Fully Engaging Demand: Lessons and Insights from the Olympic Peninsula GridWise Demonstration

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Fully Engaging Demand Lessons and Insights from
theOlympic Peninsula GridWise Demonstration
Rob Pratt Pacific Northwest National
Laboratory robert.pratt_at_pnl.gov

• Demand Response Town Meeting
• June 2-3, 2008
• Washington, DC

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Going Beyond the Traditional Benefits Raising
Demand Response as a Strategic Asset

• The broadly recognized, traditional benefits of
  demand response (DR) are
• Minimize need for new generation transmission
  capacity
• Manage demand on peak days
• Mitigate wholesale price spikes
• The strategic opportunity is

• Engaging DR continually rather than
  intermittently brings many additional benefits,
  including carbon
• Maximizing return on the DR investment is simply
  good business (not just another peaking resource!)

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Olympic Peninsula Demonstration
Market
0 6 12 18 24
Clallam County PUD Water Supply District 0.2
MW DR
Internet broadband communications
Clallam PUD Port Angeles n 112, 0.5 MW DR
Sequim Marine Sciences Lab 0.3 MW DR 0.5 MW DG
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1 Continually Engage DR to Get Benefits at All
Levels of Grid

• Multiple benefits are the key to the business
  case for DR
• Wholesale provided demand reduction 15 less
  than the normal annual peak
• Transmission reduce transmission LMPs
• Distribution defer need for new capacity
• Ancillary services regulation and spinning
  reserve
• Energy efficiency from DR
• MV for energy efficiency and carbon reductions
• Real-time prices (RTP) provide the basis to
  continually and seamlessly engage DR to obtain
  multiple benefits

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2 RTP Focuses Customer Incentives When and
Where They Will Do the Most Good

• and in proportion to value they provide
• Given choice between CPP/TOU and RTP, residential
  customers will sign up for and respond to 5-min.
  RTP if provided
• Increased opportunity to save 10 on their
  electric bill
• Technology that makes it simple to automate their
  preferred response
• RTP incentives offer customers real, quantified
  incentive proportional to the degree regularity
  of their response
• Directly tying price/incentives to the value
  provided helps maintain appropriate, transparent
  financial equity between utility customers
• Readily incorporates backup/distributed
  generation, firm DR to localize and sustain
  distribution peak load reduction
• Help manage customer fatigue in multi-day events
• Limit high prices (they are generally the highest
  cost resource)

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3 Deploy DR in a Customer Friendly Manner

• Being customer friendly means that the customer
• Is offered a choice of contract types
  (fixed-price, CPP/TOU, RTP )
• Maintains control of all DR that has impact
  limits fatigue (i.e., reduced participation if
  called upon too often)
• Is offered a no-lose proposition compared to a
  fixed rate (e.g., by debiting a shaping charge
  against an up-front advance credit)
• Is provided a simple, intuitive, semantic
  interface to automate their response KISS
  principle highly applicable
• Translated to price elasticity
• parameters in virtual thermostat
• Is presented a unified engagement value
  proposition for DR efficiency

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4. Fast-Acting, Short-Term Low/No-Impact DR Can
Provide Ancillary Services

• Using DR to provide short-term (minutes)
  regulation is a simple, inexpensive byproduct of
  an RTP network
• Easily synchronizes natural load cycles to follow
  need for regulation
• Excursions from customers desired thermostat set
  points are small
• Minimal, if any, discomfort means cost to buy
  response are very low
• Autonomous under-frequency load shedding from
  Grid Friendly appliances was reliable and not
  noticed by users

Demand management to a capacity cap with
real-time prices eliminated load fluctuations for
12 hours!
normal fluctuations in load
Hour
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5. Leverage DR Network to Provide Efficiency and
Carbon Benefits

• Measure verify customer-specific efficiency and
  carbon savings with unprecedented precision, in
  real-time
• Use time-series, end-use detail to disaggregate
  load, provide much higher validity to savings
  estimates
• Provide remote diagnostics for AC, heat pumps,
  commercial HVAC
• Mine for site-specific DR and efficiency
  opportunities

• Use the regulation capability of DR to ease
  operation and expense of high penetration of
  intermittent wind resources, especially regulation

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Engaging DR Continually (Rather than
Intermittently) is the Key to Delivering More
Value with the Same Investment

• A DR network is a valuable asset and a
  substantial investment keep it productive
• Use it continually to maximize return on that
  investment
• Ensuring less obtrusive impacts and maintaining a
  sense of control by customers are pre-requisites
  for more continuous use