Task Status ReportMicro Demand Response and

Energy Saving

Richard Formby/John Baker

Proposed Operating Agents

April 2008

TSR Contents

Summary1. Introduction2. Task Aims and Objectives3. Objectives for the last six months4. Progress against Objectives5. Objectives for the next six months6. Finance7. Experts’ Meetings8. Matters for the EXCO

Background • Up to 40% of electricity is used by

smaller customers• Saving energy/CO2 is major objective of

governments• Smaller customers need mechanisms to

save energy• 3 ways customers can save electricity

- reducing use

- shifting use

- bidding demand change

• Maintain system security

EU Perspective

EU Directive on Metering and End Use Information for Customers

• 2012 targets

Major Issues

• How can commercially viable Demand Response and E-services be provided

• What is business model for SME and Residential Customers

EUMF• Feedback end use information,cost and

CO2 (displays)

• Demand disaggregation

- very “smart” metering

- modelling (interview data+real time disaggregation and feedback)

• 10% savings estimate• Put national disaggregation data on bills

now

Fixed TOU Pricing

• Fixed times and rates

- saves energy and CO2

• Manual/automatic/remote demand shift to lower price times

- communication enabled TOU meter to switch end uses (not really “smart” metering)

- “smart” end uses

- slightly “smart” metering for profiles development data collection

Dynamic TOU/Critical Pricing• DR participating in system operation

- automatic/remote switching (24 hrs)

- communication enabled end uses

- meter not really “smart”, 2 rate?

- saves energy and CO2

• Meter provides information to help customers reduce demand?

- very “smart” meter• Impacts profile settlements

Demand Side Bidding

• DSB is validated Dynamic DR

- saves energy and CO2

• Contracted DR to System Operator• Motivated by price and payment• High price dissuades customer override

(TOU meter plus comms to end uses)• Validation of “available”/“turndown” need• Validation by modelling DR or “smart”

remote metering

EXCO in Brugge Decisions

• EXCO supported Concept paper• EXCO interested in early Task results• Smart metering implications to be included• Hold TDM and develop Task• Deliver Task proposal at Exco in India and seek support

Interested Countries/Organisations

11 Parties:

Australia Austria

Belgium Denmark

Finland France

Japan Netherlands

Spain UK

Schneider Electric

Objectives for last 6 months

• Hold Task Definition Meeting• Develop the Concept Paper into a Task or

Subtask proposal• Present the new Task proposal to EXCO in

April 08 to solicit country/ organisation support

Task Definition Meeting

• Held 23/24 Jan 2008

• Finland, Netherlands, Spain and UK participated

• Keynote Speakers– National Grid UK– Defra UK

Results of TDM

• 6 Subtasks developed• Task not Subtask (proposed Task XIX)• DR/E-saving products definition to be included• Submit proposal to EXCO

Objectives for next 6 months• Finalise support and funding for the new Task

XIX• Start the Task and commence work on

Subtasks• Hold one Experts’ Meeting and Workshop

(Brainstorming Session) to collect country information and ideas on subtasks

Matters for the EXCO

• New Task XIX Proposal

• Vote Required to determine country/ organisation participation

Proposed New Task XIX

Micro Demand Response and Energy Saving

Objectives of New Task

• Define DR and E-saving products for System Operators, Suppliers, Governments and Customers

• Identify and develop DR and E-saving service delivery mechanisms based on EUMF and TOU pricing and Demand Control

Objectives of new Task

• Assess shared smart metering infrastructure• Estimate costs of product delivery systems• Evaluate how DAG/ESSP businesses can

provide DR and E-saving services for Residential and SME Customers

• Quantify the business case for providing DR and E-saving products

Energy Saving and Metering• EUMF - potential 10% E saving

- very “smart” metering/interviews• Tariff TOU-E savings + system security

- simple meter, “smart” end uses• Dynamic TOU-E savings + system security

- simple meter, “smart” end uses• DSB-E savings + system security

- simple meter, “smart” end uses

- validation by modelling or remote TOU metering

Parties interested in EUMF, TOU pricing and DR energy

services• System Operators

- peak demand reduction

- wind valley filling

- contingency management• Suppliers

- contract balancing

Parties interested in EUMF, TOU pricing and DR energy

services• Customers

- save money

- help environment• Governments

- save energy

- help environment

- maintain supply security

Parties interested in EUMF, TOU pricing and DR energy

services

• Demand aggregators/ESSP

- understand customers, suppliers, system operators

- understands marketing/promotion

- understands business case/investment

- independent

ESSP/DAG Business

• Face to Face Energy Advisor – Modelling• Advise on DR Enabled End Uses• Recruit/aggregate DR customers - End Uses• Micro Generation advice/promotion/

management• End Use Remote Diagnostics/Leasing• Advise on Tariffs• Negotiate accreditation for E-savings

ESSP/DAG Business

• Manage DR payments/Customer/SO/Supplier

• Finance/install DR/E-saving control/ communication infrastructure

Task XIX Work Package 1(DR service products)

Define parameters required for DR and E-services for SO, Suppliers, System

Responsible, Customers

DR/E-service Products

• System Emergency Reserve• Consumption reduced/restored in half hour• 1000 hrs per year• 5 times per day

DR/E-service Products• Reserve for wind deviation• Reduce consumption in night valley• 1 hour notice• 1000 hrs per year• Once per day• Customer behaviour change• EUMF• Information

Task XIX Work Package 2(End Use Demand Changes)

• Identify specific end use demands for DR/E-service business

• Identify what DR/E-service may be possible by SME end-uses

• Identify what DR/E-service may be possible by residential end-uses

• Determine architectures for aggregating and delivering DR/E-service

• Estimate “Demand Available”?

Potential SME Customer Sectors

• Education• Wholesale/Retail• Manufacturing• Financial/Business Services• Health and Social • Government• Community

Carbon Savings by Service Type

Task XIX Work Package 3(Delivery Mechanisms)

• Define “smart” mechanisms for motivating and delivering DR/E-service by residential and SME customers (EUMF, TOU, remote switching, DR)

• Evaluate Energy Advisor role to deliver EUMF energy savings

How to Deliver 1KWh Saving

• Information Feedback• Energy Audits• Energy Advisor• Marketing Behaviour Change• Energy Price

How to deliver 1 KW of DR

• CELECT- in-house communications• Intelligent plugs• Manual/Auto Demand Changes• Smart Metering (TOU Pricing etc)• Validation of Demand Changes• Customer override?

What technology is available

• In-house communications• Out-house communications• Communication enabled end uses• Communication enabled thermostats• Smart metering• Disaggregation Models

Task XIX Work Package 4(SME Costs/Benefits)

• Determine ESSP/DAG costs and benefits for SME customer energy saving services

• Determine ESSP/DAG implementation methodologies and route for viable SME service businesses

• Investigate accreditation possibilities for DR/E-saving measures (White Certificates, EEC/CERT)

SME Costs/Benefits

• Benefit of 1KW of DR• Duration of 1KW of DR• Cost of Delivery of 1KW of DR• How does ESSP/DAG get paid?• Who invests in DR Infrastructure?

Task XIX Work Package 5(Residential Costs/Benefits)

• Determine ESSP/DAG costs and benefits for delivering residential customer DR/E-saving services

• Determine ESSP/DAG implementation methods and routes for viable customer service businesses

Residential Costs/Benefits

• Cost of Delivering 1KW of residential DR• Duration of 1KW of Residential DR• Value of 1KW of Residential DR

Task XIX Work Package 6(Business Case)

• Determine customer reward mechanisms to deliver DR/E-saving

• What is preferred DAG/ESSP business model?

Business Drivers

• Pull together WP4 and WP5• Define ESSP/DAG Business• How can business be implemented?

Task Deliverables

Reports addressing

• Requirements for Micro DR• End Use changes to deliver DR/E- savings• Mechanisms to motivate end use changes• Costs/benefits for SME/residential DR/E-savings• ESSP/DAG commercial viability• Regulator/E-policy overview

Task Schedule

• 15 month Task• 8 person weeks of Experts’ time needed

(expertise defined)• Workshops to collect country information

rather than Experts writing text

Work Schedule

0 3 6 9 12 15

July

200

8

Oct

200

8

Jan

2009

Apr

il 20

09

July

200

9

Oct

200

9

Months

Subtask 1 Subtask 2 Subtask 3 Subtask 4 Subtask 5 Subtask 6

Experts’ Meetings

Operating Agent CostsSubtask/activity Manpower (€) T&S(€) Totals(€)

1. DR & Energy Saving Products 45,875 45,875

2. End User Demand Changes 54,895 54,895

3. Delivery Mechanisms 39,025 39,025

4. SME Costs/Benefits 41,640 41,640

5. Residential Costs/Benefits 41,640 41,640

6. Business Case Estimation 42,825 42,825

Project management, ExCo liaison & reporting 48,795 48,795

Travel & subsistence (T&S) 23,150 23,150

Totals: 314,695 23,150 337,845

Contribution Table Options

Total Budget 337,845 Euro

11 Participants 30,713 Euro

10 Participants 33,785 Euro

9 Participants 37,539 Euro

8 Participants 42,231 Euro

7 Participants 48,264 Euro

Contribution Options

Can be paid over 2 financial years.

If sufficient funding cannot be obtained, reduced work plan can be proposed