Matthew Summy - Illinois Science and Technology Coalition
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Transcript of Matthew Summy - Illinois Science and Technology Coalition
Advanced Energy Development in Illinois: Progress through Partnership
America’s Sustainable FutureJune 15, 2011
Philadelphia, PA
Illinois Advanced Energy Ecosystem:Economic Development Approach
Foundation for Growth
Engage Partners and Form Strategic Alliances
Disseminate Market Intelligence and Best
Practices
Identify Funding Sources
Execute Projects
Building on Successes to Date and Acceleration Activities
Research & DevelopmentUIUC – Trustworthy Cyber Infrastructure for Power GridsIIT – Center for Electricity Innovation and Wind Consortium Argonne – Advanced Battery Research
State and Federal InvestmentSBA Regional Innovation Cluster and DOE Clean Tech EcosystemRegional Electric Vehicle InfrastructureSmart Grid Training and Validation CenterSmart Grid Education and Workforce Training Center
Built Environment (proposed)Illinois Smart Buildings InitiativeSmart Communities in Oak Park and HodgkinsPublic InfrastructureSouth Works
Legislative and Policy DevelopmentPower Grid Modernization ActIllinois Smart Grid RoadmapIllinois Statewide Smart Grid Collaborative Report
Illinois Advanced Energy Ecosystem: Partners and Stakeholders
Active Partners
Stakeholders
Demonstration Project Development:Direct Foreign Investment
Established Partnership with Republic of Korea• Signed Smart Grid / Green Technology Memorandum of Understanding between Illinois
and Korea• Developed relationships between researchers, entrepreneurs and investors.• Drafted scopes of work for joint projects• Executed projects
$5+ million in initial projects• Funded
• IIT – KERI– $2 million technology deployment and research
• ADICA – KPX– $250,000 consulting and software agreement
• UIUC – ETRI– $100,000 collaborative research on cyber security
• In negotiations• Illinois – Korea Smart Buildings Initiative
– $2.7 million from Korean government– $1 million from the State of Illinois– Labor and product from Korean companies
Creating Sustainable Urban Cores
Building are significant consumers of energy• On an annual basis, buildings in the United States consume 39% of America's
energy and 68% of its electricity.
Buildings contribute to climate change• Buildings account for approximately 70% of City of Chicago’s emissions and are
the primary target for reducing emissions through the City’s Climate Action Plan.
Large commercial and residential buildings dominate downtown Chicago • They account for more than 1,000 MW of load• These buildings are vulnerable to high electric rates.
Problem Set
Creating Sustainable Urban Cores
Large metropolitan areas such as the City of Chicago do not have the luxury of adding significant, cost-effective local generation.
“Continued implementation of the [Chicago Climate Action] Plan can be reprioritized and accelerated to capture critical economic benefits, such as jobs, increased investment, and decreased costs of living through energy efficiency, clean energy, and sustainable investments.” – Rahm Emanuel transition plan
Problem Set
49%46%
3% 2%
Illinois Electricity Fuel Mix, 2009
NuclearCoalNatural GasRenewables
Illinois Smart Buildings Initiative: Leveraging Converging Interests
Climate
On an annual basis, buildings in the United States consume 39% of
America's energy and 68% of its electricity and account for 38% of
all CO2 emissions. (WDBG Committee, 2010)
In the City of Chicago, buildings account for approximately 70% of City emissions and are the primary
target for reducing emissions through the City’s Climate Action
Plan. (CCAP)
Efficiency
Pacific Northwest National Laboratories estimates that poor
operation and maintenance (O&M) of buildings can result in 10 to 30 percent excess energy use. (PNNL
EEREP)
A recent Electric Power Research Institute study estimates that “the combination of demand response
and energy efficiency programs has the potential to reduce summer
peak demand by 157 GW by 2030. (EPRI, 2009)
Economics
PJM market structure allows for buildings to become virtual power
plants and unlock new revenue streams.
RTP and TOU prices schemes combined with advanced controls
and storage present opportunity for demand side participation in
market transactions.
Market Opportunity
Illinois Smart Buildings Initiative:Project Description
Creating “smart building” those that incorporate innovative energy efficiency technologies and optimizing building operation with respect to market prices and other signals, is essential to mitigating rising energy costs.
The Illinois Smart Buildings Initiative (ISBI) is a multi-property project to install smart grid enabled technologies, capture building use data and refine new sustainable business models.
Approach
Illinois Smart Buildings Initiative:Project Description
The ISBI will be the first multi-building demand response, ancillary services and energy efficiency project in the U.S. • The ISBI will demonstrate demand side participation in PJM’s energy,
capacity and ancillary service markets using advanced communications, control technology and energy efficient equipment installed in several multi-unit buildings.
The ISBI will focus mainly on residential buildings in the first phase (75% residential/25% commercial) to allow for commercial building associations the opportunity to observe and create a business model that works across members.
Once the concept is validated it will be scalable and replicable to other buildings.
Engagement
Illinois Smart Buildings Initiative:Candidate Buildings
Harbor PointFloors: 54 Units: 742Built: 1974Type: Residential
Park TowerFloors: 70 Residences: 728Built: 1973Type: Residential
The MontgomeryFloors: 28 Units: 245Built: 1972Type: Residential
20 S. ClarkFloors: 22Sq. ft: 384,000Built: 1970Type: Commercial
Engagement
Illinois Smart Building Initiative:International Collaboration
The ISBI was developed under a design collaboration between the Illinois Coalition, with support and co-investment from several Korean Consortia members. The ISBI provides the opportunity for Korean companies to deploy technology solutions and achieve market penetration in Chicago.• This includes not only the products required to test market interaction, but
also other technology enhancements that will be available as part of ISBI execution.
International collaboration is part of our economic development strategy to make Chicago a leader in energy optimization. We hope to become the center of an service industry related to the new business models that are being developed through the ISBI project.
Illinois Smart Buildings Initiative:Technology Implementation
The ISBI will incorporate the following improvements:• Building Energy Management System (BEMS) Integration (Energy Use
Monitoring and Control strategies, Device and Equipment Monitoring and Control strategies, etc). A BEMS to control multiple buildings or BEMS to control each building.
• Building Automation System (BAS) upgrades and integration to help maximize BEMS opportunities for wholesale market integration.
• Network Operation Center (NOC) integration and operation to facilitate BEMS communication with the wholesale electricity markets. The NOC will be located in Chicago.
• Home Energy Management (Approximately 10 units in each building).
Illinois Smart Building Initiative:Goals and Benefits
Goal: Unlock new revenue streams for buildings, create jobs and showcase new business models.• It will open new markets through buildings acting as “virtual” power plants to provide
increased power reliability, energy optimization and reductions in greenhouse gas emissions.
• It is anticipated that the increased participation of large buildings in PJM’s markets will result in reduced energy prices for other customers in NE Illinois.
• It will mitigate high electricity costs by allowing building operators to make better, more informed energy related decisions.
• It will provide a funding stream for other energy efficient upgrades.
The ISBI will create value through:• Provision of ancillary services and balancing for Intermittent renewable resources• Reductions in demand (efficiency)• Load shifting (demand response)• Increase operational capabilities and situational awareness (better building
management and efficiency) • Aggregation (increased market influence)
Illinois Smart Buildings Initiative:Project Stages
Preliminary Assessment Feasibility StudyDesign and
ImplementationOperation
and Validation
Prepare the next steps
Basic Building Assessment
Analyze the Data
Design the solutions
Integrate the solutions
Test the operability of solutions
Begin day-to-day operations
Business Modeling
Deep Dive Audit
Develop the collaboration Structure
Find Financial Investors
Define project scope, Org. & estimate cost
Contract Signing on Implementation
• Onsite Analysis• Define Detailed Scope
• March 2011
Contract Signing on Deep Dive Audit
• July 2011
Reporting
• Financial Simulation
LOI for the collaboration
Illinois Advanced Energy Ecosystem
Comprehensive strategy that addresses policy, regulation, built environment and capital.
Buy-in and participation of government, academic and business communities.
ISBI will establish Illinois as global leader in “smart buildings”. The project will introduce a new model for building energy management and building energy efficiency retrofits that will potentially redefine the market.
Contact Us
Matthew SummyPresident & CEO
312.494.6747www.ISTCoalition.org
facebook.com/ISTCoalition#ISTCoalition