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Informing Utilities and Policymakers on the Customer Side of Smart Grid

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  1. Informing Utilities and Policymakers on the Customer Side of Smart Grid Harvey Michaels, Scientist/Lecturer DUSP Environmental Policy and MITEI 617-253-2084 hgm@mit.edu 9-326 Instructor: Enabling an Energy Efficient Society

  2. Efficiency in US Homes and Buildings ( 71% of all electricity, 54% of all natural gas) Potential: • Est. 50%+ Savings at Lower Cost over 20 years. • Without sacrificing comfort or function, Technology Examples: • Home Central AC tune-upscan displace 25000 MW (25 plants) for $12B • CFL’s in “recessed cans”will save 5% overall (LED’s 7%) • Optimization/storage can reduce peak load AND ENERGY USE by 25%. Deployment Methods (examples): • Smart Grid:Pricing/AMI, and info/behavioral technologies, • Rebates/Direct-install:funded by utilities, carbon cap-and-trade, • New building codes, upgrade on transfer, appliance standards.

  3. Smart Grid – Utility Private Network Architecture – utility provides meter-to-devices communication Utility-network devices in home Customer MDM/Head-end Utility-side

  4. The Customer Side of AMI: 2 strategies 1: AMI – Responsive EnergyStrategy • Price-based demand response, using time-differentiated rates, which requires AMI. • Vision: Customers view data, make choices, in time automatic response by customers thermostat and other devices. 2: Smart Grid – Utility Control Strategy • Push-button Control-based demand response – The Utility monitors and controls end use equipment. • Vision: Generation, transmission, distribution, and end use equipment as part of a single system. • Interval meter reads not essential.

  5. Do we want “Smart Grid” - Utility Control? • End use equipment is visible and controllable by the utility or third party– • “Smart Grid” is more dispatchable (perhaps) and therefore can replace spinning reserve ….but some find it kind of scary. Resistance is Futile Prepare to be Assimilated

  6. Customer Side of Smart Grid = Responsive EnergyProviding consumers with energy diagnostics, feedback, control I2E

  7. Definition: “Responsive Energy” “Enable responsive, smart energy environments that are gracefully integrated with people.”* SUCH AS: systems for optimizing consumers’ end-use needs (especially air conditioning, heat, hot water) • based on weather, schedules, and time differentiated costs. Smart/Responsive energy holds great potential for displacing the need for other energy resources. • But what will be the ultimate delivery model: utility or marketplace? • And who will control the “smarts”: utility or customer?

  8. Vision – Web/IP Collaboration of Workspaces- customer/home network has access on demand to real time, high frequency meter reads Device Workspace Customer-side Utility’s Web Workspace MDM CRM Utility-side

  9. Questions: Utilities in the Responsive Energy World • Utility-controlled vs. Customer-controlled optimization? • Home network gateway and/or Meter network gateway? • AMI : • two way, high bandwidth communications? • Meter-to-Home Network Communications? • Web Workspaces vs. In-home displays • Working with the Market

  10. Cross-campus Responsive energy research • Intelligent Infrastructure for Energy Efficiency (I2EE) research on in-building communication methods. • Energy Box - consumer-managed modulation systems. • Behavioral systems to encourage energy efficiency. • Building energy analysis based on control schema. • Evaluating community-level measurement and modulation systems • Innovation Pathways - for energy efficiency and smart grid.

  11. Vision - Applications for the Smart Consumer • Utility, thermostat, appliance, Google, etc. make app. • View on home PC, work PC, TV, cell phone (at least until next year). Application ideas: • Make my AC, water heater, pool pump, refrigerator use pattern smarter. • Find out what anything costs to run. • Choose the best rate for me. • Choose a theme – understand the consequences- do it (ie. More Green) • Sell a DR option.

  12. Informing Utilities and Policymakers on the Customer Side of Smart Grid Harvey Michaels, Scientist/Lecturer DUSP Environmental Policy and MITEI 617-253-2084 hgm@mit.edu 9-326 Instructor: Enabling an Energy Efficient Society