Data Acquisition and M&V for DR & EE Programs Parag Kulkarni Dr. Rahul Walawalkar CMVP, CEA, IGBC-AP CEM, CDSM, CSDP Manager, DR Program VP, Emerging Tech & Markets Presentation at the Fourth Meeting of the "Utility CEO Forum on DSM“ on 13 th Dec 2013 at New Delhi
Company Overview DSM & Demand Response M&V in DR & EE Programs Case Studies
Customized Energy Solutions We maximize value of existing and emerging electric infrastructure through active resource management.
Experience in North America and India Customized Energy Solutions helps over 300 clients across all 7 competitive electricity markets in USA and India In 2010, Customized launched India operations Manages over 500 MW of DR program in US and launched India’s 1 st DR program for Tata Power with 25 MW DR
Section DSM, DR AND M&V
Demand Side Management and Demand Response In the electric industry, the term ‘Demand Side Management’ (DSM) refers to programs that attempt to influence customer consumption patterns of electricity to match current or projected capabilities of the power supply system. DSM consists of two major components: Demand Response (DR) and Energy Efficiency (EE), which is also considered as conservation. Definition of Demand response : Changes in electric usage by end ‐ use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at time of high wholesale market prices or when system reliability is jeopardized
Need for Demand Response
Short Run Marginal Cost Curve & Price Duration Curve
Framework for DR Benefit Analysis LMP* 9
Types of DR Programs
Why Demand Response With Energy Efficiency ?? • For Customer: • DR can result in an appreciable reduction in system marginal costs of production during peak time, which result in long term cost reduction for consumers. • DR also presents a way to earn added revenues for implementing EE measures and having flexible controls incorporated in operations; • Simultaneously helps to improve grid reliability • In spite of such financial benefits, DR participation in PJM programs was only 0.2% during the all time system peak in 2006. • There has been a recent growth in DR participation in Emergency DR programs that provide capacity payment for peak load reduction • Significant opportunities still exist in integrating energy efficiency and flexible control capabilities for maximizing economic & ancillary service DR participation
It’s A Team Effort: Win -Win-Win Customer / Energy Manager • Main beneficiary and determines the operating parameters • Facilitates execution for both EE and DR projects • Can communicate new opportunities with management to determine ways to maximize participation Utilities / ESCO / Performance Contracting Company • Provides technical, engineering and financing expertise • Can use additional DR revenue to expand scope • Evaluate investments based on incremental costs, that can add significant capabilities for DR participation • Provide a technical bridge between customer goals and market opportunities identified by CSPs Curtailment Service Provider • Provides functional & market expertise as well as interface to wholesale electricity markets
Benefits of Using CSPs in DR Process by Utilities / ESCOs • CSPs are registered market participants in the ISOs • Involves paying ISO registration fees, • Employing and training staff to know ISO rules and regulations • Fulfilling credit requirements for market participation • Verify that projects meet the ISO program criteria to ensure payment • ISO based programs have evolved over past decade and still undergoing changes • important to be an active market participant to maximize value • CSPs can provide in depth market knowledge and domain expertise to maximize the revenue potential from DR participation • Certain CSPs can also provide 24*7 operational support and control capabilities that could be vital in optimizing revenues from economic and ancillary service programs • It is important to choose the right partner to compliment the skills available within ESCOs and ensure that the goals of all partners are aligned to maximize benefits for all
Integrating EE & DSM options
Role of M&V in DR Customer Base Line (Weekday high 4 of 5, Saturday high 2 of 3 and Sunday/Holiday high 2 of 3) Lookback window = 45 Days (may be extended up to an additional 15 days) Exclude event day = like day type 25% average event period usage threshold Like day prior to event day is used Self schedule notification hours must align with settlement hours 15
SecureNet-RT Synchronous Reserve Participation
Demand Response and M&V • For any of the type of DR program employed, all require analysis to estimate the demand reduction. • The estimate is the difference between what the customer actually used and what that customer would have used had the program not been enacted. • What the customer would have used is referred to as the baseline (CBL) and is key to effective Measurement and Verification. • Baseline generation is an evolving process with a limiting factor being data availability. • New methods of establishing baselines and measuring their accuracies will continue to grow as Demand Response evolves utilizing the advanced technologies that will be enabled by Advanced Metering Infrastructure (AMI).
Demand Response and M&V • Measurement and Verification (M&V) refers to the application of appropriate statistical and load research techniques to measure and verify the load reduction impact resulting from the utilization of a Demand Response program. • Events may last for one or more hours • The measurement typically quantifies the entire event period, and may also quantify the reduction during the peak hour. • Measurement can be reported in MW, hourly kW, peak kW, etc. and may further be reported in a variety of intervals including 15, 30, 60 minute and total event duration. • Measurement quantifies this load reduction and Verification provides evidence that the reduction is reliable.
Quantification of Load Reduction Value
Quantification of Load Reduction Value.. Baseline (CBL) – The amount of energy the customer would have consumed in absence of a signal to reduce. Actual Use – The amount of energy the customer actually consumed during the DR event period. Load Reduction ‐ The mathematical difference between the Baseline and the Actual Use. Baseline – Actual Use = Load Reduction
Baselines (CBL) • Baselines can be divided into three different types. - Historical – Based on some market relevant usage of power during a historical period - Statistical – Based on a regression analysis of load data - Calculated- Based on a previously agreed upon calculation that has been shown to accurately predict usage. - Generation- Certain programs may use the meter data from behind the meter generation as a proxy for how much load was dropped
Some CBL approaches used for individual customers • Day Matching • Previous Days approach • Average daily energy use approach • Proxy day approach • Baseline adjustments • Weather sensitivity • Morning adjustment • Regression methods
Some thoughts… • Many types of Demand Response Programs are currently in place. • The M&V of a Demand Response event is and will continue to be a subject that requires more than a single methodology that can be applied to these wide range of programs. • A proper selection of baseline load curves of customer use can provide the similar shape for ‘ what a customer‘s load would have been ’ in absence of a demand response event.
Tata Power Demand Response Program • Customized Energy Solutions is working as an aggregator and service provider for implementation of Demand Response Program for Tata Power Company- Mumbai • Program is running for more than 2 years now, and achieved participation of @ 40 C&I facilities • Aggregated More than 20 MW DRP and demonstrated 12 MW load curtailment. • Program received “Innovative Energy Service Award - 2012 ” by CII at national level .
CBL Methodology used Baseline established as highest 4 of last 5 working days excluding weekends, holidays and prior event days
Cumulative DR performance Report 70 60 Cumulative DR 50 40 MW 30 20 11.7 11.5 10.5 10.3 10 0 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 Load curtailed(MW) Total CBL -MW Total Event day load - MW
LCM- Staggering of pumping 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 09:00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 Customer Base Line (MW) Actual Customer Load (MW)
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