun.-2020 Users TCP 9
  11. 11. Macro-Aggregation of Micro-Flexibilities » Covers the needs of the grid and markets on any time scale 11 Individual sites Voltalis X- IoE™ Platform MWh Hz …X millions of sites Aggregated result on millions of appliances Examples MW HOURS MW HOURS Dispatchable Alleviates grid const.Zero emissionAvailable Precise MW Within minutes Within seconds
  12. 12. Solution: Internet of Energy Technology • For participating consumers • Easy, plug and play • Free of charge • Energy savings and services • For the system • Aggregation of millions of appliances under real time control • Reliable + accurate • For all consumers : Avoid costs + better integrate renewables 12 SMARTBOX Real time communication + Measure & Act PLATFORM ALGORITHMS • Responsive • Global + Local • Machine Learning 11-Jun.-2020 Users TCP 9
  13. 13. ∥ Avoids some grid reinforcements that only covers a few hours/year “Non-wire investment” for DSOs » Aggregation at any Scale: Country, Region, City, Block of Houses… Country ∥ Aggregation can be managed with geographical constraints 13
  14. 14. Complementary to (Smart)Meters More flexibility than via price signals Ø Voltalis X-IoETM is operated « beyond the meter », and doesn’t compete with DSO (smart) meters, but provides complementary services, both for end-users and grid operators SMART METERS Metering Overall metering, only Sub-metering of each appliance connected (each heater, heat pump, water boiler, aircon…) Communication Differed, once a day Real-time Frequent (every few minutes/seconds) Action on home appliances Not directly (but can send price signals to other devices - such as Voltalis box - that will act on appliances) Real-time modification of the consumption (or settings) of each appliance Aggregation of micro-shedding No Yes, in real time, with specific algorithms Example of Voltalis practical applications: Reshaping of water boilers load curve 22:30 22:50 23:10 23:30 23:50 0:10 0:30 0:50 1:10 1:30 1:50 2:10 2:30 2:50 3:10 3:30 3:50 4:10 4:30 4:50 5:10 5:30 5:50 water boilers : load carving 21/3 22/3 Voltalis operation on 3,000 water boilers Based on Machine Learning, water boiler consumption can be spread within low-tariff hours in a more efficient way than through Price Signals Reference with water boilers based on price signal: all start at the same time, creating an artificial peak Example of a dynamic reshaping managed by Voltalis that divides the peak by 2 1 1 2 2 The load curve can also be managed according to external constraints, such as instant renewable production, national balancing needs, etc. 14
  15. 15. 15 X-IoETM Aggregation Algorithm ü Real time ü 2-way communication ü Secured ü Automated & & & Services to the grid Substitute to thermal plant Renewable firming Peak demand management Congestion management Frequency regulation Reserves (security in case of system collapse) Voltalis’ X-IoE Internet of Energy: Integrated and Modular A new approach to demand side participation and savings Services to consumers Photovoltaic self- consumption EV / Storage management Home energy management and apps Alerts, comparison and advice Remote control Virtual thermostatDynamic pricing Savings EV Photovoltaic Storage SensorsElectric heaters ACs ThermostatsBoilers Smartbox
  16. 16. Worldwide Potential 1611-Jun.-2020 Users TCP 9
  17. 17. International Development 17 ∥Partnerships with various kind of actors • TSO/DSO • Suppliers • Manufacturers • Landlords / real estate Cies • Commercial sites • Cities (communication to population & public buildings)
  18. 18. A worldwide potential – A worldwide need Selected examples Selected examples USA 93% of HH with aircon 14 GW of DR Nordics 3.5 million households with elec. heating Canada 2 million HH with elec. heating 8 million HH with aircon France 7 million households with elec. heating China Need for +1,000 GW of capacity in the next 25 years Japan Aircon = 50% of national peak of residential sector Saudi Arabia 5m HH with aircon, Aircon = 75% of the peak of the country +60GW of capacity needed Australia 4 million households with aircon Indonesia +10m aircon units sold per year Need for +18GW of new capacity by 2025 Singapore 70% of households and most of commercial sites have aircon UK 2 million households with elec. heating South Korea 80% of HH have aircon 4GW of industrial DR 18
  19. 19. E.g. Potential in Greater Tokyo Area ∥Air conditioning = half of residential consumption during peak hours A potential of c. 9 GW for Demand Control in Households 19
  20. 20. Duck Curve due to PV in California ∥As seen by CAISO in 2012 for 2020: huge swings, and more to come 20
  21. 21. The international common clue to DR participation in the market: net benefits 2111-Jun.-2020 Users TCP 9
  22. 22. Selling DR on Energy Markets to Avoid High Prices and Save for All Wholesale price (P) Cons. (Q) Reduction of wholesale prices = financial benefit for retailers Reduction of consumption = “cost” for retailers Q x dP P x dQ 22
  23. 23. Example 23 Demand Reduction benefits all retailers by avoiding high market prices Request from retailers 60 000 MWh Market price without DR 70 €/MWh DR offered in the market 100 MWh Other bids = generation 59 900 MWh Leading to a market price reduced to 68 €/MWh Windfall profit for retailers (70 – 68) * 60. 000 = 120 k€ Cost for retailers: Volume of DR bought without selling to consumers 100 MWh Price paid for DR = market price 68 €/MWh Cost for retailers 6.8 k€ Benefit / cost ratio 120 / 6.8 = x 18 11-Jun.-2020 Users TCP 9
  24. 24. DR in European markets: benefits >> 10 x costs 24 Benefits from market-based DR: reduce sourcing costs for retailers 450 GWh/mkt = 1.6 G€/y benefits for retailers Source: The Regulatory Assistance Project 11-Jun.-2020 Users TCP 9
  25. 25. Net benefits and worldwide implementation ∥USA Ø FERC Order 745 (March 15th, 2011), as of 2012 Ø DR to participate in all organised electricity wholesale markets… Ø … as soon as market price above a threshold, ensuring net benefits > 0 Ø Threshold price monthly published since 2012 by PJM and others Ø Disliked by generators (EPSA) but backed by Supreme Court (Jan. 25th, 2016) ∥Singapore Ø EMA’s final determination Implementing Demand Response Programme in the National Electricity Market of Singapore, 28 Oct 2013, later updated (2016, etc.) Ø + IL: interruptible load (ancillary services) Ø Initially limited to (large) « contestable consumers » Ø Principle • DR is paid 1/3 of overall market benefits • Hence market parties capture 2/3 = net benefits ∥EU Ø Clean energy package / Electricity Market Design / Directive (EU) 2019 / 944 Ø DR accepted in all electricity markets: wholesale markets and ancillary services to TSOs/DSOs Ø Net benefit rule: DR to contribute to a ‘compensation to suppliers’ (if any) only if overall benefits do not exceed cost Þ Always a net benefit (or zero) for all suppliers, Þ To be eventually transferred to all consumers Þ Net benefits shared among all suppliers, hence all consumers 25
  26. 26. Generators TSOs DSOs Retailers Policy Makers Participating Consumers ü Manage intermittency of renewables ü Avoid costs, close inefficient power plants and better use other assets Benefits for all Consumers and all Stakeholders ü Reliable, cheap and fast means to balance grid and ensure reserves ü Demand control is available when demand is highest ü Overcome local congestions (“non- wire investment”) ü Manage grid in real time using Demand control and collected data ü Reduce sourcing costs and avoid risks of wholesale price volatility ü Innovative services and energy efficiency ü Energy savings (up to -15% on bill) ü Innovative services and energy efficiency ü Smart homes ü Energy transition: save energy, avoid CO2 emissions and use of fossil fuels, provide cheap and reliable flexibility to ease use of renewables ü Competition: Enhance consumers’ market power, innovative services ü Social: Reduce costs for all and finance smart homes for all volunteers All Consumers ü Cheaper electricity ü Enhanced reliability ü Greener power system, more climate-friendly 26
  27. 27. 27 Thank you! pierre.bivas@voltalis.com 11-Jun.-2020 Users TCP 9

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