Informing Utilities and Policymakers on the Customer Side of Smart Grid

Harvey Michaels, Scientist/Lecturer

DUSP Environmental Policy and MITEI

617-253-2084 hgm@mit.edu 9-326

Instructor: Enabling an Energy Efficient Society

Efficiency in US Homes and Buildings ( 71% of all electricity, 54% of all natural gas)

Potential: – Est. 50%+ Savings at Lower Cost over 20 years.

– Without sacrificing comfort or function,

Technology Examples: – Home Central AC tune-ups can displace 25000 MW (25 plants) for $12B

– CFL’s in “recessed cans” will save 5% overall (LED’s 7%)

– Optimization/storage can reduce peak load AND ENERGY USE by 25%.

Deployment Methods (examples):

– Smart Grid: Pricing/AMI, and info/behavioral technologies,

– Rebates/Direct-install: funded by utilities, carbon cap-and-trade,

– New building codes, upgrade on transfer, appliance standards.

Smart Grid – Utility Private Network Architecture – utility provides meter-to-devices communication

MDM/Head-end

Utility-side

CustomerUtility-network devices in home

The Customer Side of AMI: 2 strategies

1: AMI – Responsive Energy Strategy

Price-based demand response, using time-differentiated rates, which requires AMI.

– Vision: Customers view data, make choices, in time automatic response by customers thermostat and other devices.

2: Smart Grid – Utility Control Strategy

Push-button Control-based demand response – The Utility monitors and controls end use equipment.

– Vision: Generation, transmission, distribution, and end use equipment as part of a single system.

– Interval meter reads not essential.

Do we want “Smart Grid” - Utility Control?

End use equipment is visible and controllable by the utility or third party–

“Smart Grid” is more dispatchable (perhaps) and therefore can replace spinning reserve ….but some find it kind of scary.

Resistance is Futile

Prepare to be Assimilated

Customer Side of Smart Grid = Responsive EnergyProviding consumers with energy diagnostics, feedback, control

I2E

Definition: “Responsive Energy”

“Enable responsive, smart energy environments that are gracefully integrated with people.” *

SUCH AS: systems for optimizing consumers’ end-use needs (especially air conditioning, heat, hot water)

based on weather, schedules, and time differentiated costs.

Smart/Responsive energy holds great potential for displacing the need for other energy resources.

But what will be the ultimate delivery model: utility or marketplace?

And who will control the “smarts”: utility or customer?

Vision – Web/IP Collaboration of Workspaces- customer/home network has access on demand to real time, high frequency meter reads

Utility’s Web Workspace

MDM CRM

Device Workspace

Utility-side

Customer-side

Questions: Utilities in the Responsive Energy World

Utility-controlled vs. Customer-controlled optimization?

Home network gateway and/or Meter network gateway?

AMI :

– two way, high bandwidth communications?

– Meter-to-Home Network Communications?

– Web Workspaces vs. In-home displays

Working with the Market

Cross-campus Responsive energy research

Intelligent Infrastructure for Energy Efficiency (I2EE) research on in-building communication methods.

Energy Box - consumer-managed modulation systems.

Behavioral systems to encourage energy efficiency.

Building energy analysis based on control schema.

Evaluating community-level measurement and modulation systems

Innovation Pathways - for energy efficiency and smart grid.

Customer Control Utility Control

Control Customer decisions/control - HAN optimized by utility - Customer opt in/out

Pricing Time-based - dynamic pricing. Incentive for participating.

HAN Owned/purchased by customer.

Possible utility incentives/NCP

Provided by utility/ recovered as part of regulated filing.

Gateway HAN via internet. Meter via proprietary system.

Data 1)To customer via internet.

2)To utility via proprietary system – hourly reads once/day; low bandwidth.

3) Also Meter directly to home.

To customer and utility via proprietary system

Two way and high bandwidth –

Large amounts of data.

Utility Cost Inexpensive Expensive

Impacts Creates efficiency and DR. Primary impact is DR.

Evaluation/

Additionality

Indirect - utility provides pricing, hourly reads, meter to home, and internet support.

Market forces create outcomes. New paradigm for regulators.

Direct - due to utility control.

Easier for regulator – Like current load control programs.

Vision - Applications for the Smart Consumer

Utility, thermostat, appliance, Google, etc. make app.

View on home PC, work PC, TV, cell phone (at least until next year).

Application ideas:

Make my AC, water heater, pool pump, refrigerator use pattern smarter.

Find out what anything costs to run.

Choose the best rate for me.

Choose a theme – understand the consequences- do it (ie. More Green)

Sell a DR option.

Informing Utilities and Policymakers on the Customer Side of Smart Grid

Harvey Michaels, Scientist/Lecturer

DUSP Environmental Policy and MITEI

617-253-2084 hgm@mit.edu 9-326

Instructor: Enabling an Energy Efficient Society