Main Headquarters: 120 Water Street, Suite 350, North Andover, MA 01845 With offices in: NY, ME, TX, CA, OR

www.ers-inc.com

CHALLENGES IN REVIEW AND POST-INSTALLATION INSPECTIONS OF A DEMAND RESPONSE PROGRAM

Prepared and presented by Mark D’Antonio (ERS)

Co-AuthorsChris Smith (NYSERDA)

John Seryak, Gary Epstein (ERS)

Presentation Overview Background NYSERDA Peak Load Reduction Program Overview Process Overview Review and Inspection Challenges Case Studies Lessons Learned

Presentation Overview Background NYSERDA Peak Load Reduction Program Overview Process Overview Review and Inspection Challenges Case Studies Lessons Learned

Background

NYSERDA – New York State Energy and Research Development Authority

Operates the Peak Load Reduction Program• Summer Peak Reduction• Enabling Technologies

Supported by Systems Benefit Charge (SBC) Funding

NYISO - New York Independent Systems Operator Administers Demand Response Programs Incentivizes Actual Curtailments and Demand Response Actions

NYSERDA Consultants – competitively solicited group of contractors that provide Quality Assurance services for NYSERDA’s program (ERS’ region – NYC)

NYSERDA’s Peak Load Reduction ProgramPON 955

Permanent Demand Reduction (PDR) Electric Technologies – Lighting, Chillers, Motors…. Steam Retention (Avoided Electric Load) – Absorption Chillers, Steam Turbine Driveline Chillers

Load Curtailment/Shifting (LC/S) Enabling Controls for Curtailment Load Shifting

Distributed Generation (DG,DR) Distributed Generation Demand Response (Generators)

Interval Meters (IM) PSC Approved - Revenue Grade NYISO Compliant – Shadow Meter

NYSERDA’s Peak Load Reduction Program

PDR LC/S DG IM

Con EdisonService

Territory

Non-Con

EdisonService

Territory

Con EdisonService

Territory

Non-Con

EdisonService

Territory

Con EdisonService

Territory onlyStatewide

$500/kW Electric

$425/kW Steam Ret

$225/kW $200/kW $45/kW$120/kW exist DR$160/kWnew DR

$400/kW DG

$1,500/meterNYISO Compliant

$2,000/meterPSC Approved

1. Contractors will be reimbursed the lesser of 65% of the Eligible Project Costs or the incentive caps set forth in Table 1. The Facility owner/operator must contribute no less than 35% of Eligible Project Costs. Facility cap of $750,000. Contractor cap of $2 Million2. Incentive of $100,000 provided to aggregators who provide greater than 10 MW of verified load curtailment in ConEd territory3.Super Efficient Chillers eligible for additional incentives

Energy Efficiency Technologies Lighting, Motors, HVAC, VFDs,

Industrial Equipment Energy Management System Load

Control Smart Load Control Systems Metering

Systems Direct Load Control Backup Generation Distributed Generation Load Shifting Technologies (Thermal

Storage) Avoided Load (Steam Drivelines/Chillers)

Enabling Technology Options

Process Overview Application

NYSERDA Reviews for Program Requirements (in house) Encumber Funds, Issue PO to Applicant, Assign QA Consultant

Applicant Submits Technical Assessment (TA) to QA Consultant TA documents analytical basis and equipment details for proposed Demand Reduction

QA Consultant Reviews TA Technical Feasibility and Accuracy Recommendation to NYSERDA ( Approval, Modified Approval, Disapprove)

NYSERDA Issues Notice to Proceed (for Approved Projects) Installation Post-Installation Inspection by QA Consultant Final Approval Sent to NYSERDA NYSERDA Processes Incentive

QA Consultant Role General Guidance

Respond to Applicant Questions About the Process Technical Review of TA

Pre - Installation Site Visit (Optional) Screen TA for Completeness Analytical Review – Technical Content, Feasibility, Accuracy, Cost Work with Applicant for Modifications

Approval Recommendation Post-Installation Inspection

Verification of Equipment Actually Installed – qty, make/model, details, photos Operability and Sequence of Operation – demonstrated performance

Final Approval

Example Projects PDR - Lighting

Commercial Retail - T12 to T8 Conversion, Incandescent to CFLs, Delamping. 1,700 kW Peak Load, 26 kW Permanent Reduction, Approved Incentive = $12,250

LC/S – EMS Load Shedding Commercial Retail - HVAC Fan & Pump Control (VFDs) 8 MW Peak Load, 575 kW Load Curtailment, Approved Incentive = $103,500

PDR – Steam Retention Commercial Office Building – Steam Turbine Driveline Replacement 1,424 Peak Load, 649 kW Avoided, Approved Incentive = $308,275

Example Projects - Continued DG – Gas Fired Micro Turbine Refrigerated Food – Three Natural Gas Micro Turbines 1,400 kW Peak Load, 180 kW DG, Approved Incentive = $49,500

DR – Diesel Generator Food Manufacturing – Diesel Back Up/Demand Response Generator 1,300 kW Peak, 259 kW in DR, Approved Incentive = $32, 375

PDR – HVAC Modifications Commercial Office High Rise – Install Premium Efficiency Motors and VFDs on SAF,RAF and CT Fans 8,500 kW Peak, 329 kW in DR, Approved Incentive = $156,275

Challenges General Many Players – Applicant, Building Owner, Building Operator, Contractor (TA developer), CSP, NYISO, ConEd, Department of Environmental Conservation (DEC) Often Chasing Information Unethical Practices?

• Overly Aggressive Reductions• Unscrupulous Business Practices

Challenges - Continued Analytical

Numerous Technologies – EE, Controls, DG, Generators, Meters Proprietary Information? (Obtaining Performance Data, Custom Spreadsheets - QA Consultant viewed as a competitor that will gain competitive advantage) Inadequate Information in TA’s Lack of Analytical Capabilities of Project Developers

Inspection Access Issues (Inaccessible locations, Inaccessible Equipment, Inaccessible People) Incomplete Projects – “Well it is almost done - perhaps I could get my incentive…..” Unwilling to Demonstrate Operation (ex: transfer Building Load to DR Generators)

Challenges – More Specifically Verifying Large Lighting Projects

Restricted Access – locked rooms Sampling

Establishing Load Profiles Modeling vs. Logs vs. Monitoring VFDs – now for Curtailment only (PON 955)

DR Generators Facility Owner wants NYSERDA $, but often doesn’t understand NYISO – Vendor just wants to sell generator – Need CSP coordination Permitting Documentation can be delayed NYISO Registration Confirmation Verification of Load Transfer (Interval Data)

Distributed Generation Establishing Actual Operational Parameters (Run-time, Loading)

Case Study – 1585 Broadway

• Morgan Stanley

• 42 Floors – 1.4 Million SF

• 8,500 MW Peak Load

• VFDs on Variable Pitch SAF, RAF

• PE Motors and VFDs on CT Fans

• Property Mgt – Applicant

• Technical Contractor – develop TA

• Installation Contractor(s)

• Separate Controls Contractor

• Proprietary Analysis

• Did Not Install PE Motors

• Communications Issues – not all VFDs working (finger pointing)

• Control Algorithms Somewhat Different than Proposed

• Modified “Final” Approval

• 2nd Site Inspection Requested by Applicant After Recalibration

• EMS Trending

• Modified “Final Final” Approval

Case Study – Challenges

Lessons Learned Communicate, Communicate, Communicate

Assume Nothing Explain Everything

Involve All Stakeholders Make Sure all Parties are Clear on Process, Deliverables and Requirements Document Correspondences and Keep All Parties Informed

Program Managers as Mediators Clarifying Program Decisions are Needed Occasionally from NYSERDA Program Managers

Diligent (but respectful) Scrutiny is Required Verification – Did the right stuff get installed? Ethical Practice

Direct Load Control Traditionally Focused on Residential Sector DHW, Pool Pumps, AC

Many New Approaches for C&I Sector Central Control of Multi-Facility Customers

Remote EMS Control of Sites with Pre-programmed curtailment strategies

Programmable, Direct Load Control Thermostats Direct Load Control Switches: AC, Electric Heat, Etc.

21 locations (1 MW)

36 locations (4.4MW)

16 locations (0.8 MW)

Distributed Generation Technologies

Backup Generation Systems Assessment of Load Applicability During Curtailment is Critical Environmental Requirements are Similarly Critical

Diesel Generators Steam Turbine DG MicroTurbine Systems Renewable Technologies

Fuel Cells Photovoltaics

Local Scheduling Controllers Typically Address HVAC and Lighting Many Energy Management Systems have

Demand Control Features Programmed Scheduling Demand Limiting Duty Cycling

Generally, EMS Systems Schedule (Turn Off) Predetermined Groups of Equipment

Challenges or Limitations Demand Control Can Conflict with Control Rules Rules Based Logic Can Limit Certain Demand Control Effectiveness

Central and Focused Energy Management Systems for Demand Control

Systems are Dedicated to Demand Control Do Not Have Standard BAS or EMS

Functionality Continually Monitor Facility kW

Single or Multiple Meters Smart Algorithm Continually Forecasts Average

kW During Specified Period (e.g.: 15 or 30 minute period)

Smart Duty Cycling Routine is Used to Modulate or Turn Off End Use Equipment to Avoid Reaching Threshold kW Levels

Neural Net (AI) - Smart Building Automation System that Progressively Learns Best Operation of Building Systems

Smart Demand Control with kW Forecasting

kW Impacts with Lighting Efficiency Technologies and Occupancy Sensors

Scheduling with Lighting Control Panels Direct Addressable Lighting Systems (DALI,

etc.) Multi-Level and Continuous Dimming

Systems Load Shedding Ballasts

Power Reducing or Current Limiting Devices ???

Demand Control with Lighting Technologies

Load Shifting Thermal Storage Off-Peak Operations for Industrial

Facilities Fuel Switching Technologies

Absorption Chillers Steam Turbine Chillers Engine-Driven Chillers Engine-Driven Compressors

Load Shifting/Fuel Switching Technologies