DEMAND RESPONSE BY MEANS OF SMART
GRID
Dr. Yuval Beck
SEEEI Jerusalem 24/10/2013
www.hit.ac.il/sites/energy-center
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SEEEI Jerusalem 24/10/2013
DR- DEFINITION
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“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”
Federal Energy Regulatory Commission
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SEEEI Jerusalem 24/10/2013
OUTLINE
Smart metering implementation and the suplier
 Regulatory Support
 End user response and acceptance
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FUNCTIONALITY OF SMART METERS
BASED ON VARIOUS PILOTS
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Measurement of consumption and production (when applicable)
Remote steady reading by demand.
Tariff, historic consumption, comparative parameters display.
Measurements or load behavior graph storage (next demand,
communication failure)
Remote connection/disconnection and load limiting.
Remote firmware upgrades
Transmit of Power quality report by standards (IEC 60150 and more)
Communication abilities with other meters, communication
concentrator, other devices and appliances.
Prepay ability (when applicable)
Self display and transfer of meter data to external display such as ipad,
tablet, home display.
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POTENTIAL BENEFITS FOR PRODUCERS
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Dynamic pricing – by detailed information of consumers
energy consumption.
Personalize tariffs.
Demand response services- knowledge on consumption
leads to energy conservation.
Remote updating meters in minimum time- fast network
adjustments.
Accurate data leads to less complaints by consumers->
efficient and cost effective service centers.
Record management efficiency- producers pay by actual
client consumption and not by estimated load profiles.
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POTENTIAL BENEFITS FOR DSO
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Better data on consumers which leads to better service and various
services.
Efficiency in distribution system operation.
Fault detection by meters for higher reliability.
SMS/Radio/Internet communication with customer for announcements
(maintenance, faults etc..)- can be bidirectional.
Fast recovery time
Losses and electricity theft recognition- (in Sweden and Italy acted as
main incentive for smart meters implementation).
Phase frequency and voltage monitoring for stability improvement
Better management of network assets.
Smarter investments.
Third party interface for DR services (acceptance, regularory, privacy,
security issues)
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OTHER BENEFITS
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MUC-Multi Utility Communication - Controller
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SECTURITY AND PRIVACY
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REGULATION PURPOSE
For
smart
and
safe
implementation of Smart Grid,
it must be economical for the
consumer as well as the DSO
and TSO (Same in Israel).
Enabling that while protecting
privacy, and consideration in
energy efficiency, requires
adjusting and new regulation by
the state.
These regulations contribute to
a healthy framework in this
field.
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GOVERNMENT REGULATION
NEEDS TO SUPPORT
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Enabling energy providers to make profit from additional “smart” energy services.
(energy efficiency consulting, applications, etc.)- not dependent only on KWh sales.
Allow contracts for appliances and load automatic disconnection- usually by financial
incentive
Return of investment policy- such as infrastructure by fixed price in the bill and for the
meter and additional equipment by energy price.
Exclusive ownership of the consumer data by the consumer- can give permission to
third parties.
Implementing smart metering at all consumers for maximizing the system’s abilities.
Standardization for smart metering , the communication and the topology
Net metering- for prosumers.
Aggregation of demand- for flat consumption
Creation and supporting new programs and products
Give incentives to energy and infrastructure
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REGULATORY EXAMPLES IN THE USA
CALIFORNIA
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215 programs from 2006-2008 for
energy efficiency
2 Billion$, 1685MW and 7367MWh
reduction+ no need for two
500MW generation units.
75 million$ reward to the electric
company for energy reduction.
2010-2012 investments of 3.1
billion$ for reduction of 7000GWh
and cutting 3 500MW generation
units.
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MASSACHUSETTS
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Separation between the income from infrastructure to
sales profits- enabling the insertion of new generation
companies with clients.
120 million $ for financing DR programs
Green Communities Act- the separation law between
infrastructure and energy provider (by 2012)
Public education programs in DR and energy efficiency
and collaborating with the University of Massachusetts
in a experimental educational program.
Financial incentive for reduction of peak load and the
average consumption by 5%
energy pay and save program which enables
consumers to buy energy efficient appliances and pay
to the infrastructure company in payments in their bill.
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NEW YORK
separation between infrastructure
and energy provider
 Incentives to reliable and secure
infrastructures and fines when
they are not.
 Over 1500 energy reduction
projects for over 1 billion $ 946GWh reduction. (schools,
government buildings, public
buildings…)
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‫‪SEEEI Jerusalem 24/10/2013‬‬
‫‪TEXAS‬‬
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‫‪18‬‬
‫אין חיוב מטעם המדינה להתקין מונה חכם‪.‬‬
‫מצד שני‪ ,‬עידוד חברות התשתית להטמיע אותן ולהחזיר את ההשקעה בחיוב‬
‫קבוע בחשבון הלקוחות‪.‬‬
‫דוגמה‪ :‬חברה אחת חתמה על הסכם להתקנת ‪ 3‬מיליון מונים חכמים באזור‬
‫צפון טקסס עד שנת ‪ ,2012‬כאשר לקוחות ביתיים משלמים ‪ 2.35‬דולר לחודש‬
‫במשך ‪ 11‬שנים על מנת להחזיר את ההשקעה בהתקנה‪.‬‬
‫דוגמה‪ :‬חברה הפועלת ביוסטון התקינה ‪ 145000‬מונים חכמים בשנת ‪,2009‬‬
‫עוד ‪ 500000‬יחידות ב‪ ,2010-‬ועתידה להגיע ל‪ 2.2-‬מיליון יחידות בסיום‬
‫ההתקנות‪ .‬התקנה זו מוערכת בכ‪ 640-‬מיליון דולר‪ .‬על מנת להחזיר את‬
‫ההשקעה‪ ,‬הלקוחות משלמים ‪ 3.24‬דולר לחודש בשנתיים הראשונות‪ ,‬ולאחר‬
‫מכן ‪ 3.05‬דולר לחודש במשך ‪ 10‬השנים העוקבות‪ .‬הסכום הכולל שמשלם כל‬
‫לקוח במשך ‪ 12‬השנים הוא ‪ 443.76‬דולר‪.‬‬
SEEEI Jerusalem 24/10/2013
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QUESTIONS TO BE ASKED BEFORE SMART GRID IS
IMPLEMENTED (THE CONSUMER SIDE)
SEEEI Jerusalem 24/10/2013
What are the new services for the consumer
 Is the consumer interested in these services
(what benefits will he get?)
 Is the demand (consumers) response will change
its consumption habits ?
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WHY ARE PEOPLE SKEPTIC?
Mainly due to misunderstanding.
 Science fiction- robots control humans
 Privacy and security
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RECOMMENDATIONS FOR
HAPPY CONSUMERS
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Make sure that consumers can benefit from the cost
savings enabled by the smart grid in a fair and appropriate
manner.
Government should take ultimate responsibility for
ensuring that the smart grid is secure. Honesty and
transparency are key and consumer engagement is
important to manage consumer concerns.
Consumers must be able to make informed choices and
have meaningful control over their data and its use.
Research on consumer behavior in Smart Grid (pilots)
Public education
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