ACTIVE DEMAND MANAGEMENT: WHERE ARE WE NOW PLUS A LOOK AHEAD Jeff Schlegel, EEAC Consultant Team March 20, 2019
INTRODUCTION ► The Green Communities Act directs administrators of energy efficiency plans to meet “electric and natural gas resource needs… first… through all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply [ emphasis added ].” ► EE programs reduce energy demand – passive demand reduction ► Focus of this presentation is on reducing or managing energy demand using active demand management (ADM) ► Today: check in on where we are now compared to the Council’s priorities, plus a look forward ► This presentation follows the PA presentation on March 20; please review the PA presentation first www.ma-eeac.org | 2
COUNCIL PRIORITIES FOR ADM IN THE 2019-2021 PLAN Council priority: Include goals specific to active demand management and integrate the delivery of active demand management offerings within the EE programs in the 2019-2021 Plan. 1. Move beyond the current demand demonstrations and scale up ADM activities fully in the 2019-2021 Plan, including claiming demand savings and quantifying impacts. 2. Integrate the delivery of ADM offerings with energy efficiency program delivery. 3. Develop a goal for ADM that is separate and distinct from goals for traditional EE/passive demand reduction. Plan, track, and report the capabilities, performance, and costs of active demand management separately and in a manner that will enable development of and tracking towards the ADM goal. Priority developed during cross-cutting workshop on 1/30/18, and included in July 31 resolution. www.ma-eeac.org | 3
EEAC #1: Move beyond the current demand demonstrations and scale up ADM activities fully in the 2019-2021 Plan, including claiming demand savings and quantifying impacts. ► Very good progress in moving from demonstrations to full offerings for 2019-2021 ( see PA slides ) − Achieved through early efforts at National Grid and CLC, combined with a range of demonstrations at all PAs − Daily dispatch still a demonstration for 2019 but expected to be a full offering in 2020 ► Open, technology-agnostic offerings provide the opportunity for full effort to scale up ADM… ► … though additional targeted efforts and promotion are needed to scale up to full potential (PAs are on it) ► Questions on equity and who will participate & benefit ► Looking ahead, future focus on next five slides www.ma-eeac.org | 4
NEW TECHNOLOGY AND CONSUMER BEHAVIOR ARE MAJOR DRIVERS ► Smart thermostats ► Home energy monitoring and energy management ► Connected homes and equipment ► Building and system automation – software and controls ► DERs (distributed energy resources): demand resources (EE and ADM), distributed generation, and storage ► Artificial intelligence (AI) is coming Ratepayers Customers Prosumers www.ma-eeac.org 5
HOME ENERGY MONITORING AND ENERGY MANAGEMENT TRENDS Systems and tools beyond smart thermostats: Energy management systems help customers keep tabs on their home energy by notifying them when devices are on or off, monitor energy usage in real time, and display energy consumption for each appliance. And can enable and monitor ADM efforts. www.ma-eeac.org 6
PURSUING MULTIPLE VALUES – STACKING VALUE AND BENEFITS Customer - Energy, demand, costs - Other customer value Utility/ISO systems - System energy, capacity - Markets (FCM, other) - Distribution, transmission Policy/Commonwealth - Energy and economic - Climate - Equity (who pays/benefits) Customer Cost-Effectiveness ≠ Program Cost-Effectiveness www.ma-eeac.org 7
FUTURE OF SOFTWARE & CONTROLS – INTEGRATED VALUE TO CUSTOMERS Source: Alex Do, Acuity Brands; presentation at Design Lights Consortium Stakeholder Meeting, July 2017 (Several people have used the 3/30/300 framing of customer value) www.ma-eeac.org | 8
NEAR-TERM FUTURE OF ADM: DEMAND MANAGEMENT, NOT JUST “REDUCTION” ADM Service Types Across Timescales and Objectives to Meet Grid Needs Source: 2025 California Demand Response Potential Study, LBL, May 2017 www.ma-eeac.org | 9
EEAC #2: Integrate the delivery of ADM offerings with energy efficiency program delivery. ► Good initial progress in integrating the marketing and delivery of ADM offerings for 2019-2021 − EE programs provide the enabling technology and seed the opportunity for ADM – smart thermostats, building management systems, controls and software, etc. − EE programs and delivery channels for marketing/outreach • Effective smart thermostat recruitment through the OEM • C&I customer recruitment through sales representatives − Commercial sales teams adding ADM to suite of solutions ► Still challenges (in evolving markets with new technology) in developing attractive integrated offers for customers that also provide system value − New technology keeps coming, features and costs evolving − See value stacking and notes on equity (earlier slides) www.ma-eeac.org | 10
EEAC #3: Develop a goal for ADM that is separate and distinct from goals for traditional EE/passive demand reduction. Plan, track, and report the capabilities, performance, and costs of active demand management separately and in a manner that will enable development of and tracking towards the ADM goal. ► Achieved – there are separate and distinct goals for ADM in the 2019-2021 Plan (per term sheet): Active demand savings of 200 MW summer and 50 MW winter Total demand savings (including active demand) of 665 MW summer and 500 MW winter www.ma-eeac.org | 11
DPU-APPROVED ADM PLAN FOR 2019-2021 (INCLUDING STORAGE) Active Demand Management (ADM) for 2019-2021, Total ADM Including Storage -- Compliance Filing Summer Winter Sectors Annual Capacity (MW) Annual Capacity (MW) 2019 2020 2021 2019 2020 2021 A - Residential 8.3 13.5 17.3 1.0 2.0 3.0 B - Income Eligible - - - - - - C - Commercial & Industrial 94.8 142.9 192.4 15.4 32.0 44.5 Grand Total 103.2 156.3 209.7 16.4 34.0 47.5 Source: PA statewide data tables, 2019-2021 Plan compliance filing, 02/19/19 CLC may pursue active demand offerings (included in above) once agreement with Eversource is reached CLC enhanced storage (storage system and performance) is not included in above (not approved by DPU) www.ma-eeac.org | 12
APPROVED STORAGE PLAN FOR 2019-2021 (EVs INCLUDED) Active Demand Management (ADM) for 2019-2021, Storage and EVs Only -- Compliance Filing Summer Winter Sectors Annual Capacity (MW) Annual Capacity (MW) 2019 2020 2021 2019 2020 2021 A - Residential 0.4 2.4 3.5 0.4 2.4 3.5 Storage Targeted Dispatch - - - - 1.9 2.9 Storage Daily Dispatch 1 - 1.9 2.9 - - - EV Load Management 2 0.4 0.5 0.6 0.4 0.5 0.6 B - Income Eligible - - - - - - C - Commercial & Industrial 0.5 15.1 27.1 2.5 7.1 11.1 Storage Targeted Dispatch 3 0.5 5.0 10.0 2.5 7.1 11.1 Storage Daily Dispatch 1 0.0 10.1 17.1 - - - Grand Total 0.9 17.5 30.6 2.9 9.5 14.6 1 Per DPU, daily dispatch is demonstration in 2019; expected to be full offering in 2020-2021 2 National Grid plans to claim savings for EV load management, vehicle control 3 Eversource only for C&I storage targeted dispatch in summer CLC enhanced storage (storage system and performance) is not included in above (not approved by DPU) www.ma-eeac.org | 13
EEAC: PLAN, TRACK, AND REPORT ADM COSTS AND PERFORMANCE ► Achieved – In addition to an active demand management (ADM) performance goal, the costs, impacts, and economic benefits of active demand management activities will be analyzed and quantified, and the planned and achieved benefits will be reported as part of total portfolio benefits. ADM ADM Economic ADM Costs and Performance Value Quantified Impacts Reported Goal(s) in Benefits and in Data Tables and Cost-Effectiveness MassSaveData www.ma-eeac.org | 14
Thank you | 15
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