Demand Side Integration Experiences Mark McGranaghan Director, Smart Grid Research ADDRESS Workshop June 9, 2010 Clamart, France

Operating Today’s Grid Balancing Forecastable Load with Dispatchable Generation Base Load Generation Load Following Generation Bulk Energy Storage + +/– Here is that same equation expanded into components. This is probably not how many of you would write the equation, but bear with me, because I think this is a very useful way to think about it. First let’s look at the supply side. What these have in common is that they are all dispatchable. At any instant in time you can provide this quantity of power with certainty. Now let’s go to the demand side of the equation. What these componets all have in common is that they are predictable, but not dispatchable. Let me go through one. Built-in demand is all of the demand that would exist on a system at any instant in time assuming that all consumers, industrial, commercial, and residential, have time-independent electricity rates and are going about their normal day-to-day lives. Demand response is the incremental decrease or increase in demand that occurs because some electricity consumers are modifying their electricity consumption at a given instant in time because they are responding to time-dependent electricity prices. I put renewables and fuel-based distributed generation on the demand side of the equation because they have the same characteristic as demand – because they are intermittent, they are predictable but not dispatchable. For me they are best thought of as negative load. One exception for renewables are dispatchable biomass facilities need to be included on the supply side. Built-in Demand Interruptible Load DR = –

Operating Tomorrow’s Grid Balancing Variable Generation with Unpredictable Demand-side Resources Base Load Generation Load Following Generation Bulk Energy Storage Centralized Wind & Solar + +/– + Variable Here is that same equation expanded into components. This is probably not how many of you would write the equation, but bear with me, because I think this is a very useful way to think about it. First let’s look at the supply side. What these have in common is that they are all dispatchable. At any instant in time you can provide this quantity of power with certainty. Now let’s go to the demand side of the equation. What these components all have in common is that they are predictable, but not dispatchable. Let me go through one. Built-in demand is all of the demand that would exist on a system at any instant in time assuming that all consumers, industrial, commercial, and residential, have time-independent electricity rates and are going about their normal day-to-day lives. Demand response is the incremental decrease or increase in demand that occurs because some electricity consumers are modifying their electricity consumption at a given instant in time because they are responding to time-dependent electricity prices. I put renewables and fuel-based distributed generation on the demand side of the equation because they have the same characteristic as demand – because they are intermittent, they are predictable but not dispatchable. For me they are best thought of as negative load. One exception for renewables are dispatchable biomass facilities need to be included on the supply side. Built-in Demand Interruptible Load DR Price Responsive DR Distributed Generation = – +/– – Distributed Storage (including EV) +/– New “Demand-side” Resources

Use Cases for Demand Side Resources Applications Integration with the generation market Frequency regulation Peak shifting Relief for local congestion and overloads (integration with EMS and DMS) Implementation Approaches Price Direct Control Combination Voltage control?

Demand Side Integration involves all the domains

Presentations ■ Integral Project Mr. Hans AKKERMANS, VU University Amsterdam, The Netherlands ■ BeyWatch Project Mr. Pierre Y. PLAZA TRON, Telefonica Investigación y Desarrollo, Spain ■ SmartHouse/SmartGrid Project Mr. Koen KOK, Energy research Centre of the Netherlands, The Netherlands ■ ComEd Customer Application Pilot Mr. Matt WAKEFIELD, EPRI, USA ■ ESB smart grids demonstration project Mr. John SIMMINS, EPRI, USA ■ Worldwide experiences of consumers’ recruitment Mrs. Sarah MANDER, University of Manchester Literature, UK