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Demand Response (DR) & Energy Efficiency. "The least expensive kilowatt is the one not used," Joe Desmond, Chairman of CEC. Dennis J. Charlebois, P.E., Ph.D . V.P. Marketing & Technology [email protected] Energy Facts (US). US - 2004 – 4.0 Trillion KWh consumed (+2%)

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Demand Response (DR) & Energy Efficiency

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Demand Response (DR) & Energy Efficiency

"The least expensive kilowatt is the one not used," Joe Desmond, Chairman of CEC.

Dennis J. Charlebois, P.E., Ph.D.

V.P. Marketing & Technology

[email protected]


Energy Facts (US)

  • US - 2004 – 4.0 Trillion KWh consumed (+2%)

    • 23 Million barrels oil (-17%)

    • 485 Billion Cu Ft of natural gas (+6%)


Energy Facts (US)

  • Lighting

    • 30% of institutional building's energy use

    • 40% of a school's total energy use

  • Space heating/cooling

    • 37% of a typical government building's energy

    • Government agencies in the United States spend > $10 billion a year – 1/3 goes to waste.

    • Healthcare organizations spend > $6 billion

    • K-12 spend > $6 billion — more than is spent on textbooks and computers combined! ENERGY STAR rated schools cost forty cents per square foot less to operate than the average school

    • Higher Ed ~ $2 billion. Energy management can lower their energy bills by 30% or more

  • US Dept of Energy


    Energy Facts (CA)

    • In Summer 2004 (per CEC report to Senate)

      • ISO Peak demand records were set 7 times in spite of average weather conditions.

      • 2004 peak demand was at a level projected for 2006.

      • Southern California had insufficient reserves on several days

      • Transmission bottlenecks reduced access to available capacity which was needed to serve demand.

      • Reliability was at risk due to failure to secure deliverable resources in advance.

    California Energy Commission


    Energy Facts (CA)

    • Energy Efficiency Successes

      • In California since 2001 - Energy savings > 1,000 Megawatts (MW) a year

      • In 2001, CA state office buildings cut energy use by an average of 22%, including a 26% reduction in one month.

      • California's Department of General Services benchmarked 35 buildings in 2001; 3 achieved Energy Star status

      • A new state complex in Sacramento, the Capitol Area East End, is expected to save $429,000 annually in energy costs as a result of its sustainable and energy-efficient design and construction.

      • Many cities, counties and special districts in California reduced energy use in their facilities by at least 15% - ie. City of Poway retrofitted traffic lights with energy-efficient LEDs ~ 71% energy savings

    US Dept of Energy


    Demand vs Supply…situation is likely to get worse in spite of add’l new capacity


    2005 Outlook – CA (ALL)


    2005 Outlook – CA (North)


    2005 Outlook – CA (South)


    C.E.C. FORECAST MODELS


    2005 California Energy Outlook

    • 2005 through 2008 predicted to be “very tight”…large gaps anticipated

    • Add’l Generation will not fill the gap

    • Retirements will exacerbate the problem

    • Transmission capacity is questionable

    • Bay Area Econ Forum is predicting Power Crisis (2001)

    • CEC is pushing Demand Response as first line of defense

    • Additional Risks;

      • Higher than expected economic growth…higher demand

      • Higher than expected forced outages.

      • Lower than expected imports.

      • Regional “heat storm”.

      • Reduced hydro resources.

      • Higher than expected congestion.

      • Transmission closures due to forest fires.

    *Sources – California Energy Commission Update Report Feb 2005; BAEF “Lightning Strikes Twice-California Faces Real Risk of Second Energy Crisis – August 2004


    2005 CEC Plans

    • Ensure load serving entities to forward purchase sufficient resources to maintain reliability.

    • Augment demand response (DR) programs.

    • Augment energy efficiency programs.

    • Ensure successful utility procurement processes.

    • Accelerate construction of permitted power plants.

    • Add additional peak generation capacity

    • Identify and expedite transmission upgrades feasible for 2005.

    • Emphasize public education and voluntary reduction efforts.


    C.E.C. Takes Action with DR

    • The Demand Response Research Center (LBNL/Purdue Joint Venture)

      • Research on how to do Demand Response

      • Covers technologies, policies, programs, strategies and practices

      • Price response scenarios are modeled

        • time-of-use rates

        • dynamic pricing

        • demand bidding programs


    Two Types of DR

    • “Call-Type” Programs

      • Participants commit load reductions

      • Penalties if commitments not met

      • Rebates to customer for shed loads at peak

      • Comprehensive Baseline for each customer is needed

  • “Quote-Type” Programs

    • Participation is voluntary

    • Customers decide day-to-day on what they will/won’t do

    • No penalties

    • Dynamic Pricing is essentially a quote type DR


  • Why is DR Important?

    • Helps avoid rolling blackouts

    • Customers can capture preferred energy pricing

    • Reduces environmental impact

    • Helps offset generation retirements

    • Helps offset generation shortfalls

    • Helps offset transmission overload


    How is DR Accomplished?

    • Manual Demand Response – Light Switches & HOA’s

      • Labor intensive

      • Requires human intervention

      • Moderate overall impact

  • Semi-Automated – Existing Building Automation Systems

    • Preprogrammed responses

    • Requires human intervention

    • Relies on availability


  • How is DR Accomplished?

    • Fully Automated – BAS & Energy Management Information System

      • No human intervention

      • Signal dependent

      • Reliable outcome

      • Measurable & Verifiable


    Demand Response – Methodology


    Predicted Savings - Sample


    Real Savings – GSA Oakland

    Regression Model

    Power [kW]

    Actual


    Issues Affecting DR

    • Transparency of Energy Costs

      • Accuracy and availability of data

      • Telephone/Pager/Email does not fill obligation

  • Shedding needs to be obligated

    • Grid operator requires reliability from DR participants

  • Ramifications need to be understood

    • User must understand all load opportunities and historical consumption profiles

    • Tools required to analyze portfolio

    • Focus on least intrusive impact to building occupants


  • Issues Affecting DR

    • Connectivity to Energy Consuming Equipment

      • Human intervention minimized

      • Signal must link to response

  • Sophisticated Decision Making

    • Automation is essential

    • Rules-Engine needed to drive response(s)

    • Multiple scenarios need to be mapped and tested under varying conditions


  • Issues Affecting DR

    • Measurability and Verifiability

      • Need to be able to verify curtailment obligation (for financial settlement)

      • M&V tools can normalize data for Weather and Billing Period

  • Integration of Unlike Systems/Equipment

    • DR Strategies must incorporate multiple vendors

  • Anywhere, Anytime Access is needed

    • Web-Enabled/LAN accessibility

    • Real-time systems availability


  • Preparation for DR

    • OBJECTIVES – Readiness, Responsiveness, Minimal Impact

      • Evaluate readiness of complete Portfolio of County Bldgs

        • Understanding the facility(ies) and what is available to be involved in the program

      • Quantify Demand Response Capabilities

        • Manual vs Automatic

      • Identify Energy Conservation Measures

      • Evaluate & Prepare Financial Indicators – IRR, ROI, etc

        • One-time & Recurring costs

        • Savings (Reduced consumption, Rebate programs)

    • Comprehensive Application Plan

      • Turnkey Automated Response to STAGE 1,2,3 Alerts


    Demand Response – LBNL Study

    • Motivations for Demand Response

      • Improve grid reliability

      • Flatter system load shape

      • Lower wholesale and retail electricity costs

    • Method

      • Provide fictitious dynamic XML-based electric prices with 15-minute notification

      • Program building EMCS & EIS to receive signals & respond

      • Document building shed using EMCS & metered data

    California Energy Commission's Public Interest Energy Research (PIER)


    Existing DR Programs in CA


    Long Term Benefits

    • Proactive & Instantaneous response to Alerts & Pricing signals

    • Demonstrated leadership by early adopters

    • Reduced County energy costs

      • Energy Costs

      • Long Term Cost of Ownership

  • Favorable Environmental Impact

  • Measurable and Verifiable Results for all to see

  • The tools to deliver Continuous Improvement


  • Space Setpoint Changes

    CHW/CDW/SAT Temp Reset

    Occupancy Control

    Demand Control Ventilation

    CO Control (garages)

    VAV/VFD fan speed control

    Optimal Start/Stop

    Equipment Sequencing (ie. chillers)

    Cooling Tower Control (fans)

    Night Ventilation

    Economizer/Free Cooling

    Lighting controls (time)

    Dimming controls

    Occupancy Sensors

    Lighting sweeps

    Load Shedding/Load Rolling

    Demand Peak limiting

    Thermal Storage

    Distributed Generation

    Co-Generation

    Lighting Retrofits/Upgrades

    HVAC/BAS Recommissioning

    Utility Rate Optimization

    Energy Conservation Examples

    Accomplished through DR


    Next Steps for DR

    • Findings (forthcoming report: dr.lbl.gov)

      • Demonstrated feasibility of fully automated shedding

      • XML and related technology effective

  • Next Steps: Evaluate Performance of Current Test Sites

    • In hot weather

    • Participation in DR programs

    • Annual benefits at each site & through enterprise

  • Beyond Test Sites

    • What other strategies offer kW savings & minimal impact?

    • How could automation be scaled up?

    • What are costs for such technology?

    • What is statewide savings potential?

    • What is value of fully automated vs manual DR?


  • DR Resources

    • Demand Response Research Center

      • Forthcoming site http://drrc.lbl.gov

    • Current CEC Demand Response Sites

      • Consortium for Electric Reliability Technology Solutions (CERTS)

        http://certs.lbl.gov

      • Center for the Study of Energy Markets (CSEM)

        http:// www.ucei.berkeley.edu/power.html

      • Demand Response Enabling Technology Development (DRETD)

        http:// ciee.ucop.edu/dretd


    About Us & How We Can Help


    Yamas Inc.

    • Facility Systems & Technical Services

    • Open, Non-Proprietary Systems Integrator

    • 52 year old California based Company

    • National coverage– 13 offices East & West

    • $60 Million in revenues annually

    • 400 employees

    • Significant installed systems base


    Yamas Businesses

    Bldg Systems

    Building Services

    • Energy Management

    • Lighting Control

    • Electronic Access Control

    • Alarm Monitoring

    • Environmental Control

    • Temperature, Humidity, Pressure

    • Air Quality

    • Smoke Control

    • System Integration (BAS, ERP)

    • Network Design

    • System Modernization

    • System Migration

    • Preventative Maintenance

    • Repairs & Replacements

    • HVAC Diagnostics

    • Mechanical Maintenance

    • Help Desk

    • Training

    • Recommissioning

    • Parts Warehouse

    • Technical Support

    • Remote Diagnostics

    • Dispatch Call/Center

    • Extended Warranty

    • Network Services

    Data Services

    Energy Services

    • Data Aggregation

    • Data Trending/Reporting

    • Database Maintenance

    • Software Support

    • Hosted Applications

    • Field Workforce Automation

    • Configuration Management

    • Application Rationalization

    • Demand Response Programs

    • Energy Audits

    • Energy Retrofits

    • HVAC Retrofits

    • Financing

    • LEED

    • Energy/Utility Analysis

    • Energy Management


    Yamas Locations Serving CA

    Sacramento

    San Francisco

    Oakland

    Los Angeles

    Reno

    Las Vegas


    Yamas Customers


    How Yamas Can Help

    • Rationalize BAS Systems

      • Assessment and migration towards Open Systems

      • Multiple BAS Vendor Integration

      • Smart Integration with mech/elect equipment

  • Recommissioning (Retro-Commissioning)

    • Improves Environment of Care Comfort Conditions

    • Reduces Demand Maintenance Costs

    • Supports JCAHO Continuous Readiness Principles

    • Uncovers new Energy Conservation possibilities

    • Positions Facility for Dynamic Pricing


  • How Yamas Can Help

    • Enhanced Automation & Control

      • Capitalizes on Existing Infrastructure

      • Improves the Potential for Energy Cost Reduction

  • Other Items

    • Utility/Consumption Analysis

    • Conservation Benchmarking

    • Load Profiling, Trending, Modeling

    • Optimization of Control Strategies for Real-Time Energy Pricing

    • Training & Education

    • EMS Application/Software Analysis

    • Configuration Management


  • Yamas Uses VES To Enable DR


    • Eliminates Manual Intervention

      • Meets reliability obligation

  • Delivers the Appropriate Information

    • The tools to perform critical analysis

  • Provides Consuming Equipment View

    • Significantly broadens shed options

  • Automates Decision Making

    • Signal can drive curtailment options

  • Can be Measured and Verified

    • Demonstrates the curtailment obligation

  • Offers Access from Anywhere

    • Allows anytime system fine tuning


  • Questions & Discussion


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