Demand Response
and the
Utility of the Future
Phil Davis, Senior Manager
Demand Response Resource Center
Schneider Electric
(404) 567-6090
http://blog.schneider-electric.com/main/category/smart-grid/
www.schneider-electric.us/go/utility
What is “Smart Grid”
• A Marketing Term (IEC)
• Communications enabled Electric Grid (lots of
people)
• Interactive (Silicon Valley)
• Health Hazard (Tin Hat Crowd)
• A Colossal Bore (The Americal Public)
• The strongest civilization altering force since sliced
bread (me and all the smart people)
What is “Demand Response”?
US DOE Demand Response Definition:
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 times of high
wholesale market prices or when system reliability is
jeopardized.
US Federal Position:
“It is the policy of the United States that time-based pricing and
other forms of demand response….shall be encouraged, the
deployment of such technology and devices….shall be facilitated,
and unnecessary barriers to demand response participation in
energy, capacity and ancillary service markets shall be
eliminated.”
– US Energy Policy Act of 2005, Sec. 1252(f)
What is “Demand Response” Really?
Electrons obey the laws of Physics:
They travel to ground over the paths of least resistance. Our
job is to get them to do a little work along the way without
wreaking havoc, which they like to do.
Demand Response is how we do that:
Everything about an (intentional) electron’s journey is shaped by
someone’s desire to accomplish a goal. Those goals are determined by
the vast community of electron users; i.e., customers. In that sense,
everything a utility does is Demand Response.
Now is the time to re-design demand response to meet societal and
investor goals of efficiency and environmental stewardship
What does Energy Efficiency
mean on a Smart Grid?
• Envelopes and Distribution are as efficient as
possible until the next kWh of savings is more
costly than a kWh of generation
• Microgrids
• Conservation Voltage Reduction
• Robust interactivity (device to device or grid to
grid)
• Efficiency defined outside of economics is doomed
to failure
Market Drivers
Growing pressure
on infrastructure
Sustainability and
Carbon Management
Rising consumption
Volatile Wholesale
Energy costs
More ambitious
environmental goals
Water shortages
Fiercer global
competition
Tighter economic
pressure
Regulatory
demands
Complex sourcing
options
We need to solve these challenges
to make the difference!
Economic Driver #1: Congestion
Economic Driver #2: Reliability
Economic Driver #3: Energy Costs
Commercial Building Facts:
• Owner: Rockefeller Group Development Corp.
• Location: 1221 6th Ave, Mid Manhattan NY
• Peak Load: 12.5+ MW
• Size: 49 stories plus 4 sub floors and “attic”
• Tenants: Residential, Data Center, Restaurants,
Commercial Offices
• Building Automation System – TAC Continuum
• DR – Originally enrolled 600kW in NYISO
ICAP demand response program
Integrated Efficiency Planning
● Environment
● Procurement
● Reporting (SOX)
● Efficiency
● Safety
● Reliability
● Stability
From Left Field: The Utility of the Future
Distributed
Operator
Capital Asset
Manager
Monolithic
Central Plant
One Way
Silo’d
Functions
Spends Money to Make Money
Efficient Operator
Automated
Customer
Engaged
Banker
Serves Customers to Make Money
Inevitable Changes
• Infrastructure and service, not energy, become revenue
drivers
• Electrical attributes become the products
• Regulatory regime changes
• Distributed energy sources and microgrids
• Key Standards adoption=business efficiency
• Load shapes will matter
Designing for today’s energy environment will limit the
life of business investments
Energy Efficiency=Economic Efficiency
THANK YOU!
Phil Davis
Schneider Electric
Phil.Davis@Schneider-Electric.com
404-567-6090
1999
Groupe Schneider becomes
Schneider Electric,
focused on Power & Control
Power &
Control
1996
Modicon, historic leader in
Automation, becomes a Schneider
brand
Steel
Industry
1991
Square D joins
Groupe Schneider
1988
Telemecanique joins Groupe
Schneider
1836
Creation of Schneider
at Le Creusot, France
19th century
1975
Merlin Gerin joins Groupe
Schneider
20th century
2008
Acquisition of
Xantrex, leader in renewable
energy solutions
2007
Acquisition of
APC corp.
Energy Management
2003-2008
Targeted acquisitions in wiring
devices and home automation
(Lexel, Clipsal, Merten, Ova, GET,
etc.)
2005
Acquisition of
Power Measurement Inc.
2003
Acquisition of
T.A.C
2000
Acquisition of
MGE UPS Systems
21st century