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Demand Response/Distributed Energy Resources

The Changing Landscape of Grid Responsive Automation

Ann Perreault & Scott Petersen

October 2018

Contents

• Balancing the Grid

• Emerging Trends & Technology

• Why build a demand response capability?

• Demand Response & Virtual Power Plants

• Honeywell’s Demand Response solution

• Case study

• Honeywell Demand Response experience

• Summary

Balancing the Grid

2

Rapid retirement of fossil fuelled generation – regulation, costPlay vital role in keeping the grid stable

Continued reduction in cost of wind & solar leading to their growth

in the generation mix…but have no inertia

Solar – In 2018 for 1st time became greatest generation

source in UK! (but no inertia)

Sunday 6 May 2018

Why do we rely on system inertia?The operational challenges of intermittency

Seasonal Impact is dramatic

Electricity Grid System Frequency

When demand is greater than

generation then Grid frequency

falls, and when demand is

lower than generated power the

frequency increases

Normal, everyday 15 second period

50 Hz

The Grid is VERY sensitive to

frequency & must operate

within a narrow band

Outside of this BLACKOUTS

occur

Frequency Response to manage loss of inertia in Grid

Wind Drop frequency EventCorrective action taken

Without corrective action blackouts can occur

Frequency Response requirement increases as

old coal & gas fired generation (with inertia) are

retired & replaced with no-inertia

Infrastructure investment struggling to build at rate to match

demand growth

New electricity sub-station under construction

• Build new and replace old networks

• Increased urbanization

• New buildings - HVAC

• New demands

- EVs

- Cryptocurrency mining

- Electrification – transport, heating

- Cloud computing

• Rapid increase in connected renewables

• High cost

• Time required – often can’t keep up

- Constrained networks

- Grid connections unavailableResult: Demand exceeds System Capacity

Emerging Trends & Technology

• Rise in distributed energy resources

(UK - 2005: 80 power plants, 2017: 900,000)

• Digitisation – Blockchain, peer-to-peer, IoT,

vehicle-to-grid, AI, cloud, analytics

• Increased complexity - New actors

(disruptors), new business models, new

services

• Cyber Attacks

- British firms suffer over 600 attempts to breach their

firewalls every day

Major challenges Utilities MUST address

What can be done to help?

• Reduce electrical demand a small amount in devices and plant (eg fans, chillers, pumps) across many buildings

• No affect on performance or comfort conditions of occupants

• Schedule reduction events to match periods of high electricity prices/demand tariffs

• Remote scheduling of load reduction events in a co-ordinated fashion over the internet automates the process

• Utilizes existing building controls

• Able to access electrical devices, batteries, CHP plant and standby generators

• Simple, proven, low cost, secure, reliable

• Monetizes the buildings flexibility: enables building owners to earn revenues and save costs for no investment

Flexible tool for Grid Operator – Money earner for building owner

Why build a Demand Response Capability?

Add value to Grow & Retain key customers – new offers, new business models

• Access & monetise traditionally unsuitable electrical loads in customers’ buildings

- Enable Customers to access a revenue stream from their buildings for the first time

- Too small for individual DR services participation

- Can’t be switched off for extended periods of time

- Manage individual participation risk with portfolio approach

• Provide full demand flexibility offer for customers

- Load shed, on-site generation & energy storage

- ‘clean’ service with no carbon emissions

• Expand relationships with customers

- Couple with existing energy management services

• Build scale cost effectively

• Offer access to range of DSR services for customers

Single Cloud Platform offers Facility access to

wide range of DSR Services

DemandSitesReporting &

Analytics

Aggregator

Operator

FFR + ADR

Gateway

ADR Gateway

Residential &

MultifamilySmall

Commercial

Available as additional modules

Commercial & Industrial

Buildings

Energy Storage

+

Standby Generators

+

DSR Services

Frequency STOR Trade

Turn UpCapacity

Market

Demand Charges

Network

Relief

TradeTariff

Structure

Reshape

Aggregate Flexibility to build a

Virtual Power Plant

DemandSitesReporting &

Analytics

Aggregator

Operator

FFR + ADR

Gateway

ADR Gateway

Commercial&

IndustrialBuildings

Energy Storage

+Standby Generators

+

FFR + ADR

Gateway

ADR Gateway

Commercial&

IndustrialBuildings

Energy Storage

+Standby Generators

+

FFR + ADR

Gateway

ADR Gateway

Commercial&

IndustrialBuildings

Energy Storage

+Standby Generators

+

Across multi-

building sites

Across

countries

‘DemandSites’ Cloud-based Intelligent DSR Management System

• Intuitive, minimal training required, simple to set up & operate

• “Real-time” data feed to the Aggregator/Customer

• Powerful signalling engine

• Rules based Load Management interaction

- InSites analytics to forecast demand availability & optimise event performance

• Machine Learning to continually improve performance

• Simplified Integration with Operation/Backend Systems

• DSR Event Mapping and customizable Graphical User Interface

• Versatile ‘live’ Dashboards

• Handheld version for access on mobile ‘phone and tablets

The forecasting engine learns

the response to a DR event from previous DR events

Automated Demand Response (ADR)

Connection to

99+%

BMS /SCADA

systems

Gateway

DR Automation Server

(DRAS)

Fiscal

Electricity Meter with

Modbus gateway

Customer’s BuildingBMS/SCADA with

load adjustment

strategies pre-

loaded

Electrical Plant Devices Bureau

Gateway polls out

Every minute

Internet

Network Assets

Fire Wall

Balancing Services

Engineer conducts site survey & then

Designs Load Adjustment Strategy

HVAC

Chillers

Compressors

AHU Fans

Motors

Conveyors

Compressed Air systems

Network Relief

TSO

12

Smart Energy

Standby

Generators

Demand Charge Management

Energy storage

Only 1 piece of Equipment installed at site

CP-REM Gateway Panel GL Gateway Panel

Single panel with wire to BMS & meter

Installed in ½ day

Installed with NO disruption to building operation

Designed to operate without occupants noticing

or

Demand Charge

Management only

Demand Charge

Management, STOR,

FFR

Simple 5 stage process

Half Hourly Data desktop

analysisFull site audit Proposal

Energy Services

Agreement

Connection 4-6 weeks

1 2 3 4 5

Example: Load reduction strategy for Commercial Building

• Decease or increase all zone temperature set points by 2°C

• Reduce the number of VRF water source units in operation on each floor

• Reduce the fan speed on water cooled condenser units

• Reduce the speed of water circulation pump

• Switch off one of the Triplex lifts and one of the Duplex lifts

• Reduce the number of Airedale units in operation in the machine room and accompanying office areas

• Switch off all split units serving the Annex building

• Switch off all split units serving the meeting and conference rooms

• Switch off the HVAC primary boiler and associated circulating pumps

• Switch off all zone’s perimeter heating pumps

30% load reduction

• UK Head Office & Main Call Centre

• 13,600m2

• 1000 staff

• 1 MW peak electrical capacity

• Primarily HVAC load

• Modern BMS

• Not currently participating in DSR

• DSR Strategy

• Turn down supply & extract fans on 15 x AHUs by 66%

• Duty cycle Air Compressor: 7.5 minson/22.5 mins off

• Adjust set points by 30 C on 2 x chillers

• 320kW load reduction

• No impact on occupants

UK Commercial Property - Case Study

Simple DSR Strategy, Quick install

Monetising Distributed Small Loads

Challenge:

• 150kW minimum load shed required for funded

solution

• Example: Private UK Healthcare Group

- 69 Building portfolio

- Total load shed potential = 2.7MW

- 1 Hospital with >150kW load shed potential

- Average 40kW load shed potential across portfolio

- Cost to add Gateway & connect each building

individually leads to unattractive ROI

- Business case attractive for connecting only one

building = 5% of revenue potential

Enable Buildings traditionally with loads too small for

DR participation to participate

DemandSites

Over 1.5 million buildings around the

world, connected by Honeywell are

participating in demand response events

every day

Honeywell DSR Programs: Traction since 2010

Industrial & Commercial

• SSEN, UK

• Pearlstone Energy, UK

• Tata Power, India

• Transgrid, Australia

• China Light and Power

• State Grid Electric Power Research Institute , Tianjin

• Hawaiian Electric Co, Honolulu

• United Illuminating, Connecticut (Iberdrola)

• Southern California Edison (>150MW)

• Pacific Gas & Electric, California

• CPS Energy, Texas

• City of Tallahassee, Florida

• City of Quincy, Florida

• Duke Energy, Ohio

• Range of new opportunities under review in UK, Ireland, Turkey, Poland, Dubai, Saudi Arabia & Africa

Residential

• Residential DSR programmes for over 40 Utilities in US

Honeywell DSR Customer Sectors

• Commercial campuses & large offices

• Large retail

• Universities, Schools & Colleges

• Hospitals

• Airports

• Hospitality

• High Tech/Data Centres

• Car assembly plants

• Manufacturing plants

• Dairies & Food Manufacturing

• Minerals & Chemicals

• Metal products & finishing

• Aluminium smelting

• Stone & Concrete Products

• Injection Moulding

• Refrigerated warehouses

• Wholesale Warehouses

• Water Utilities

• Agricultural Water Pumping

• Pulp & Paper/Lumber Mills

• Military Bases

Vast experience to call on

Honeywell Turn-Key Demand Response Solution

• Software

- SaaS, cloud-based, intelligent, designed specifically for DR

- ADR, FFR, building based DSR event automation & control

• Audit each building

• Develop load shed strategies – special design tool

• Connect each building

- Field based Gateways

• Train operators & building owners

• Integration to back-office systems

• Ongoing software enhancement, field maintenance & support

• Cyber secure

• International provision & support

• Data collation in real-time, analytics & machine learning

Complete End-to-End Solution

Summary

• Comprehensive, proven DSR specific solution

• Turnkey, end-to-end solution

- Software

- Experience, knowledge, support

- Solution to easily connect customer sites without

disruption

- Continuous development Roadmap with input

from Utility customers

• Suggested Approach

- Technology demonstration

- Proof of concept Pilot

- Phased roll-out

28

Complete, flexible, cost effective DSR Solution for Utilities

Thank you