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Funded by: European Union Smart/Intelligent Grid Development and Deployment in Thailand (Smart Thai) Smart Grid: Policy, Services and ApplicationsAutomated Demand Response for Integration of Renewable Resources Mr. Sunpatipan Taechoprasert Director - Strategy, Pricing & Commercial Excellence, Schneider Electric 5 th October 2012 IMPACT Exhibition and Convention Center, Thailand

Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Page 1: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

Funded by:

European Union

Smart/Intelligent Grid Development and Deployment

in Thailand (Smart Thai)

“Smart Grid: Policy, Services and Applications”

Automated Demand Response for

Integration of Renewable Resources

Mr. Sunpatipan Taechoprasert

Director - Strategy, Pricing & Commercial Excellence,

Schneider Electric

5th October 2012

IMPACT Exhibition and Convention Center, Thailand

Page 2: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

Automated Demand Response for

Integration of Renewable Resources

Sunpatipan Taechoprasert

Oct 5, 2012

Smart Grid : Policy, Service and Application

IMPACT, Muang Thong Thani

Page 4: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

4

Introduction The 5 pillars of smart grid and the role of demand response

Industry

Buildings

Data Centres

Infrastructure

Residential

Electric Vehicles

& Energy Storage

Efficient Home

(with electric vehicles)

Efficient Enterprise

(+ infrastructure to charge electric vehicles)

Smarter

Demand

Smart production

(centralised, distributed and renewables)

Flexible distribution

(HV/MV, MV/MV, MV/LV)

Smarter

Supply Smart Grid

Demand

Response

Demand

Response

Page 5: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

5

Integration of renewable generation

●Generation Control System (GCS)

● The Generation Control System is the bridge between generation power

plants and System Operator

● The status of the renewable generation variables are sends to System

Operator by means of Generation Control System

Page 6: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

6

Integration of renewable generation

●Generation Control System (GCS)

● Integration of renewable generation provides demand response and energy

transport efficiency

Variables

System Operator

GCS

Renewable

Generation

Filtered

variables

Page 7: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

7

Integration of renewable generation

SCADA Web Server

Co-generation

Wind farm

GCS Remote Web Access (Optional)

Remote Web

Customers

Existing

Local

Control

System Existing

Local

Telecontrol

Protocol ICCP TASE.2

Protocol

OPC-DA IEC 101

Existing

UTR

IEC 104

Generator

measures

OPC-DA TCP/IP – serial

conversion

Redundant dedicated

communication lines

System Operator

Co-generation

Co-generation

Page 8: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

8

Why need Demand Response

● Unpredictable and steep ramps

● Errors in forecasting

● Variability during Hours

● Over generation in the night

Page 9: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

9

Main Challenges in Demand Side

●Customer education and regulation products

●Limiting customer’s regulation participation

●Switching off equipment vs modulating equipment

●Accuracy of forecast

●DR resources are not the same as generation resources

Page 10: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

10

Challenges in Communication & Control

●Resource parameters effect to DR

●Slow DR communication infrastructure

●Control architecture impact on communication

●Load sequence in Building Facility Management

●Who could take energy in night : Building

Page 11: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

11

Industry

Buildings

Data Centres

Infrastructure

Residential

Electric Vehicles

& Energy Storage

Efficient homes

(incl. EV charging infrastructure)

Efficient Enterprise

(buildings, industries & datacenters

+ EV charging infrastructure)

Smarter

Demand

Smart Generation

(bulk, distributed & renewable)

Flexible

Distribution

(DMS, substations, feeders)

Smarter

Supply

the

Smart Grid

Demand

Response

Demand

Response

5 areas of expertise, all connected

Page 12: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

12

Transmission Distribution

Commercial

& Industrial

Residential Efficient Home

Efficient Enterprise

Centralised Generation

Renewable Energy Plants Distributed Generation

Industry

Buildings

Data Centres

Residential

Infrastructure

Utility network Consumers

Demand-response to help balance supply & demand at peak time

Aggregation of large

industrial load

1GW under control

Major supplier of

EDF RTE

Advanced Load Control

System with end-users

Reduction of peak load

Management of

unplanned

situations

Technical VPP Commercial VPP

Grid services Market services

Solutions for Technical and Commercial needs

Weather information services

Page 13: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Energy Pool presentation

European leader in demand-response

Focus on large electricity consumers of the industrial and commercial sectors

End 2011: a virtual power plant of 1000 MW of flexible load,

managed 24/7 from our Network Operation Center in Chambery (France).

Equivalent to one nuclear reactor

Represents the largest demand-response operator in Europe and a leading

position worldwide

Energy Pool International: a subsidiary dedicated to international deployment of

our operations . Operations starting in UK, Belgium. Ongoing projects worldwide

A fast growing company

2008: created by entrepreneurs from industry;

2010 : Schneider demand response operator

End 2011: 40 people

Page 14: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

14

Access - Commercial & engineering phase :

Assess the DR potential of one or many consumer sites

Reprocess/operate and calculate the costs of execution

Go/NoGo for DR program(s) participation

Operate - Consumer participation to the Pool

DR capacities operational management

are combined and activated depending on

operational needs

Consumer effort limited to activation during events

Monetize - Optimize the value extracted from the

different DR programs for a given set of capacities

Aggregations are organized so that the most valuable

characteristics are proposed to the markets (e.g. 24/7

availability)

Access Operate Monetize

Consumer

Process

Smelter

Cold Storage

Etc.

NOC

Optimization

of the economics

DR expertise &

complexity

processing

CVPP or Aggregator as keyrole Identifying & Improving Active Demand participation with financial incentives

Page 15: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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DR management cancels load or shifts it from peakers (mainly fossil-fuel ) to hydro or

nuclear CO2-free base generation

‘Valleys’

DR management shaves peaks and

lowers needs for investment in new

capacities

DR management can stimulate

demand when there is an excess of

power, therefore improve the

generation profitability and security

of supply

GHG

Peaks

Flexibility through DR management is proven and currently deployed in EU countries

DR management matches 3 x 20 challenges Peak shaving, smart investments, reduction of CO2 emissions

Page 16: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Possible

interruption of

loads

From different

capacities…

…we identify

opportunities…

Continuous

process merely impossible to

stop

High fixed fee

Complex Process can be stopped with

cautious operations

High variable

prices

Side-processes with a big storage

capacity

Lower price, big

volumes

We collect forecasts and monitor

real-time availability and constraints

…we aggregate and make

offers to the markets…

Balancing Market

Security

Reserves

& Regulation

Capacity Market

Energy Market

Transactions

Realtime &

Intraday

Long term

contracts,

Emergency

operations

Mid or Long

term contracts

Intraday to

Long term

contracts

DR Identification, aggregation and operation Creating value by reducing risks and complexity for all parties

Local generation with or without

flexibility

Market value

Lo

ad

G

en

era

tio

n

Long term

contracts

Page 17: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Large scale

100’s of MW : a powerful tool

in the hands of Grid Operators

Reliability

Pooling effect : contracted

MWs exceed commited MWs

Customer A

Customer B

Customer C

Bids

Is called

UpdatesCustomer D

-

-

30 MW

20 MW

Operates

Dispatches

Controls

The Pool

10 MW

10 MW

30 MW

-

Gridoperator /

Utilities

Demand Response with Energy Pool The key advantages of the pool

Page 18: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Demand Response with Energy Pool

Grid operators / Utilities

Pay Energy Pool for provided

flexibility service

Customers members of the

pool

Receive a a payment from Energy

Pool for flexibility resources

operated by Energy Pool

Large electricity users

Provide flexibility

resources to be operated

by Energy Pool

Grid operators / utilities

Get flexibility services

from Energy Pool

AgregatesSecures

OperatesOptimizes

Page 19: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Case study - Global Pharmaceutical Tech

Company

Plan Strategy

● Situation:

● Global pharmaceutical tech company wanted to

cut energy costs in its facilities across 4 continents

● Needed an efficient way to involve a number of

global facility-level personnel in the process

● Solution:

● Consumption Workshop, proprietary exercise to

uncover strategies for reducing energy costs and usage

● Forum for plant personnel to collaborate with corporate leaders about key projects and

strategies

● Employees from 16 facilities, including sites in France, Italy, Belgium, United Kingdom,

Puerto Rico and the U.S., participated in the workshop.

● Results:

● Identified $2.6 million in energy savings during the Consumption Workshop, most of which

could be realized with little or no capital investment.

● Savings represented 9% of the company’s total annual energy spend

● Collaboration among the facility teams for the first time

Page 20: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Case Study - Global Manufacturing

Company How Do I Buy?

● Situation:

● Decentralized global manufacturer with 44 sites in 18 countries with each site handling

energy management efforts independently

● Solution:

● Identified countries in the portfolio that offered greatest opportunities

● Reviewed risk management and tariff and sourcing options

● Large site in Singapore was about to enter into a new contract that would lock in electricity

price that Summit team anticipated would go lower

● Recommended waiting to lock to take advantage of expected downward market movements

that would save the company money

● Results:

● The company centralized its approach

● Corporate energy leader could make more informed

hedging decisions across all 44 facilities.

● Singapore site lowered its long-term electricity costs,

eliminating potential volatility, saving 10%

Page 21: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Case Study - Automotive Company How Do I Control?

● Installed Enterprise Energy Management System (EEM)

● Smart energy monitoring resulted in:

●Cost savings

●Faster access to reporting

●Conservation initiatives

● Ongoing Measurement & Verification

● Measurement and Verification continues the

lifecycle focus and leads Ford through

revisiting their energy strategy

Page 22: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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● Production process scheduling

● Install WAGES monitoring & control to forecast filter

loadings and initiate backwashes to avoid peak utility

demand periods

● Pumping system optimization

● Provide demand sub-metering and hydraulic modeling

intelligence to optimize system for any given flow and

pressure condition

● Install adjustable speed drives

● Control inefficient discharge valve control to maintain

system pressures and flows at desired levels

● Diesel driven pumping

● Install WAGES monitoring & control to monitor critical

parameters, remotely start/stop pumps during peak

electrical periods to reduce utility charges

● On-site generation

● Fully monitor and automatically operate on-site diesel

generators for peak efficiency

$764,630 annually

3.2 year payback

6,818 kW

12,458,300 kWh

-3,690 dT

Results

Case Study - Veolia, Indianapolis

LLC How Do I Optimize?

Page 23: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Case Study - Global Glass Manufacturer

How Am I Performing?

● Situation:

● One of the largest glass manufacturers in the world,

producing 30 billion glass containers a year

● Needed help tackling its sustainability challenge

● Solution:

● With access to the company’s corporate-wide energy information, analyzed data to

create GHG emissions baseline

● Developed GHG inventory by defining boundary conditions, outlining scope definitions

upon verifiable data and auditable processes

● Results:

● The glass manufacturer could track and report on greenhouse gas emissions at both

the site and enterprise levels.

● The company began to leverage emissions data from multiple streams and scopes,

benchmark performance against baseline data, and maintain a database of

sustainability project initiatives

● Gained an understanding of historical emissions data, used information for corporate

sustainability benchmarks and initiatives

Page 24: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Energy Monitoring Energy Modeling provides a means to normalize usage and factor out the influences of weather and production

Page 25: Automated Demand Response for Integration of Renewable ...wadethai.org/.../3_Automated_Demand_Response.pdf · 13 Energy Pool presentation European leader in demand-response Focus

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Make the most of your energy™

[email protected]

schneider-electric.com