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Jacopo Torriti
FEEM-IEFE Joint Seminar
Università Bocconi
Milan
10 October 2013
Assessing the potential of Demand
Side Response in the residential and
non-residential sectors
Outline
• Demand Side Response (DSR) slow
to emerge
• Reasons: the case for DSR
• Potential contribution of DSR to
capacity mechanisms (non-
residential sector)
• Timing of activities of residential
customers in Europe
2
2m
4h0
1
2
3
6
DSR’s current role in Balancing STOR – breakdown
Focus on Non-BM “Demand Side” Services
STOR by Fuel Type - Aggregators Season 6.3
CHP, 69.3MW, 2%
Diesel, 118.8MW, 4%
Gas Reciprocating Engine,
68.0MW, 2%
Hydro, 69.3MW, 2%
Load Reduction, 83.8MW, 3%
Non-Aggregated, 2412.0MW,
87%
Aggregated Total,
409.0MW, 14%
NBM Demand Side breakdown
Bio-Diesel, 12, 0%
Biomass, 20, 1%
CCGT, 52, 2%
CHP, 72.25, 3%
Diesel, 493.25, 18%
Gas Reciprocating Engine, 68,
2%
Hydro, 69.25, 2%
Landfill gas, 12, 0%
Load Reduction, 139.25, 5%
OCGT, 346, 12%
BM STOR
1537MW , 55%
Non-BM "Demand
Side" STOR:
1284MW, 45%
Aggregated STOR Services
It appears that the majority of
services are ultimately provided by
generation resources
Diesel and open-cycle gas turbine
dominate
Aggregators are another key
aspect of the STOR market,
gathering smaller loads together
for National Grid to instruct
Diesel and other generation
technologies predominate but
biggest contributor of “true”
demand side resources
Load reduction programmes
• Interruptible
Programmes for large
industries
• DSR programmes: load
reduction/shifting from
commercial (and
residential) customers
Response
time
months
Hours /
minutes
DSR programmes in Europe: Examples
DSR: Remote load
control on hot water
space heating
DSR: Cold storage
facilities
DSR: Virtual power
plant
4
DSR slow to emerge (1)
5
6
DSR’s current role in Balancing STOR – breakdown
Focus on Non-BM “Demand Side” Services
STOR by Fuel Type - Aggregators Season 6.3
CHP, 69.3MW, 2%
Diesel, 118.8MW, 4%
Gas Reciprocating Engine,
68.0MW, 2%
Hydro, 69.3MW, 2%
Load Reduction, 83.8MW, 3%
Non-Aggregated, 2412.0MW,
87%
Aggregated Total,
409.0MW, 14%
NBM Demand Side breakdown
Bio-Diesel, 12, 0%
Biomass, 20, 1%
CCGT, 52, 2%
CHP, 72.25, 3%
Diesel, 493.25, 18%
Gas Reciprocating Engine, 68,
2%
Hydro, 69.25, 2%
Landfill gas, 12, 0%
Load Reduction, 139.25, 5%
OCGT, 346, 12%
BM STOR
1537MW , 55%
Non-BM "Demand
Side" STOR:
1284MW, 45%
Aggregated STOR Services
It appears that the majority of
services are ultimately provided by
generation resources
Diesel and open-cycle gas turbine
dominate
Aggregators are another key
aspect of the STOR market,
gathering smaller loads together
for National Grid to instruct
Diesel and other generation
technologies predominate but
biggest contributor of “true”
demand side resources
There it is
The majority of “Demand Side” reserve is still “Generation”
Macleod, L., 2012. Overview of National
Grid’s Balancing Services. National Grid.
6
The majority of “Demand Side” reserve is still “Generation”
6
DSR’s current role in Balancing STOR – breakdown
Focus on Non-BM “Demand Side” Services
STOR by Fuel Type - Aggregators Season 6.3
CHP, 69.3MW, 2%
Diesel, 118.8MW, 4%
Gas Reciprocating Engine,
68.0MW, 2%
Hydro, 69.3MW, 2%
Load Reduction, 83.8MW, 3%
Non-Aggregated, 2412.0MW,
87%
Aggregated Total,
409.0MW, 14%
NBM Demand Side breakdown
Bio-Diesel, 12, 0%
Biomass, 20, 1%
CCGT, 52, 2%
CHP, 72.25, 3%
Diesel, 493.25, 18%
Gas Reciprocating Engine, 68,
2%
Hydro, 69.25, 2%
Landfill gas, 12, 0%
Load Reduction, 139.25, 5%
OCGT, 346, 12%
BM STOR
1537MW , 55%
Non-BM "Demand
Side" STOR:
1284MW, 45%
Aggregated STOR Services
It appears that the majority of
services are ultimately provided by
generation resources
Diesel and open-cycle gas turbine
dominate
Aggregators are another key
aspect of the STOR market,
gathering smaller loads together
for National Grid to instruct
Diesel and other generation
technologies predominate but
biggest contributor of “true”
demand side resources
There it is
Macleod, L., 2012. Overview of National
Grid’s Balancing Services. National Grid.
DSR slow to emerge (2)
• Demand Side Response (DSR) slow
to emerge
• Reasons: the case for DSR
• Potential contribution of DSR to
capacity mechanisms (non-residential
sector)
• Timing of activities of residential
customers in Europe
7
2m
4h0
5
DSR slow to emerge: why?
• Limited evidence on DSR net conservation
effects
• High cost estimates for DSR technologies
and infrastructures
• No significant afternoon peak load (e.g.
from air conditioning)
• Regulation/current arrangements holding
back DSR?
8
Conservation effects:
meta-studies residential sector
9
It only makes economic sense if…
10
Energy flow diagram of the UK (adapted
from DECC, 2009)
11
Energy flow diagram of Committee on Climate Change
33/80 scenario for UK in 2050
Net demand duration curve before DSR
Net demand duration curve after DSR
Do current arrangements hold DSR back? (1)
15
National Grid, 2012. STOR Market Information Report: Tender Round 17.
< 10 min
Short Term Operating Reserve (STOR)
– “a service for the provision of additional active power from generation and/or demand reduction”
– 3MW or more of generation or steady demand Deliver within 4 hours from instruction
– Provide for at least 2 hours
– 20 hours recovery
– Ability to provide STOR at least 3 times a week
Do current arrangements hold DSR back? (2)
Load response of generation sites in the
telecommuncations industry
Distribution of load reduction (relative to baseline) during DSR trial
in the hotel sector
18
Sites without generators can also achieve significant reductions.
“Real” load reduction in the hotel sector based on TRIAD response of 98 hotels
mean TRIAD load reduction: 38%
Sites without back-up
generation (turn down
only)
Responsive, 38%
Residual, 62%
Sites with back-up
generation
Responsive, 82%
Residual, 18%
• Demand Side Response (DSR) slow
to emerge
• Reasons: the case for DSR
• Potential contribution of DSR to
capacity mechanisms (non-residential
sector)
• Timing of activities of residential
customers in Europe
20
2m
4h0
1
2
3
What if conditions were relaxed?
21
2m
20m
4h
24h
0
0.5
1
1.5
2
2.5
3
10h4h
2h15/20m
Longer response time
Time to “preload”
Greater capacity
Longer response duration
Rising/falling warehouse temperature
Reduced capacity
Ca
pa
cit
y r
es
ou
rce
fa
cto
r
(ST
OR
=1)
Response capacity availability from UK warehouses
(illustrative example)
STOR
CM?
0
10
20
30
40
Retail
Warehouses
HotelandCatering
CommercialOffices
Educaon
Government
Communica
onandTransport
SportandLeisure
Health
Other
Electricityconsump
onin
2011[GWh]
Other
HotWater
Compu ng
Cooling
Catering
Hea ng
Ligh ng
What if conditions were relaxed?
2m
4h0
1
2
3
~0.4 – 1 GW
Examples of expected response capacity for
given response time and durations relative
to present provision under STOR
• Demand Side Response (DSR) slow
to emerge
• Reasons: the case for DSR
• Potential contribution of DSR to
capacity mechanisms (non-residential
sector)
• Timing of activities of residential
customers in Europe
24
2m
4h0
5
Shifting demand through price: Time of
Use tariffs • After TOU tariffs were introduced negative conservation
effect (consumption increased by 13.7%)
• Consumers’ electricity bills decreased by 2.2%
• Peak load shifting took place for morning peaks and
created a split in two peaks for evening periods
25
Shifting demand through understanding
timing of activities: practices
• The timing of energy demand depends on
activities / practices
• Simultaneity of practices / hot spots during
the day are vital for peak demand issues
• DSR initiatives are aimed at making
demand flexible
26
• Structure and social distribution
• Spatial, temporal, and social distribution of different practices: who does what, where and when?
• Time pressure and peak demand
• Peak demand and flexibility : how strong/hard is the temporal structure? What can be changed by (what?) intervention?
• Societal synchronisation?
• Change over macro & micro time
• Birth, life and death of practices : how do practices evolve, change shape, expand, spread..?
Timing of residential demand and active
occupancy
• Large amounts of data available on timing
of generation, transmission, distribution
and supply (European Commission, 2010;
International Energy Agency, 2010)
• But limited information about timing of
consumption of residential users
• Two possible approaches:
– advanced metering technologies
– deriving time-related demand for electricity
from available occupancy data
28
Time use data
• The Harmonised European Time Use
Survey (HETUS) database consists of
220,464 residential users across 15
countries
• Focus on single households
29
Diary/
person
id
Starting
Time
Ending
time
Main activity Parallel activity Who with: Where/mode
of tranport
Alone Spouse Small
child
Other
pers.
a 04:00 07:20 Sleep At home
a 07:20 07:50 Shower At home
a 7:50 08:30 Had breakfast Read newspaper Ch At home
a 08:30 08:40 Walked to bus A By foot
a 08:40 09:00 Bus to job OP By bus
Relative occupancy curves of single
households in 15 European countries (1)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 2 4 6 8 10 12 14 16 18 20 22 24
Per
cen
tag
e o
f h
ou
seh
old
s w
ith
act
ive
occ
up
an
t
Time of day
15 countries average UK France Slovenia
Estonia Lithuania Finland Sweden
Norway Spain Germany Poland
Belgium Bulgaria Latvia Italy
Relative occupancy curves of single
households in 15 European countries (2)
Absolute occupancy curves of single
households in 15 European countries
32
Activities at home of single households between
20h20 and 20h30
Country Start
Time
End
Time
Work
and
study
(%)
Travel
to/from
(%)
Household
work (%)
Sleep
and
other
(%)
Eating
(%)
Free
time (%)
TV
and
video
(%)
Unspe
cified
time
(%)
Belgium 20:10 20:20 4.5 0.63 15.37 4.58 13.72 22.1 36.76 2.35
Bulgaria 20:10 20:20 3.66 0.75 16.08 3.75 26.53 10.11 38.84 0.28
Finland 20:10 20:20 6.86 0.62 16.87 7.4 6.95 26.76 32.52 2.02
France 20:10 20:20 4.49 1.05 15.88 4.29 36.71 10.34 24.58 2.65
Estonia 20:10 20:20 7.08 1.55 19.86 5.56 9.29 20.08 35.86 0.73
Germany 20:10 20:20 4.49 0.79 12.32 3.22 9.83 29.63 38.58 1.14
Italy 20:10 20:20 4.1 1.44 18.45 4.18 38.97 16.46 15.06 1.34
Latvia 20:10 20:20 8.18 2.25 15.12 4.94 13.16 16.22 39.63 0.51
Lithuania 20:10 20:20 7.76 1.13 17.2 6.91 11.45 13.96 40.9 0.68
Norway 20:10 20:20 6.89 0.61 18.86 2.61 7.86 39.08 23.69 0.38
Spain 20:10 20:20 11.37 2.66 25.03 4.92 8.68 34.16 12.72 0.46
Poland 20:10 20:20 6.22 0.81 15.48 7.99 10.54 17.38 40.74 0.86
Sweden 20:10 20:20 6.88 0.65 16.69 3.29 8.8 29.22 33.58 0.89
Slovenia 20:10 20:20 6.34 0.75 15.08 8.48 8.85 21.07 39.08 0.35
UK 20:10 20:20 5.68 0.9 15.18 4.2 9.16 26.44 37.29 1.15
0
50
100
150
200
250
300
350
00:0
0
01:0
0
02:0
0
03:0
0
04:0
0
05:0
0
06:0
0
07:0
0
08:0
0
09:0
0
10:0
0
11:0
0
12:0
0
13:0
0
14:0
0
15:0
0
16:0
0
17:0
0
18:0
0
19:0
0
20:0
0
21:0
0
22:0
0
23:0
0
En
erg
y d
em
an
d (
MW
h)
TV we (2.2 TV per home)
TV we (1 TV per home)
TV wd (2.2 TV per home)
TV wd (1 TV per home)
Occupancy variance
– Baseline occupancy variance
– Peak occupancy variance
34
• High peak
variancesmart
appliances
• Low peak
variancemanual and
incentive-based DSR
programmes
• Low non-peak
variance DDSC
• High baseline
variance ToU 35
Country
)
Belgium 0.193
(0.027)
0.051
0.034
0.142
0.159
Bulgaria 0.194
(0.071)
0.048
0.011
0.146
0.183
Finland 0.130
(0.056)
0.024
0.010
0.106
0.120
Estonia 0.127
(0.028)
0.008
0.021
0.119
0.106
Germany 0.113
(0.015)
0.043
0.022
0.070
0.091
Italy 0.124
(0.023)
0.049
0.024
0.075
0.100
Latvia 0.128
(0.027)
0.011
0.024
0.117
0.104
Lithuania 0.131
(0.025)
0.009
0.018
0.122
0.113
Norway 0.130
(0.026)
0.057
0.012
0.073
0.118
Spain 0.192
(0.031)
0.064
0.057
0.128
0.135
Poland 0.101
(0.019)
0.051
0.012
0.060
0.089
Sweden 0.126
(0.025)
0.054
0.014
0.072
0.112
Slovenia 0.144
(0.023)
0.041
0.025
0.103
0.119
United Kingdom 0.165
(0.023)
0.091
0.020
0.074
0.145
Final remarks
• Current “demand side” arrangements
favour generation rather than DSR
• The factors which slowed down DSR in
the past are likely to change in the future
• Different regulatory arrangements (e.g.
under capacity mechanisms) would favour
potential increase of DSR
• Following timing of activities is key to
understand the potential of DSR in the
residential sector 36
References -Grünewald, P. and Torriti, J. (2013), Demand response from the non-domestic sector: Early
UK experiences and future opportunities. Energy Policy, 61, pp. 423-429
-Barton, J., Huang, S., Infield, D., Leach, M., Ogunkunle, D., Torriti, J. and Thomson, M.
(2013), The evolution of electricity demand and the role for demand side participation, in
buildings and transport. Energy Policy, 52. pp. 85-102
-McKerracher, C. and Torriti, J. (2013), Energy consumption feedback in perspective:
integrating Australian data to meta-analyses on in home displays. Energy Efficiency, 6 (2).
pp. 387-405
-López-Rodríguez, M.A., Santiago, I., Trillo-Montero, D., Torriti, J., Moreno-Munoz, A.
(2013), Analysis and modeling of active occupancy of the residential sector in Spain: an
indicator of residential electricity consumption. Energy Policy, 62, pp. 742-751
-Torriti, J. (2012) Price-based demand side management: Assessing the impacts of time-of-
use tariffs on residential electricity demand and peak shifting in Northern Italy. Energy, 44.
pp. 576-583
-Torriti, J. (2012), Demand Side Management for the European Supergrid: Occupancy
variances of European single-person households. Energy Policy, 44, pp. 199–206
-Torriti, J., Hassan, M. G. and Leach, M. (2010) Demand response experience in Europe:
policies, programmes and implementation. Energy, 35. pp. 1575-1583
37
Thanks
6
DSR’s current role in Balancing STOR – breakdown
Focus on Non-BM “Demand Side” Services
STOR by Fuel Type - Aggregators Season 6.3
CHP, 69.3MW, 2%
Diesel, 118.8MW, 4%
Gas Reciprocating Engine,
68.0MW, 2%
Hydro, 69.3MW, 2%
Load Reduction, 83.8MW, 3%
Non-Aggregated, 2412.0MW,
87%
Aggregated Total,
409.0MW, 14%
NBM Demand Side breakdown
Bio-Diesel, 12, 0%
Biomass, 20, 1%
CCGT, 52, 2%
CHP, 72.25, 3%
Diesel, 493.25, 18%
Gas Reciprocating Engine, 68,
2%
Hydro, 69.25, 2%
Landfill gas, 12, 0%
Load Reduction, 139.25, 5%
OCGT, 346, 12%
BM STOR
1537MW , 55%
Non-BM "Demand
Side" STOR:
1284MW, 45%
Aggregated STOR Services
It appears that the majority of
services are ultimately provided by
generation resources
Diesel and open-cycle gas turbine
dominate
Aggregators are another key
aspect of the STOR market,
gathering smaller loads together
for National Grid to instruct
Diesel and other generation
technologies predominate but
biggest contributor of “true”
demand side resources
2m
4h0
1
2
3