1. Demand Response Research and Capabilities at LBNL Chuck Goldman CAGoldman@lbl.gov Lawrence Berkeley National Laboratory Midwest Demand Response Initiative Steering Committee Kick-Off Meeting Chicago, Illinois February 9, 2007

2. Overview of DR Research at LBNL  Electricity Markets and Policy Group  Conducts research and provides technical assistance to policymakers on demand response –and utility system planning, energy efficiency, renewable energy, power system reliability, and DG  Demand Response Research Center  LBNL manages a multi-institutional center for DR research, funded by the California Energy Commission’s Public Interest Energy Research Program  LBNL projects focus on developing technologies and protocols for Automated Demand Response (Auto-DR) for C/I customers

3. DR Market Assessment & Valuation  Estimating Demand Response Potential Among Large Commercial and Industrial Customers: A Scoping Study  Develops analytical techniques and identifies data sources for conducting demand response market potential studies  Benefits of Demand Response in Electricity Markets and Recommendations for Achieving Them  A DOE Report to U.S. Congress (Section 1252 of the Energy Policy Act of 2005)  Framework for assessing DR Benefits (and costs); comparative review of existing studies; high-level policy recommendations for developing DR nation-wide

4. Tracking DR and RTP Program Experience  DR Program Activity and Impacts: Summer 2006  Interviewed ~30 ISO/utility program managers to assess DR program experience; snapshot of “state of DR market”  Real-time Hourly Pricing as a Default Service Tariff  Conducted stakeholder interviews and in-depth review of regulatory records in all five states where RTP hourly pricing had been adopted as the default service for large customers (through Summer 2004)  Characterized experiences with, and potential for, this form of dynamic pricing to serve as a source of demand response  Survey of Utility Experiences with RTP as an Optional Service  Conducted interviews with ~40 utilities offering optional RTP programs to characterize their actual/potential role as a source of DR

5. DR and RTP Program Evaluation  Niagara Mohawk (National Grid) Day-Ahead RTP for Large C&I Customers  Estimated price elasticities for 120 customers for five years; characterize price responsiveness across customer market segments; and DR potential  In-depth customer interviews; assess factors affecting participation in hourly pricing and price responsiveness  Evaluation of NYISO DR Programs (2001, 2002)  Customer survey: barriers, factors influencing decisions to participate, curtail; role of enabling technologies  Estimated customer price elasticities and market benefits

6. DR Technical Assistance  Direct Technical Assistance  Technical Advisor to New-England Demand Response Initiative (NEDRI)  IEA Demand Response Resource (DRR) Program and Market Analysis project  ISO-NE DR Program Design  New Jersey Multi-year DR Strategic Plan  NYSERDA DR Programs  Measurement & Verification Methods  Developed M&V Protocol for New England ISO (and NYISO) DR program for non-interval metered customers

7. LBNL Demand Response Research Center Activities Recent and Ongoing Projects Evaluation of RTP for Large Users Demand Shifting with Thermal Mass Automated Demand Response in Commercial Buildings Project 1 Project 2 Project 3 New Projects Industrial DR – Strategies in Audits Industrial DR in Food Processing DR Behavior Solicitation (2-3 Projects Forthcoming) Project 4 Project 5 Project 6

8. Auto-DR System Overview Demand Response Automation Server (DRAS) Internet Relay Client & Logic with Integrated Relay (CLIR) Utility Utility or IOU Event Trigger XML Modbus

9. Auto-DR Results: Peak Demand Savings in 2006 CPP Program Average reduction was 14% during 3 hour peak period Technology performed well: continued use during heat wave

10. For additional information... Electricity Markets and Policy Group http://eetd.lbl.gov/ea/emp http://eetd.lbl.gov/ea/emp/drlm-pubs.html Demand Response Research Center http://drrc.lbl.gov