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Task Status Report

Task Status Report. Micro Demand Response and Energy Saving Richard Formby/John Baker Proposed Operating Agents April 2008. Summary Introduction Task Aims and Objectives Objectives for the last six months Progress against Objectives Objectives for the next six months

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Task Status Report

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  1. Task Status Report Micro Demand Response and Energy Saving Richard Formby/John Baker Proposed Operating Agents April 2008

  2. Summary • Introduction • Task Aims and Objectives • Objectives for the last six months • Progress against Objectives • Objectives for the next six months • Finance • Experts’ Meetings • Matters for the EXCO TSR Contents

  3. Background Up to 40% of electricity is used by smaller customers Saving energy/CO2 is major objective of governments Smaller customers need mechanisms to save energy 3 ways customers can save electricity - reducing use - shifting use - bidding demand change Maintain system security

  4. EU Perspective EU Directive on Metering and End Use Information for Customers 2012 targets

  5. Major Issues How can commercially viable Demand Response and E-services be provided What is business model for SME and Residential Customers

  6. EUMF Feedback end use information,cost and CO2 (displays) Demand disaggregation - very “smart” metering - modelling (interview data+real time disaggregation and feedback) 10% savings estimate Put national disaggregation data on bills now

  7. Fixed TOU Pricing Fixed times and rates - saves energy and CO2 Manual/automatic/remote demand shift to lower price times - communication enabled TOU meter to switch end uses (not really “smart” metering) - “smart” end uses - slightly “smart” metering for profiles development data collection

  8. Dynamic TOU/Critical Pricing DR participating in system operation - automatic/remote switching (24 hrs) - communication enabled end uses - meter not really “smart”, 2 rate? - saves energy and CO2 Meter provides information to help customers reduce demand? - very “smart” meter Impacts profile settlements

  9. Demand Side Bidding DSB is validated Dynamic DR - saves energy and CO2 Contracted DR to System Operator Motivated by price and payment High price dissuades customer override (TOU meter plus comms to end uses) Validation of “available”/“turndown” need Validation by modelling DR or “smart” remote metering

  10. EXCO in Brugge Decisions EXCO supported Concept paper EXCO interested in early Task results Smart metering implications to be included Hold TDM and develop Task Deliver Task proposal at Exco in India and seek support

  11. Interested Countries/Organisations 11 Parties: Australia Austria Belgium Denmark Finland France Japan Netherlands Spain UK Schneider Electric

  12. Objectives for last 6 months • Hold Task Definition Meeting • Develop the Concept Paper into a Task or Subtask proposal • Present the new Task proposal to EXCO in April 08 to solicit country/ organisation support

  13. Task Definition Meeting Held 23/24 Jan 2008 Finland, Netherlands, Spain and UK participated Keynote Speakers National Grid UK Defra UK

  14. Results of TDM 6 Subtasks developed Task not Subtask (proposed Task XIX) DR/E-saving products definition to be included Submit proposal to EXCO

  15. Objectives for next 6 months • Finalise support and funding for the new Task XIX • Start the Task and commence work on Subtasks • Hold one Experts’ Meeting and Workshop (Brainstorming Session) to collect country information and ideas on subtasks

  16. Matters for the EXCO New Task XIX Proposal Vote Required to determine country/ organisation participation

  17. Proposed New Task XIX Micro Demand Response and Energy Saving

  18. Objectives of New Task • Define DR and E-saving products for System Operators, Suppliers, Governments and Customers • Identify and develop DR and E-saving service delivery mechanisms based on EUMF and TOU pricing and Demand Control

  19. Objectives of new Task • Assess shared smart metering infrastructure • Estimate costs of product delivery systems • Evaluate how DAG/ESSP businesses can provide DR and E-saving services for Residential and SME Customers • Quantify the business case for providing DR and E-saving products

  20. Energy Saving and Metering EUMF - potential 10% E saving - very “smart” metering/interviews Tariff TOU-E savings + system security - simple meter, “smart” end uses Dynamic TOU-E savings + system security - simple meter, “smart” end uses DSB-E savings + system security - simple meter, “smart” end uses - validation by modelling or remote TOU metering

  21. Parties interested in EUMF, TOU pricing and DR energy services System Operators - peak demand reduction - wind valley filling - contingency management Suppliers - contract balancing

  22. Parties interested in EUMF, TOU pricing and DR energy services Customers - save money - help environment Governments - save energy - help environment - maintain supply security

  23. Parties interested in EUMF, TOU pricing and DR energy services Demand aggregators/ESSP - understand customers, suppliers, system operators - understands marketing/promotion - understands business case/investment - independent

  24. ESSP/DAG Business • Face to Face Energy Advisor – Modelling • Advise on DR Enabled End Uses • Recruit/aggregate DR customers - End Uses • Micro Generation advice/promotion/ management • End Use Remote Diagnostics/Leasing • Advise on Tariffs • Negotiate accreditation for E-savings

  25. ESSP/DAG Business • Manage DR payments/Customer/SO/Supplier • Finance/install DR/E-saving control/ communication infrastructure

  26. Task XIX Work Package 1(DR service products) Define parameters required for DR and E-services for SO, Suppliers, System Responsible, Customers

  27. DR/E-service Products System Emergency Reserve Consumption reduced/restored in half hour 1000 hrs per year 5 times per day

  28. DR/E-service Products Reserve for wind deviation Reduce consumption in night valley 1 hour notice 1000 hrs per year Once per day Customer behaviour change EUMF Information

  29. Task XIX Work Package 2(End Use Demand Changes) • Identify specific end use demands for DR/E-service business • Identify what DR/E-service may be possible by SME end-uses • Identify what DR/E-service may be possible by residential end-uses • Determine architectures for aggregating and delivering DR/E-service • Estimate “Demand Available”?

  30. Potential SME Customer Sectors • Education • Wholesale/Retail • Manufacturing • Financial/Business Services • Health and Social • Government • Community

  31. Carbon Savings by Service Type

  32. Task XIX Work Package 3(Delivery Mechanisms) • Define “smart” mechanisms for motivating and delivering DR/E-service by residential and SME customers (EUMF, TOU, remote switching, DR) • Evaluate Energy Advisor role to deliver EUMF energy savings

  33. How to Deliver 1KWh Saving Information Feedback Energy Audits Energy Advisor Marketing Behaviour Change Energy Price

  34. How to deliver 1 KW of DR CELECT- in-house communications Intelligent plugs Manual/Auto Demand Changes Smart Metering (TOU Pricing etc) Validation of Demand Changes Customer override?

  35. What technology is available In-house communications Out-house communications Communication enabled end uses Communication enabled thermostats Smart metering Disaggregation Models

  36. Task XIX Work Package 4(SME Costs/Benefits) • Determine ESSP/DAG costs and benefits for SME customer energy saving services • Determine ESSP/DAG implementation methodologies and route for viable SME service businesses • Investigate accreditation possibilities for DR/E-saving measures (White Certificates, EEC/CERT)

  37. SME Costs/Benefits Benefit of 1KW of DR Duration of 1KW of DR Cost of Delivery of 1KW of DR How does ESSP/DAG get paid? Who invests in DR Infrastructure?

  38. Task XIX Work Package 5(Residential Costs/Benefits) • Determine ESSP/DAG costs and benefits for delivering residential customer DR/E-saving services • Determine ESSP/DAG implementation methods and routes for viable customer service businesses

  39. Residential Costs/Benefits Cost of Delivering 1KW of residential DR Duration of 1KW of Residential DR Value of 1KW of Residential DR

  40. Task XIX Work Package 6(Business Case) • Determine customer reward mechanisms to deliver DR/E-saving • What is preferred DAG/ESSP business model?

  41. Business Drivers Pull together WP4 and WP5 Define ESSP/DAG Business How can business be implemented?

  42. Task Deliverables Reports addressing Requirements for Micro DR End Use changes to deliver DR/E- savings Mechanisms to motivate end use changes Costs/benefits for SME/residential DR/E-savings ESSP/DAG commercial viability Regulator/E-policy overview

  43. Task Schedule • 15 month Task • 8 person weeks of Experts’ time needed (expertise defined) • Workshops to collect country information rather than Experts writing text

  44. Work Schedule Experts’ Meetings

  45. Operating Agent Costs

  46. Contribution Table Options Total Budget 337,845 Euro 11 Participants 30,713 Euro 10 Participants 33,785 Euro 9 Participants 37,539 Euro 8 Participants 42,231 Euro 7 Participants 48,264 Euro

  47. Contribution Options Can be paid over 2 financial years. If sufficient funding cannot be obtained, reduced work plan can be proposed

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