Demand response by means of Smart grid

1. Dr. Yuval Beck Demand response by means of Smart grid

2. SEEEI Jerusalem 24/10/2013 www.hit.ac.il/sites/energy-center‎

3. “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” Federal Energy Regulatory Commission SEEEI Jerusalem 24/10/2013 DR- Definition

4. Smart metering implementation and the suplier Regulatory Support End user response and acceptance SEEEI Jerusalem 24/10/2013 outline

5. SEEEI Jerusalem 24/10/2013 Smart Metering Implementation

6. Measurement of consumption and production (when applicable) • Remote steady reading by demand. • Tariff, historic consumption, comparative parameters display. • Measurements or load behavior graph storage (next demand, communication failure) • Remote connection/disconnection and load limiting. • Remote firmware upgrades • Transmit of Power quality report by standards (IEC 60150 and more) • Communication abilities with other meters, communication concentrator, other devices and appliances. • Prepay ability (when applicable) • Self display and transfer of meter data to external display such as ipad, tablet, home display. SEEEI Jerusalem 24/10/2013 Functionality of smart meters based on various pilots

7. Dynamic pricing – by detailed information of consumers energy consumption. • Personalize tariffs. • Demand response services- knowledge on consumption leads to energy conservation. • Remote updating meters in minimum time- fast network adjustments. • Accurate data leads to less complaints by consumers-> efficient and cost effective service centers. • Record management efficiency- producers pay by actual client consumption and not by estimated load profiles. SEEEI Jerusalem 24/10/2013 Potential benefits for producers

8. Better data on consumers which leads to better service and various services. • Efficiency in distribution system operation. • Fault detection by meters for higher reliability. • SMS/Radio/Internet communication with customer for announcements (maintenance, faults etc..)- can be bidirectional. • Fast recovery time • Losses and electricity theft recognition- (in Sweden and Italy acted as main incentive for smart meters implementation). • Phase frequency and voltage monitoring for stability improvement • Better management of network assets. • Smarter investments. • Third party interface for DR services (acceptance, regularory, privacy, security issues) SEEEI Jerusalem 24/10/2013 Potential benefits for DSO

9. MUC-Multi Utility Communication - Controller SEEEI Jerusalem 24/10/2013 Other benefits

10. SEEEI Jerusalem 24/10/2013 SECTURITY and privacy

11. SEEEI Jerusalem 24/10/2013

12. SEEEI Jerusalem 24/10/2013 Regulatory Support

13. For smart and safe implementation of Smart Grid, it must be economical for the consumer as well as the DSO and TSO (Same in Israel). Enabling that while protecting privacy, and consideration in energy efficiency, requires adjusting and new regulation by the state. These regulations contribute to a healthy framework in this field. SEEEI Jerusalem 24/10/2013 Regulation purpose

14. Enabling energy providers to make profit from additional “smart” energy services. (energy efficiency consulting, applications, etc.)- not dependent only on KWh sales. • Allow contracts for appliances and load automatic disconnection- usually by financial incentive • Return of investment policy- such as infrastructure by fixed price in the bill and for the meter and additional equipment by energy price. • Exclusive ownership of the consumer data by the consumer- can give permission to third parties. • Implementing smart metering at all consumers for maximizing the system’s abilities. • Standardization for smart metering , the communication and the topology • Net metering- for prosumers. • Aggregation of demand- for flat consumption • Creation and supporting new programs and products • Give incentives to energy and infrastructure SEEEI Jerusalem 24/10/2013 Government regulation needs to support

15. 215 programs from 2006-2008 for energy efficiency • 2 Billion$, 1685MW and 7367MWh reduction+ no need for two 500MW generation units. • 75 million$ reward to the electric company for energy reduction. • 2010-2012 investments of 3.1 billion$ for reduction of 7000GWh and cutting 3 500MW generation units. SEEEI Jerusalem 24/10/2013 Regulatory examples in the USA California

16. Separation between the income from infrastructure to sales profits- enabling the insertion of new generation companies with clients. • 120 million $ for financing DR programs • Green Communities Act- the separation law between infrastructure and energy provider (by 2012) • Public education programs in DR and energy efficiency and collaborating with the University of Massachusetts in a experimental educational program. • Financial incentive for reduction of peak load and the average consumption by 5% • energy pay and save program which enables consumers to buy energy efficient appliances and pay to the infrastructure company in payments in their bill. SEEEI Jerusalem 24/10/2013 Massachusetts

17. separation between infrastructure and energy provider • Incentives to reliable and secure infrastructures and fines when they are not. • Over 1500 energy reduction projects for over 1 billion $ - 946GWh reduction. (schools, government buildings, public buildings…) SEEEI Jerusalem 24/10/2013 New York

18. אין חיוב מטעם המדינה להתקין מונה חכם. • מצד שני, עידוד חברות התשתית להטמיע אותן ולהחזיר את ההשקעה בחיוב קבוע בחשבון הלקוחות. • דוגמה: חברה אחת חתמה על הסכם להתקנת 3 מיליון מונים חכמים באזור צפון טקסס עד שנת 2012, כאשר לקוחות ביתיים משלמים 2.35 דולר לחודש במשך 11 שנים על מנת להחזיר את ההשקעה בהתקנה. • דוגמה: חברה הפועלת ביוסטון התקינה 145000 מונים חכמים בשנת 2009, עוד 500000 יחידות ב-2010, ועתידה להגיע ל-2.2 מיליון יחידות בסיום ההתקנות. התקנה זו מוערכת בכ-640 מיליון דולר. על מנת להחזיר את ההשקעה, הלקוחות משלמים 3.24 דולר לחודש בשנתיים הראשונות, ולאחר מכן 3.05 דולר לחודש במשך 10 השנים העוקבות. הסכום הכולל שמשלם כל לקוח במשך 12 השנים הוא 443.76 דולר. SEEEI Jerusalem 24/10/2013 Texas

19. SEEEI Jerusalem 24/10/2013 End User Response and acceptance

20. What are the new services for the consumer Is the consumer interested in these services (what benefits will he get?) Is the demand (consumers) response will change its consumption habits ? SEEEI Jerusalem 24/10/2013 Questions to be asked before smart grid is implemented (the consumer side)

21. Mainly due to misunderstanding. • Science fiction- robots control humans • Privacy and security Why are people skeptic?

22. Make sure that consumers can benefit from the cost savings enabled by the smart grid in a fair and appropriate manner. • Government should take ultimate responsibility for ensuring that the smart grid is secure. Honesty and transparency are key and consumer engagement is important to manage consumer concerns. • Consumers must be able to make informed choices and have meaningful control over their data and its use. • Research on consumer behavior in Smart Grid (pilots) • Public education SEEEI Jerusalem 24/10/2013 Recommendations for happy consumers

23. SEEEI Jerusalem 24/10/2013