Smart Consumption
Solutions
Siemens Industry, Inc. Building Technologies
Agenda
• What exactly is the Smart Grid?
• Smart Buildings and Smart Consumption
• Intelligent Load Management (ILM) the Next Generation in
Demand Response
• MicroGrids
• LEED Points
WHAT EXACTLY IS THE
SMART GRID?
Smart Consumption is driven by US market trends
Green/Energy - part of
corporate strategic planning
 Motivating factors – energy cost savings, enhanced
public image and attracting new customers
 LEED certification
Buildings need to integrate
energy generation capabilities
 Alternative and renewable energy
 Distributed generation and micro-grids
 Net Zero Buildings: e.g. CA legislation
Governments mandate
energy efficiency
 15% energy reduction by 2015
 Cut emissions 28% by 2020
 DoD new construction after 2015: Net Zero Energy
Green/Energy Efficiency
is attractive for investment
 Green power is the #1 Venture Capital (VC) investment
beating IT and Biotech with 27% of all VC investments
Decision makers are focused on
energy efficiency - $ reduction
 Decision makers attention up 71% year-over-year
 Buildings consume 40% of worldwide energy
Smart Grid
 Dept of Energy $3.4 billion investment in technology
 New rules and business models - aggregators
Smart Grid:
Yesterday and Today
Before
 One-way limited communication
 Few sensors and analog control
 One-way power flow
 Little to no consumer choice
 Centralized generation
 Reactive maintenance
 No electric vehicles
 Limited usage transparency
Smart Grid: Tomorrow’s Integrated Grid
 Bi-directional and instantaneous
communication and metering
 Pervasive monitoring and digital control
 Self-monitoring & high visibility
 Bi-directional power flow
 Many consumer choices
 Millions of electric vehicles
 Condition-based maintenance
 Applications
 Proliferation of numerous applications
After
Power
Information
TODAY
The transition has begun, with peak-demand management (demand
response, ILM), and dynamic pricing (e.g. critical peak pricing programs)
Smart Grid adds full communications,
intelligence and transparency to the grid
Grid management
Generation
Transmission
Distribution
Virtual Power Plant
Consumption
Smart Grid - Smart Consumption - Smart Buildings
Intelligent Load Management (ILM)
Optimizing





Price of electricity supply
Energy storage
Pricing
CO2 reduction
Energy efficiency
E-car integration
Balancing the grid
 Avoid investments in new power
plants
 Increase power quality
 Integrate volatile renewable
energy
 E-Car charging
P
Supply
Price
reduction
PDR
Peak
demand
reduction
QDR Q
Smart Consumption
Demand
Supply
Consumption
to grid
0h
Consumption follows Generation
There is no Smart Grid without Smart Buildings
24h
Quantity
Smart Building
Applications
1
3
1 Two-way communication
with utilities
2 Proactive energy
management / smart
consumption
2
3 Energy sources with
onsite generation assets
4 Storage capacity for
added flexibility
5
5 Active carbon
management
4
Smart Building: Infrastructure
Smart Building
Smart grid infrastructure
Control strategies
Onsite generation
Demand
Consumption
Consumption
to grid
to grid
Base load
Demand
0h
Supply
24h
24h
0h
Smart consumption infrastructure
OpenADR
ZigBee
BACnet
Storage
Transparency infrastructure
Energy
management
applications
Efficiency built into building systems and integration into the Building Automation System
Smart Building: Monitoring, Analysis and Reporting
Analysis & Reporting
Facilities / Engineering
Primary
Users
Primary
Users
 Building Performance
Dashboard
 Energy Monitoring &
Control (EMC)
−Remote database
−Historical data
−Web based
−Integrated Data
Sources
−Executive Dashboard
−Detailed Analysis
Facilities / Engineering,
Energy / Utilities +
Financial, Green /
Sustainability
Public Interface
 Built for public viewing
 Web based
Primary
Users
Real-time Monitoring
Visitors, Employees,
Occupants, General Public
INTELLIGENT LOAD MANAGEMENT (ILM)
THE NEXT GENERATION OF DEMAND RESPONSE
Why do we need demand response?
An oversold or undersold flight is similar to the electrical grid at capacity….
Every Person who gives up their seat is a
“Negawatt” and will receive compensation
for giving up a seat.
In other words the utility company will pay
you to reduce your load during peak
demand
Intelligent Load Management
 Leverages existing BAS equipment to
generate cash payments through
automated load management
 Allows building operators to participate in
Demand Response, Critical Peak Pricing
and Smart Grid programs through local
utilities
 Balances multiple factors:
 Corporate standards
 Efficiency
 Financial
 Site conditions
 The technology leader in multi-site load
aggregation with proven financial
results
<1 Minute Response Telemetry
How does it work?
Completely Automated DR Solution
An event notification is received via a
change in event status from the Demand Response
Automation Server
Our Intelligent Software Aggregation Engine
acknowledges an event is being called
Our Aggregation Engine relays signal to
onsite communicators and notifies the
customer simultaneously
Within 1 minute of initial dispatch, load
begins to ramp down at customer sites
- Siemens high-tech
approach facilitates reliable
participation in short notice
programs.
- Due to our real-time
visibility Siemens is able to
shield the customer, and
itself, from penalty risk.
We work to make sure your building stay within set
parameters to minimize impact and maximize revenue…
Buildings can provide capacity to the grid during peak
events- by reducing consumption where it is curtailable
for a period of time. This capacity is valuable, and we
help our customers to make the most of it.
$
In many areas, “ratchet clauses”
increase a customer’s electricity rate for
the whole year if their demand exceeds a
given kW threshold at any time.
Peak demand “event” on the grid:
- kWh prices are high (dynamic pricing, CPP programs)
- Utility pays bonuses to consumers who can curtail load.
Basically, power can be “sold back”
Real Time Monitoring Dashboard for Demand Response
Real Time Monitoring Dashboard for Demand Response
Comparison of ILM to Traditional Demand Response
Traditional DR
Manual Demand
Response
Description
 Labor-intensive
 Manually turn off
or change set
points on each
asset node
Siemens Intelligent
Load Management
 No human interaction
 External
Communication signal
 Overrides of nodes or
systems are possible
 Logic that sits at a layer above
Fully Automated Demand
Response system
 Override of node or
systems are possible
 Continuous management of
load
 Unreliable
 Process dependent
on human interaction
and ability to make
changes at a given
point in time
 Verifiable
 Overriding nodes
hard to project / plan
 Verifiable
 Diversified, redundant
and managed
 Load balanced across
multiple sites / enterprise
 Very slow
 Possibly slow
 Fast

 Poor, capacity not
reliable
 Poor, capacity not
 reliable
 Moderate, reliability is
questionable or is
discounted due to
possible overrides
 Efficient, loads are managed and
reliable which reduces the
discounting of capacity
or price
dependent on
human interaction
and ability to make
changes at a given
point in time
Pricing
Efficiency
Fully Automated
Demand Response
 Pre-programmed
response is initiated
by a person
 Person uses
centralized control
system
Reliability of  Unreliable
 Process
Capacity
Speed
Semi-Automated
Demand Response
ILM ™
Fast, 2 minutes or
less
ILM Technology Features and Benefits
Benefits
Unique Technology Features
 New source for incentives
 100% automated response
 Intelligent automation
 No on-site personnel needed
to implement response
measures
 Reduced energy expenses
 Earn LEED points
 Improved Corporate Social
Responsibility (CSR)
 Carbon negative power
generation
 Capacity on-demand
 Internet based
 “Light Touch” – loads are shed
gradually and dynamically,
according to customer priorities
DYNAMIC BUILDING/CAMPUS OPTIMIZATION
WITH
MICROGRIDS
Large campus customers are seeking advanced solutions
Stages in energy infrastructure maturity
Stage 1
% of market
Focus on core
operations
75%
Stage 3
Energy reduction using
advanced and/or basic
dynamic strategies
Stage 4
Continuous
demand/supply
optimization based on
internal & external factors
50%
30%
15%
Stage 2
5%
Energy savings via
conventional demand
side energy strategies
Source: Customer interviews, Smart Consumption – large commercial team
15%
2015
5%
2010
Microgrids have higher reliability, economic & ecological
benefits
Functions and Benefits of Microgrids
A microgrid power system
Key Functions
• Clean electricity, heating and cooling
generated by local energy source, e.g. solar,
geothermal, natural gas, etc.
 Realize high level energy self-sufficiency
through advanced energy management
system
 Continuous operation in islanding mode when
external network faults
 Optimal energy management achieve both
economic and ecological targets
Benefits
 Improved energy efficiency
 Integrated renewable power generation
 Supply and demand balancing
 High electricity reliability
 Safe, easy-to-operate and modular solutions
that may be upgraded as required
The Smart Energy Box allows buildings or groups of
buildings to react flexibly to the Smart Grid
• Uses Energy Plus to simulate alternative
control strategies / schedules, then
chooses the best control strategy
• Communicates with the Smart Grid,
reacting to Dynamic Pricing and
Demand Response signals
• Communicates with field devices via
BACnet and plug-load protocols (JADE)
• Keeps the building within operational
parameters
• Integrates weather forecasts and
occupancy inputs into its optimization
• Allows the building to re-schedule
activities dynamically in response to
changes in weather or energy cost
• Pilot projects at UC Berkeley and
Carnegie Mellon, US Air Force Academy
Higher Education Building Technologies Council
DEMAND RESPONSE
AND LEED
Points Available
Demand Response Credit
Credit
Points
Description
PC8 (LEED 2009 NC &
EBOM)
1
Manual, Semi- or Fully-Automated Demand Response
2012 NC – Case 1,
Option 1
1
Manual Demand Response
2012 NC – Case 1,
Option 2
2
Semi-or Fully-Automated Demand Response
2012 NC – Case 2
1
If no DR Program in area, have in place infrastructure for future
DR or Real time pricing program when it becomes available
2012 EBOM – Case 1,
Option 1
1
Manual Demand Response
2012 EBOM – Case 1,
Option 2
3
Semi-or Fully-Automated Demand Response
2012 EBOM – Case 2
1
If no DR Program in area, have in place infrastructure for future
DR or Real time pricing program when it becomes available