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Demand Response: The Demand Response: The Challenges of Challenges of
Integration in a Total Integration in a Total Resource PlanResource Plan
Howard SmithHoward SmithManager Manager
Resource Planning and Demand ResponseResource Planning and Demand ResponseAlabama Power CompanyAlabama Power Company
June 2010June 2010
Discussion
• Terminology• Traditional Demand Response and Energy
Efficiency• Smart Grid• Demand Response Sustainability• Integration of Supply and Demand
Response Resources in Long Range Resource Planning
• Operational Concerns
Demand-Response Terminology
LOAD MANAGEMENT (a.k.a. Demand Side Management & Demand Side Options)
The process of balancing the supply of electricity on the network with the electrical load by adjusting or controlling the load rather than the power station output
DEMAND RESPONSE (can be “Direct” or “Indirect” per dispatchability)
Providing electricity customers in both retail and wholesale electricity markets with a choice whereby they can respond to dynamic or time-based prices or other types of incentives by reducing and/or shifting usage, particularly during peak periods, such that these demand modifications can address issues such as pricing, reliability, emergency response, and infrastructure planning, operation, and deferral.
ENERGY EFFICIENCY Using less energy to provide the same or improved level of output.
CONSERVATION Reduced energy consumption
Load Management Flow Chart
LOAD MANAGEMENT
DEMAND RESPONSEENERGY EFFICIENCY
(NON-DISPATACHABLE)
DISPATCHABLE
“DIRECT”
NON-DISPATCHABLE
“INDIRECT”
CONSERVATION
• Price Signals to Customers• Controllable AC compressors• Controllable Pool Pumps• Controllable Hot Water Heaters• Higher Insulation Levels• Air Duct “Tightening”• Weatherization
Traditional DR and EE Resources
• Green – An environmentally friendly grid will reduce environmental impacts through initiatives in generation, transmission, and distribution
• Customer Service – Provide consumers with real time pricing and other system conditions to facilitate informed energy usage decisions
• Efficiency – New options to reduce losses, optimize power flows and improve asset utilization
• Reliability – dependable power with robust power quality and the ability to self heal after a disturbance
• Safety – SG will sense potential safety issues and automatically provide grid condition information for reconfigurations
Smart Grid
• Real Time Control of Thermostats, Hot Water Heaters, Pool Pumps, Etc.
• Ability To Offer Customers’ Their Energy Usage Patterns and Support Their Energy Management Systems
• Ability To Support Other Demand Side Management Programs such as Sending Price Signals or load Control Signals to End Users or Processes
Enhanced Benefits for Smart Grid Systems
8
Distribution Demand Response Initiative
(DROP/DEEP)
112
114
116
118
120
122
124
126
128
Distance
Vo
lts
Without DEPWith DEP
Lower Voltage Limit
Upper Voltage Limit
Substation
Lower CVR Limit
112
114
116
118
120
122
124
126
128
Distance
Volts
Upper Voltage Limit
Lower Voltage Limit
With DEP
Normal Voltage Profile
Lower CVR Limit Proposed DROP Profile
Distribution Energy Efficiency Program (DEEP)
DEEP:• GOAL - maximize the efficiency (minimize losses) of
distribution circuits while providing a load management option
Benefits:• Reduce system losses
• Decrease demand on present Generation Fleet• Lower Fuel Costs• Reduce peak
• Lower emissions• Decrease substation and feeder overloading• Defer capital projects (plants, subs, etc.)
• Provide additional Demand Response capabilities• Reduce non-compliance penalties for not meeting
pending emission and renewable standards• One of the more cost effective energy efficiency options
What is DROP?• Conservation Voltage Reduction (CVR)• REDUCES Voltage to LOWER Demand
and REDUCE losses• REDUCES system VAR requirements• Voltage level at regulator adjusted by
end-of-line voltage• Less expensive alternative to
conventional generation resources (in the $10/kW range)
• No carbon or emission offsets needed• No Customer Impacts
Distribution Regulation Option Program (DROP)
Demand Response Value and Sustainability
• Is the Demand Response Sustainable over the short and long term?•Who “controls” the Demand Response Resources?•What are the drivers that impact the Demand Response (price/savings, duration, economy, regulatory issues, and etc.)?•Participation and Penetration – Economic theory versus actual customer behavior?•The 4C’s Test – Cost, Comfort, Convenience, and Conservation
Cost
Comfort
Convenience
Conservation
Understanding how customers balance these drivers will determine the sustainability of demand response resources
Challenges of Integrating Demand Response and Supply
Resources•Creating a common basis for valuing Demand Response and Supply Resources (dispatchability, hours of use, cost parameters, etc.)•Sustainability over the short and long term•Operational Flexibility • Impacts on Customers (Reliability, Power Quality, Rates, Savings, and etc.)•Environmental Impacts
Generation Dispatch and Commitment of Demand
Response Resources
Hours per year/Capacity Factor
Generation in MW
Baseload Capacity
Peaking Capacity & DR
Intermediate Capacity & DR
Time in Hours
Load
in M
W
Peak to
valley
Load Duration Curve
5 pm5 am12 am 12 pm 12 am 5 am
Typical Load Duration
Load Duration with DR
Load Duration Curve with Demand Response
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QuestionQuestions ?s ?