Browsing by Subject "Demand Response"
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Item Open Access A Guide to Inform Institutions about Participation in PJM’s Demand Response Programs(2013-04-21) Aldina, Robin; Soden, JohnIncreasing reliability concerns over the last decade have led stakeholders within the Energy Industry to place a great deal of attention on the management of electricity load. Traditionally, consumers have been shielded from the price signals that indicated high stress on the electricity grid, but through a process known as Demand Response (DR), customers are now being offered incentives to actively manage their load for increased reliability. Attention on DR has grown with its profusion into electricity markets; at both the wholesale and retail levels. Focusing on institutional customers and DR programs within the PJM wholesale electricity market, this study provides a comprehensive resource to answer questions associated with (1) the regulatory structure of PJM’s markets for DR and (2) the possible benefits that can result from market participation. As a first step in addressing these objectives, this report first provides an analysis of the current publically available information, and establishes that there is no single resource that provides sufficient information to resolve all the questions an institution may have. This report then offers clear and concise content by which institutional customers can assess the framework of PJM’s DR programs. Further, a tool for estimating the potential revenue available from participation in the capacity auction was created to help institutions understand the profitability of engaging in the capacity market. Finally, this report concludes that while participation in PJM’s demand response programs is a complicated undertaking, there are a wide variety of options available to meet the unique needs of individual customers, as well as significant financial incentives.Item Open Access Balancing Wind Down Ramps With Demand Response: The opportunity for load participation in ancillary service markets spurred by high wind penetration(2012-04-27) Brumleve, Nick; Ballal, Sangeeta; Nourafshan, AndrewLarge “down-ramps,” inherent in the pronounced variability of wind power generation, are a threat to grid stability as the share of wind resources increases in power markets. Balancing Authorities face the challenge of how best to address the externalities that wind variability places on the grid. Our analysis assesses U.S. power markets that offer the greatest opportunities for demand response to act as a wind balancing resource. More specifically, this study evaluates market opportunities for third-party demand response aggregators to bid the capacity of responsive load into ancillary services markets to address these “down-ramp” events. This evaluation was performed through both the establishment of a qualitative framework and the creation of a quantitative, Microsoft Excel-based, model. In the qualitative framework, we reviewed the existing wind integration literature to identify the critical characteristics of a balancing authority that are predictive of the local grid’s relative capability to accommodate wind ramping behavior. In this framework, we additionally outline key qualities of loads that make them viable candidates for the demand response services required in the balancing of wind ramps. Lastly, we discuss several potential approaches for forecasting future wind penetration in a balancing authority. We have found that demand response for wind balancing can be a favorable emerging business opportunity in a power system at the confluence of these three aforementioned analyses: 1) the balancing authority’s structure and other conditions lead to a limited ability to effectively respond to increasing wind penetration, and demand response is an eligible resource to participate in balancing markets, 2) the balancing authority has a sufficient concentration of load types that are viable and appropriate demand response candidates for the balancing of wind ramps and 3) there are expectations of high future wind penetration in the system. For our quantitative analysis, we have developed a modeling tool designed to project the total size of the down ramps caused by various wind penetration levels in a given balancing authority. These projected down ramps are then related to the generation assets of the balancing authority to evaluate the efficacy with which wind ramps can be balanced with incumbent generation and to assess additional ancillary services required that could be met with demand response, among other sources. Finally, the qualitative and quantitative evaluation frameworks we have developed are applied to a case study of the Southwestern Public Service (SPS) balancing authority in the Southwest Power Pool, where there is high wind penetration and an evolving ancillary services market. Ultimately, while we find SPS to be a very strong candidate for demand response-derived wind balancing on a number of metrics, through our quantitative analysis we nevertheless find that an abundance of installed generation capacity in the balancing authority somewhat mitigates the deleterious impact of large wind down ramps, and substantially higher wind penetrations must be achieved before SPS is truly constrained. However, demand response still may provide the least cost option for wind balancing even at lower wind penetrations. There are current policy and market barriers directly precluding load response in ancillary service markets in the Southwest Power Pool, however given policy changes happening at the national and regional levels, it appears this trend may be reversing in the near term. The tool set we have developed here will allow third-party demand response providers to effectively and relatively quickly assess the relative merits of the business opportunity associated with attempting to sell demand response as a wind-balancing product in a given power system. In addition, the insights provided herein may illuminate several key considerations for a balancing authority seeking to address the efficacy with which wind down ramps can be balanced in future grid operations.Item Open Access Power to the Block: The Economics of Electric HVAC Assets in New York City Demand Response Programs(2022-04-22) Slap, WilliamDuring the hottest days of the summer, the demand for electric power in New York City can exceed what the grid can supply. As the state expands its renewable energy sources to comply with the 70% of total electricity target set out in New York’s Clean Energy Standard, there is an urgent need for increased flexibility in power demand. This study, a client-engagement with electrification retrofit startup BlocPower, evaluates the economic viability of enrolling a portfolio of electric Air Source Heat pump (“ASHP”) assets in New York’s Demand Response programs. Our analysis assesses the available programs, determining the hurdles and costs to participation as well as the payment structure and drivers of revenue. We have developed quantitative models for forecasting peak events and estimating the curtailable capacity of each asset. We use the models to estimate the economic impact of a small change in the thermostat during a peak event. Our analyses returned results that have significant implications for the client and for the viability of ASHPs as a demand side resource. First, we found that the choice of system type, multi-split (“MS”) or variable refrigerant flow (“VRF”), had a significant impact on total project costs. The systems require different smart thermostat control solutions, and VRF systems are less costly to implement. We also found that the ISO and the utility compensate participants differently depending on the geographic location of the asset. Higher congestion areas of New York City command higher prices for reservation and curtailment. Our analysis of the curtailable capacity of each asset estimates that approximately 4% of the total system capacity is flexible under the prescribed intervention. Finally, we find that analyzing prospective projects along the three categories of geography, curtailable capacity, and asset type is a meaningful means of identifying NPV positive projects. It is important to note that our analyses use past weather and demand response event logs and do not consider the effects of climate change or seasonal warming.Item Open Access SUSTAINABILITY CHOICES: IDENTIFY OPTIONAL TECHNOLOGY USING THE PECAN STREET SMART GRID DATABASE(2015-04-24) Zhang, XinxingEffective measures for tackling climate change and the depletion of nature resources such as oil and natural gas are required, particularly in the residential sector. Varying in different countries, energy consumption of the residential sector accounts for 16–50% of that consumed by all sectors, and averages approximately 30% worldwide (Lukas G. Swan, 2009). This significant consumption level warrants leads researchers to have increasing interests in the real impact brought by renewable energy technologies and electricity pricing programs on electricity usage. A number of researches are conducted around this topic but most of them are not using real-time data to support their analysis. This report investigated the impact of solar, electric vehicles and demand response/time-of-use pricing programs on household electricity consumption using data collected by Pecan Street smart grid, which is one of the world’s largest energy database, from three different perspectives: 1) electricity savings 2) cost savings for utility 3) water savings for utility. Findings from this study suggest that all of the three approaches can lead to considerable savings for utility companies, and for consumers as well. The result of this report can be used as a strong and objective support in promoting renewable energy technologies and time-of-use pricing program.Item Open Access Use Cases of Demand Response and Application to China(2017-04-28) Zhang, Bojia; Qiao, TianSince instituting market reforms in 1978, China has undergone rapid economic growth through transitioning from a centrally-planned economy to a market-based economy. The gross domestic product (GDP) growth rate of China has averaged 10% in the past two decades, and China has become the world’s second largest economy. China is also the most populous country on the planet, reaching 1.4 billion in 2017. With the growth in both economic activities and population, China’s electricity usage has surpassed that of the United States as the world largest electricity market.1 In 2016, China’s electricity consumption has risen to 5920 TWh with 72% generated by coal. On the other hand, the average utilization of thermal generators declined by 200 hours to 4165 hours per year while an additional 125GW of capacity was added in 2016, amounting to 1646 total installed capacity. In 2014, President Obama met with President Xi of China and agreed that China will peak its carbon emission by 2030. The following-up 13th five-year plan (FYP) sets an ambitious goal of having 20% renewable energy source and less than 60% coal generation in China. In line with rapid economic and energy development, China has serious environmental problems caused by coal burning and an electricity system that cannot meet rising demand. In most provinces of China, the need for electricity continues to increase every year. However, the available local generation resources have already been fully utilized and insufficient transmission capacity makes drawing up electricity generation from other areas infeasible in the short-run.7 The new electricity reform measures in China aim to address the above-mentioned problems through both demand- and supply-side management. Demand response (DR), a sub-category of demand-side management (DSM), is a mature and well-developed program in foreign electricity markets to provide services for the system and save net system costs. China has implemented some pilot projects in Jiangsu, Shanghai and Guangdong, but through the analyses below, we will learn that there are better ways and conditions to make DR a more effective tool in addressing China’s problems. The structure of this report is divided into the following sections. The first and opening section will give a clear definition of DR and other categories of DSM, such as energy efficiency, since DR is a relatively new concept in China. It will also explore the two pre-requisites for a successful DR program: aggregators and availability/capacity payment. The second section focuses on three of DR’s main benefits: peak load shifting/reduction, frequency control and load following. Case studies from PJM (a regional transmission organization in the United States that serves Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia) , Korea, Taiwan, Japan and other markets will be utilized to demonstrate the benefits of DR and feasible models for implementing DR. The third section provides a roadmap to DR’s current status in China in terms of pilots, policies, stakeholders and drawbacks. The last section provides specific policy recommendations for China to better incorporate DR into its new electricity reform, in order to bring benefits to the electricity system.