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New England Demand Response Initiative: Demand Supply of Contingency Reserves. Brendan Kirby & Eric Hirst Oak Ridge National Laboratory Consulting in Electric-Industry Restructuring 865-576-1768 360-656-6691 Two NEDRI Draft Papers.

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new england demand response initiative demand supply of contingency reserves

New England Demand Response Initiative:Demand Supply of Contingency Reserves

Brendan Kirby & Eric Hirst

Oak Ridge National Laboratory

Consulting in Electric-Industry Restructuring



two nedri draft papers
Two NEDRI Draft Papers
  • Opportunities for Demand Participation in New England Contingency-Reserve Markets
  • Technical Issues Related to Retail-Load Provision of Ancillary Services

General Thesis

    • Loads can be ideal suppliers of contingency reserves for technical reasons: especially spinning reserve
    • Actively encourage loads to supply reserves to increase system reliability and reduce costs
    • Recognize and eliminate technology biases in contingency reserve supply rules
    • Recognize and accommodate differences in resource capabilities
loads can be ideal suppliers of ancillary services especially contingency reserves
Loads Can Be Ideal Suppliers of Ancillary Services – Especially Contingency Reserves
  • Fast response
  • Fast deployment
  • Redundancy
  • Distributed throughout the power system
  • Fewer and shorter interruptions than demand reduction or energy market response
    • less storage required
    • less disruption to normal load operations
  • Complements energy management and price response
  • Only looking for a small percentage of load to respond
load response benefits
Load Response Benefits
  • Individual load
    • Money - a service loads can sell
      • spinning reserve prices were twice as high as non-synchronized 10 minute reserve prices in both California and New York in 2002
    • Part of an overall energy management system
    • Complements energy management and peak shaving
    • A better match to the load's constraints
      • less frequent response: 1 or 2 times per month
      • shorter response: 10 to 30 minutes vs several hours
  • Other loads
    • Reduced energy & ancillary services prices
  • System
    • Faster response (90 seconds vs 10 minutes in one example)
    • More reliable response (statistical): redundancy & distributed
    • Better use of generation: available to serve load and sell energy
  • Public good
    • Reduced need for generation & transmission
one example spinning reserve from residential and small commercial thermostats
One Example: Spinning Reserve From Residential and Small Commercial Thermostats
  • Existing Carrier ComfortChoice technology for peak reduction
  • Faster than generation for spinning reserve
  • Spinning reserve capability ~3x peak reduction
  • Significant monitoring in place
communications and control
Communications and Control
  • Designed for multi-hour peak reduction
  • Deployment signal <90 seconds
  • Verification delayed to protect paging system
  • Grouping by location, type, or any other criteria
  • Customer override allowed for peak shaving, not for spinning reserve
  • Control can be duty cycle, set point, or turn off
  • Monitors temperature, run time, communications
  • Customer remote monitoring and control web interface
statistical response is better than monitored response
Statistical Response is Better Than Monitored Response

Aggregation of many (smaller) individually lower reliability resources still provides higher guaranteed response than fewer (larger) individually higher reliability resources

metering and communications requirements
Metering and Communications Requirements
  • Givens:
    • Payment must be tied to actual response
    • Deployment signals have to be fast
  • One SCADA monitoring system currently performs three functions
    • Continuous readiness monitoring
    • Real-time event monitoring
    • Performance monitoring
  • How much monitoring is required?
    • Statistical resources may not need the individual real-time monitoring that deterministic resources need
      • Redundancy may be better than observability.
      • A 5% error in total load forecast can be a problem. A 5% error in reserve response may not be.
    • Performance monitoring can be slower
    • What information does the system operator really require in real-time?
communications requirements are asymmetric this is a big benefit
Communications Requirements Are Asymmetric (This is a Big Benefit)
  • System-to-load communications are typically broadcast
    • Resource need – MW of response desired
    • Price
    • Deployment – respond Now!
  • Load-to-system communications are typically individual
    • Capabilities and price offer
    • Performance monitoring – conceptually can be slower
    • Aggregator may help
service definitions are critical
Service Definitions Are Critical
  • Most generators do not care if they run for 30 minutes or 8 hours
    • May have minimum run times
    • May have emissions limits
  • A load may be able to respond for 10-30 minutes but not 2 hours
    • Can re-arm immediately if not used frequently
  • Response capability matches spinning contingency reserve much better than demand relief
desirable load characteristics
Desirable Load Characteristics
  • Storage
    • product (excess production capacity)
    • water, liquid, or gas pumping
    • thermal
  • Control
    • may be secondary control
  • Low cost to shift production
    • always consider transition costs (pre-cooling, shift work, swing losses, …)
resource size is potentially large requires further research to quantify
Resource Size Is Potentially LargeRequires Further Research To Quantify

Residential load in New England is significant

New England has less industrial load than other regions

  • Design and open markets for all three contingency-reserve services
  • Ensure that reliability rules and requirements are truly technology neutral
  • Publish engineering and economic analyses results used to justify standards and rules
  • Review metering requirements
  • Characterize demand resource potential
  • Encourage loads to provide contingency reserves – work with aggregators
  • Research forecasting and other tools