Customer Side of the Grid: Architecture Options
Harvey Michaels, Scientist/Lecturer
DUSP Environmental Policy and MITEI
617-253-2084 hgm@mit.edu 9-326
Instructor:
Enabling an Energy Efficient Society
Energy Efficiency at MIT

Expanding Coursework – Energy Minor

Integrated Technology, Economic, Management,
Behavior, Policy Research:
–
2050 Resource Assessment
–
Customer Side of Smart Grid: Architectural Options:
•
•
•
•
–
–
Smart Grid or Smart Citizen?
Public or Private Networks?
How to maximize behavior impact
How to maximize market innovation
Internet Innovation:
•
I2EE-based buildings
•
Web 2.0 GIS/Community Systems
Federal/State/Utility Program Design:
•
Utility/Community/Campus Partnerships
•
Zero Net Energy buildings
Information and pricing as an efficiency/DR option:
Providing consumers with energy diagnostics, feedback, control
The Demand Response Issue:
The Load Duration Curve Continues to Erode
With the continued penetration of central air
conditioning systems, the top 60 hours of the year
now account for 10-15 percent of the system peak
29,000
27,000
25,000
23,000
MW
21,000
19,000
17,000
15,000
13,000
11,000
9,000
1
501
1001
1501
2001
2501
3001
3501
4001
4501
5001
Hours per Year
5501
6001
6501
7001
7501
8001
8501
Smart Grid: One Network or Three?
SCADA: “System Control and Distribution Automation” of G,T& D
–
to improve system efficiency and performance and provide
resilience to failure.
AMI: “Advanced Meter Infrastructure”
–
automates the meter read process,
–
increases the frequency of reads to at least hourly,
–
and possibly communicates two-way between utility and meter
for demand response (DR) services.
LAN: “Local Area Networks” within buildings
–
communications (powerline or wireless) between devices
–
managing software process (in-home dedicated server, utility
managed off-site, or Internet).
–
consumer display device (kitchen, thermostat) or multipurpose display (TV, computer, phone).
The Customer Side of Smart Grid : 2 strategies/architectures
1: Customer-Controlled Architectures

Price-based demand response, using time-differentiated
rates, which requires AMI.
–
Vision: Customers view data, make choices, in time
automatic response by customers thermostat and other
devices.
2: Utility-Controlled Architectures

Push-button Control-based demand response – The
Utility monitors and controls end use equipment.
–
Vision: Generation, transmission, distribution, and end
use equipment as part of a single system.
–
Interval meter reads not essential.
Utility Private Network Architecture – utility provides
meter-to-devices communication and control
MDM/Head-end
Utility-side
Utility-network
devices in home
Customer
Third parties or utility “Energy Desks” control
registered loads
Customer 1
Customer 2
Customer 3
Customer 4
Utility
Customer 5
Customer 6
Customer 7
Customer 8
Customer 9
Customer 10
Customer 11
Customer 12
Customer 13
0%
50%
100%
150%
0%
50%
100%
Customer 14
Customer 15
Customer X
0%
50%
100%
0% RISK
150%
100% RISK
0% RISK
150%
Politics of the “Smart Grid”
– Does Society want Utility Control?

End use equipment is visible and controllable by the utility or
third party–

“Utility control” is more dispatchable and therefore can
replace spinning reserve
….but some find it kind of scary.
Resistance is Futile
Prepare to be Assimilated
Customer-responsive Architecture =
Providing consumers with energy diagnostics, feedback, control
refers to systems for optimizing consumers’ end-use needs
(especially air conditioning, heat, hot water)

based on weather, schedules,
and time differentiated costs.
Time-differentiated rates are more fair,
and some would argue inevitable.
Customer Responsive Systems
work 24/7, providing efficiency
as well as peak demand response.
AMI needed for Time-Dependent (dynamic) Pricing
Higher prices during
Critical Peak Events
~ 50-150 hours/year
Illustration of Residential CPP Rate
1.2
Existing All-In
CPP on Critical Days
1.0
Rate ($/kWh)
CPP on Non-Critical Days
0.8
0.6
Discounted price during
off peak hours
~ 7,700 hours/year
0.4
Higher TOU prices
during peak hours
~ 1,000 hours/year
0.2
0.0
0
2
4
6
8
10
12
14
Hour of Day
16
18
20
22
24
Customers respond to CPP price signals…
Percent Reduction In
Peak-Period Energy Use
Peak-Period Reduction on Critical Peak Days
14
13.1
11
12
11.9
12
Anaheim Peak
Time Rebate
PSE&G
4.6:1
6:1
10
8
6
4
2
0
CA SPP
Price Ratio:
4.1:1
AmerenUE
4:1
Smart Grid AMI/pricing helps, but consumers respond
more with information and/or controls
Critical Peak Impacts By Rate Treatment
Average Critical Peak Day – Year 1
47.4%
Peak Load Reduction
50%
34.5%
40%
30%
20%
12.5%
10%
Hottest Critical
Peak Day *
4.1%
TOU
Critical
Peak
Variable
With
Automated
Controls
Critical
Peak
Variable
With
Automated
Controls
Critical
Peak Fixed
0%
Time of Use
TOU
CPP-F
CPP-V
CPP-V
Source: Roger Levy, Statewide Pricing Pilot Summer 2003 Impact Analysis, Charles Rivers Associates,
Table 1-3, 1-4, August 9, 2004.
Customer-Controlled, Public Network Architecture:
Utility’s
Web Workspace
MDM
CRM
Utility-side
Device
Workspace
Consumer-side
Vision - Applications for the Smart Consumer

Utility, thermostat, appliance, Google, etc.
make app.

View on home PC, work PC, TV, cell phone (at
least until next year).
Application ideas:

Make my AC, water heater, pool pump,
refrigerator use pattern smarter.

Find out what anything costs to run.

Choose the best rate for me.

Choose a theme – understand the
consequences- do it (ie. More Green)

Sell a DR option.
Opportunity
Time for new leadership with capability,
courage, and imagination to shift paradigms
to develop greater energy efficiency!
…through strategic thinking about
technologies, policies, planning,
building methods, systems, software,
business models.
TIME IS SHORT
NEED IS HIGH
OPPORTUNITY IS GREAT