1. California Energy Commission - Public Interest Energy Research Program Public Interest Energy Research Relevant to Load Management Standards Michael Gravely Team Leader PIER Energy Systems Integration Team California Energy Commission mgravely@energy.state.ca.usmgravely@energy.state.ca.us / 916- 651- 0316

2. California Energy Commission - Public Interest Energy Research Program Outline Demand Response Research Center (DRRC) Activities PIER Emerging Technology Development The Use of Reference Designs in Commercialization Process Energy Storage and Peak Load Shifting Technologies

3. California Energy Commission - Public Interest Energy Research Program Demand Response Research Center Research Overview Load Management Informational and Rulemaking Proceedings March 3, 2008 Mary Ann Piette Lawrence Berkeley National Laboratory Roger Levy Levy Associates

4. California Energy Commission - Public Interest Energy Research Program Presentation Outline DRRC Research Guidance DRRC Research Programs Automating Demand Response* Behavior Demand Response Value Dynamic Tariffs * (model for DRRC research)

5. California Energy Commission - Public Interest Energy Research Program Demand Response Research Center Research Objectives Objective Scope Research Goals Develop, prioritize, conduct and disseminate multi- institutional research to facilitate Demand Response. Technologies, policies, programs, strategies and practices, emphasizing a market connection Cost – develop cost effective approaches to improve DR implementation and operation Technology – evaluate the readiness of customers and buildings to support DR Capability – evaluate and develop strategies to support price and reliability response.

6. California Energy Commission - Public Interest Energy Research Program Demand Response Research Center “Guiding DR Design Principles ” DR Success Factors Design Principles Explanation Customer Choice Create adaptable, realistic operational strategies Minimize adverse impacts Maximize shifting and load impacts Automation Enable and simplify customer choice Enable price and reliability response Integrate DR with system operations Dynamic Rates Integrate efficiency and DR Reflect system costs and needs Establish a customer value function – “clear price and reliability signals that provide a relationship between how customers use energy and what they pay.”

7. California Energy Commission - Public Interest Energy Research Program Automated Demand Response (AutoDR) Targets commercial and industrial customers Provides customers with automated, electronic price and reliability signals. Provides customers with capability to automate site-specific DR strategies customized to their needs and facilities. Provide utilities with automated, dispatchable operational capability similar to conventional generation resources.

8. California Energy Commission - Public Interest Energy Research Program AutoDR is not a demand response program. AutoDR is an open, standardized communication and automation framework that supports all forms of DR. AutoDR expands customer choice, improves DR effectiveness and, addresses the operational needs of the CAISO, and the CPUC vision the objectives outlined in CPUC Rulemaking 07-01-041. AutoDR is being formalized as an open communications standard through an industry consortium lead by the DRRC that includes PG&E, SCE, SDG&E, and CAISO. Automated Demand Response (AutoDR)

9. California Energy Commission - Public Interest Energy Research Program Manual DR - Common Practice

10. California Energy Commission - Public Interest Energy Research Program DRAS Clients – 1. Software only (Smart) 2. Software & Hardware (Simple) DR Automation Server and Client

11. California Energy Commission - Public Interest Energy Research Program Pilot Tests First Stage Commercialization  Accelerate implementation in response to CPUC ACR  Expand application beyond critical peak pricing (CPP) to other DR options.  Expand deployment to market-based aggregators and other non-utility technical resources  Improve DR performance.  Proof of concept  Technology Development  Customer experience  Impact evaluation  Strategy development Full Commercialization  National Standards  State standards in DR design / implementation  Links to Building Code in Title 24  Compliance – Title 24 Global Temperature Adjustment  Expansion to small C/I 2003-20062007-2008Next Steps Automated Demand Response (AutoDR)

12. California Energy Commission - Public Interest Energy Research Program Status of Automated DR Deployment 20062007* Total Participants 13 CPP 37 CPP 53 DBP 62 CBP 152 Total Total Base load8 MW80 MW Total Peak Load Reduced 1 MW25 MW Average Peak Load Reduction 13 %34% DR Programs under AutoDR CPP – Critical Peak Pricing DBP – Demand Bidding CBP – Capacity Bidding

13. California Energy Commission - Public Interest Energy Research Program Automated Demand Response (AutoDR) PG&E AutoDR Test Day – Non-Industrial AutoDR Participants 11000 12000 13000 14000 15000 16000 17000 18000 19000 20000 21000 12:003:006:009:0012:00 Noon 3:006:009:0012:00 Whole Building Power (kW) 8-30-07 Loads 3-10 MA Baseline AutoDR saves Energy Auto-DR Load Impact – 8/30 Non-Industrial

14. California Energy Commission - Public Interest Energy Research Program Load Impact – 8/30 All Participants Automated Demand Response (AutoDR)

15. California Energy Commission - Public Interest Energy Research Program 2007 Customer Response by DR Option Automated Demand Response (AutoDR) Southern California An EDISON INTERNATIONAL ® Company ® ® 0% 10% 20% 30% 40% 50% Average Peak Load Reduction CPP (1) DBP (3) C PP (28) DBP (34) CPP (7) CPP (1) 31% 51% 20% 14% 53% 19% IndustrialCommercialIndustrial CBP (62) 50% Commercial

16. California Energy Commission - Public Interest Energy Research Program CPP Performance With and Without AutoDR Average CCP Peak Load Reduction 8% w/AutoDR -1% w/o AutoDR Automated Demand Response (AutoDR)

17. California Energy Commission - Public Interest Energy Research Program Automation by Sector Programmable Communicating Thermostat Demand Response Automation Client Internet

18. California Energy Commission - Public Interest Energy Research Program Next Steps – Auto-DR and Related Research Complete final draft of Open DR Automation Server and client specification (May 2008) Facilitate implementation of open standards in state and national DR efforts Explore links to Building Codes (Title 24) Ensure compliance of Global Temperature Adjustment in 2008 Building Code (Title 24) Explore continuous energy minimization, energy management systems, and building codes

19. California Energy Commission - Public Interest Energy Research Program Behavior Research DR is a behaviorally driven system Behavior research explores “why and the how” not “who and the what” Current projects – residential and small commercial DR rates and technologies Field tests in summer 2008

20. California Energy Commission - Public Interest Energy Research Program Rate Transition Project Purpose Develop a framework for developing new, innovative and more equitable rate and incentive designs that simultaneously support energy efficiency and demand response. Objectives  Identify the leading issues in rate design  Identify barriers and constraints  Propose remedies and solutions  Develop strawman rate designs that illustrate the solutions  Draw out these themes in workshops  Work closely with the regulators and utilities  Guidance from a national Peer Review Group

21. California Energy Commission - Public Interest Energy Research Program Rate Transition Project 1. Revised Rate Design Principles 2. Recommendations for resolving rate related policy/design conflicts 3. Framework for side-by-side comparisons of rate design impacts on DR, equity, customer bills, risk, etc. Example Products

22. California Energy Commission - Public Interest Energy Research Program Rate Transition Project Example Products The largest impacts are produced by a default CPP/TOU for residential and medium C&I customers, and default RTP for large C&I customers The smallest impacts are produced by an optional RTP for all customers

23. California Energy Commission - Public Interest Energy Research Program DR Value Project 1.Summarize key observations from previous DRRC-sponsored work; 2.Compile and review prior and ongoing DR valuation research and methodology development efforts 3.Develop a provisional list of DR benefit categories that includes all forms of demand response – (1) economic (pricing),(2) reliability (emergency), and (3) financial for both wholesale and retail markets. 4.Consider benefits across stakeholders (e.g., System/Market Operators, Electricity Services Providers, Non-Participating End- use Customers; Generators; and Regulators) characteristic of each type (e.g., price-based or reliability-based) Demand Response program Objectives

24. California Energy Commission - Public Interest Energy Research Program PIER Emerging Technology Development

25. California Energy Commission - Public Interest Energy Research Program Demand Response Enabling Technologies DR Business Network (DR BizNet) Elegant architecture allows utilities to simplify enrollment in DR and other programs Allows more direct control of DR assets  Proving Concepts Developed and demonstrated a “proof of concept” PCT to ensure compatibility with commission standards, establish cost reasonableness and resolve technical issues DR BizNet Architecture Overview Equivalent Programmable Thermostat$12.70 Added Interfaces Communication Interface$3.45 Human-Machine Interface$0.15 HVAC Interface$2.15 Expansion Interface$1.75 Total Bill of Materials $20.20

26. California Energy Commission - Public Interest Energy Research Program Demand Response Enabling Technologies

27. California Energy Commission - Public Interest Energy Research Program Smaller, Cheaper Radio Components No External Components (inductors, crystals, capacitors) 0.13mm CMOS Full digital SPI control of analog/RF blocks 2mm 1mm

28. California Energy Commission - Public Interest Energy Research Program Testing Demand Response Enabling Technologies

29. California Energy Commission - Public Interest Energy Research Program Barrier Immune Radio Communications

30. California Energy Commission - Public Interest Energy Research Program

32. Use of Reference Designs to Accelerate Commercial Adoption of Interoperable Devices and Systems Erich W. Gunther EnerNex Corporation March 3, 2008

33. California Energy Commission - Public Interest Energy Research Program What is a Reference Design? “Reference design refers to a technical blueprint of a system that is intended for others to copy. It contains the essential elements of the system; however, third parties may enhance or modify the design as required. The main purpose of reference design is to support companies in development of next generation products using latest technologies. The reference product is proof of the platform concept and is usually targeted for specific applications.” Source: Wikipedia

34. California Energy Commission - Public Interest Energy Research Program EXAMPLES OF SUCCESSFUL REFERENCE DESIGNS Cell Phone Personal Computer Point of Sale Terminals Automatic Teller Machines Cable Modems USB Thumb Drive

35. California Energy Commission - Public Interest Energy Research Program Facets of a Reference Design Hardware  Cell phone, GPS, meter, thermostat, ATM Software  Word processor, spreadsheet, customer information system, billing application, ATM Networks  Internet, PSTN, cellular, ATM Information and Transactions  EDI, POS, ATM

36. California Energy Commission - Public Interest Energy Research Program Thumb Drive Reference Design

37. California Energy Commission - Public Interest Energy Research Program Benefits of a Reference Design “Reference Design Packages enable a fast track to market thereby cutting costs and reducing risk in the customer's integration project. Reference designs enable customers to shorten their time to market.” 1 Facilitates the rapid development and deployment of interoperable systems, reduces system cost, increases competetion, reduces the potential for vendor lock-in 1 Source: Wikipedia

38. California Energy Commission - Public Interest Energy Research Program Cable Modem Evolution LANcity (Nortel) Com21 Terayon Motorola General Instruments Zenith Hewlett-Packard Cisco Systems (DOCSIS reference design partners)  Toshiba, Philips,… CM Proprietary  CM DOCSIS CM Proprietary Cable Infrastructure, STB, CM Proprietary Cable Infrastructure, STB, CM Proprietary w/ Telco Return CM Proprietary w/ Telco Return CM Proprietary  exited market in 1996 Vendor Lock-In (proprietary systems) Standards Formation Heterogeneous Solutions (DOCSIS best of breed & low cost) 1992199620012004 DOCSIS Standards Initiative Started

39. California Energy Commission - Public Interest Energy Research Program Energy Industry Reference Designs Revenue Meters Substation Automation RTU GEODE WebPAD RD for GE Smart Appliance UtilityAMI/OpenHAN

40. California Energy Commission - Public Interest Energy Research Program Energy Storage and Peak Load Shifting Technologies

41. California Energy Commission - Public Interest Energy Research Program California’s Electricity Demand is Dynamic

42. California Energy Commission - Public Interest Energy Research Program California’s Highest Peak Loads Occur Less Than 60 Hours Per Year

43. California Energy Commission - Public Interest Energy Research Program California’s Highest Peak Loads Can Result in High Energy Prices

44. California Energy Commission - Public Interest Energy Research Program Energy Storage Technologies Can Address California Challenges

45. California Energy Commission - Public Interest Energy Research Program Active Projects  Ultracapacitor Technology  Flywheel Technology  ZBB  VRB  NaS  CAES (underground and modular above ground) PIER Energy Storage Research

46. California Energy Commission - Public Interest Energy Research Program Ultra Capacitor Technology

47. California Energy Commission - Public Interest Energy Research Program Flywheel Technology

48. California Energy Commission - Public Interest Energy Research Program ZBB Technology

49. California Energy Commission - Public Interest Energy Research Program VRB Technology

50. California Energy Commission - Public Interest Energy Research Program Battery Module NAS Battery 8MW / 57.6MWh Fuses Cells 2.2 m 1.7 m Main Pole Sand Heater Vacuum Vessel 0.67 m NaS Technology

51. California Energy Commission - Public Interest Energy Research Program Capital Cost Comparison of Energy Storage Plant Types Technology $/kW + $/kWH * x H = Total Capital, $/kW Compressed Air, CAES - Large (100-500 MW)440 110 450 - Small (10-20MW) AbvGr Str600 80 2 760 Pumped Hydro, PH - Conventional PH (1000MW)130040101700 Battery, BES (target) (10MW) - Lead Acid, commercial 250300 21150 - Advanced (NaS/Flow) 250 500 21250 Flywheel (target) (100kW) 250700 21650 Superconducting (1MW) 2001000 2 2200 Magnetic Storage, SMES (target) Super-Capacitors (best today) 250 120001/60 450 (target) 250 12001/60 270 (target) 250 12001/60 270 * This capital cost is for the storage "reservoir", expressed in $/kW for each hour of storage. For battery plants, costs do not include expected cell replacements. EPRI updates these plant costs as technology improvements occur. of storage. For battery plants, costs do not include expected cell replacements. EPRI updates these plant costs as technology improvements occur. Technology $/kW + $/kWH * x H = Total Capital, $/kW Compressed Air, CAES - Large (100-500 MW)440 110 450 - Small (10-20MW) AbvGr Str600 80 2 760 Pumped Hydro, PH - Conventional PH (1000MW)130040101700 Battery, BES (target) (10MW) - Lead Acid, commercial 250300 21150 - Advanced (NaS/Flow) 250 500 21250 Flywheel (target) (100kW) 250700 21650 Superconducting (1MW) 2001000 2 2200 Magnetic Storage, SMES (target) Super-Capacitors (best today) 250 120001/60 450 (target) 250 12001/60 270 (target) 250 12001/60 270 * This capital cost is for the storage "reservoir", expressed in $/kW for each hour of storage. For battery plants, costs do not include expected cell replacements. EPRI updates these plant costs as technology improvements occur. of storage. For battery plants, costs do not include expected cell replacements. EPRI updates these plant costs as technology improvements occur.

52. California Energy Commission - Public Interest Energy Research Program

55. Questions???