Automated Demand Response –A Critical System Resource

6 December 2010

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Nearly 50% of Honeywell’s product portfolio is linked to energy efficiency. The U.S. could reduce their energy consumption by 15 – 20% simply by

immediately & comprehensively adopting existing Honeywell technologies.

Industrial Process Efficiency Energy Efficiency, DemandResponse & Smart Grid

Energy Performance Contracts

Fuel Efficiency

Air Traffic Modernization Biofuels Green Buildings Reduced Emissions

Creating sustainable jobs today using existing technology and infrastructure

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Smart Grid

• Installed over one million demand response devices

• Recognized leader in Automated Demand Response

• Novar business manages 6 GW of customer load

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Honeywell Utility Solutions

Utility specialists backed by the resources of a global Fortune 100 company, with services provided to over 10 million utility customers

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Common Global Objectives

• Reduce electricity supply costs • Reduce GHG emissions• Build more supply or reduce electric demand• Improve reliability of electrical supply • Reduce congestion constraints

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Energy…A Balancing Act

Utility

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Moving Electricity

Constant Balancing Act. Reliable and Quality Power.

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Establish and Maintain Meaningful Interaction Between Energy Users and Suppliers within the

Evolving Energy Markets

Our Focus

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Traditional DR Did Not Meet Needs

• Additional tools to manage growing amount of intermittent renewable generation

• Increase involvement of distributed resources in system management- Concern over frequency regulation

• Greater predictability in demand response resource

• More focus on Cyber security is vital• Increase involvement of building

controls companies to expand role of distributed resources

Transmission System OperatorsTransmission System Operators Distribution UtilitiesDistribution Utilities

• Seek increased integration of demand response and energy efficiency

• Want more direct relationship with C&I customers

• Seek “Clean Capacity” vs. reliance on back-up generation

• Need real time information for DR event progress

• Need open systems with upgradeable communication modules

• Seek new resources for ancillary services, load management and system operation

• Geography specific DR will be of great value in managing congestion, outage management and timing (planning) capital (T&D) upgrades

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Architecture for AutoDR

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Automated Demand Response (AutoDR)

Utility Owned Consumer Owned

• acknowledgements• price signals• reliability signals

Utility

Utility messaging and settlement

system

DR Program

Comm Dev

CLIENTInterval

Meter

Facility ManagerHTTPS over TCP/IP

HTTPS over TCP/IP(Client/Server - polling)

EMCSGateway

BacNETLonWorks

ZigbeeEtc.

Lighting

BacNETLonWorks

ZigbeeDALIEtc.CLIENT

Lighting Controls

HVAC

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OpenADR within the Smart Grid

• Released as official CEC/LBNL specification1

• Identified as key standard by NIST in National Smart Grid Initiatives2

• Adopted and being developed as a formal standard by OASIS & UCAIug• FERC recognizes standardizing demand response signaling could make

enable broader participation3

1 Open Automated Demand Response Communication Specification, version 1.0: http://www.openadr.org/pdf/cec-500-2009-063.pdf2 NIST Special Publication 1108: NIST Framework and Roadmap for Smart Grid Interoperability Standards, Release 1.0http://www.nist.gov/public_affairs/releases/upload/smartgrid_interoperability_final.pdf

3 Feneral Energy Regulatory Commission Staff, National Action Plan on Demand Response: http://www.ferc.gov/legal/staff-reports/06-17-10-demand-response.pdf

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OpenADR Client Development Program

• Adura Technologies• Advantech• Bentley Systems• California Lighting Technology Center• Consolidated Energy Design, Inc. • Daikin• Direct Energy• Echelon• Emacx Systems• EnergyICT• Energy Management Solutions• e-Radio Inc.• Exergy Controls• EZ-Integration, Inc. • Global Energy Partners (GEP)• GridManager A/S• Hunt Power• Heschong Mahone Group (HMG)• Honeywell• IC Systems

• iMonitorEnergy (iME)• Johnson Controls• Lawrence Berkeley National Labs (LBNL)• LimeAmps• Lutron• Lynxspring• Mitsubishi Electric• Novar• Pacific Rim Mechanical• Powerit Solutions• Richard-Zeta• REGEN• RTP Controls• Schneider Electric• Siemens• Stonewater Control Systems• Southern California Edison• Trane• Universal Devices• WattStopper

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AutoDR Deployment Example

• U.S. Department of Energy’s Smart Grid Investment Grant Project

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• Program development

• Customer enrollment

• Customer site optimization

• Program management

• Monitoring and reporting

• Turnkey energy cost savings

• Automated participation

• Self funding opportunities

• Monitoring / reporting of results

Tridium Controller

• Compatible with 99+% of BAS systems

• Customer Dashboard

DR Automation Server

• Event Control

• Utility Dashboard

UTILITY NEEDS

CUSTOMER NEEDS

Only Company Selected for AutoDR

• 2009 Recovery Act Selection - Category 2: Customer Systems- Recovery Act Funding Awarded: $11,384,363- Total Project Size: $22,768,726

• CPP Tariff Creation

• System Planning

• Event Notification

• Incentive Payment

• Regulatory Reporting

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Broad Array of Tools

• User screens• Log-in security• Account Set-up• Program Creation• Event Creation• Event Display• Event Response

Schedule• Participants• Participant Creation• Logs

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• C&I Automated DR • Capacity Bidding

Program (CBP)• Critical Peak

Pricing (CPP)• Critical Peak

Pricing Default (CPPD)

• Demand Bidding Program (DBP)

• Demand Response Contracts (DRC)

• Participating Loads (PL) (pilot)

• Peak Choice (PC)• Peak Day Pricing

(PDP)• Real Time Pricing

(RTP)

Types of Rates/ Tariffs and DR Programs

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Key Lessons

• Focus on secure and scalable solution• Require interoperable, standards-based approach• Leverage automation, which is essential for reliable

capacity• Enable commercial and industrial customers to

become active participants in ensuring system reliability

Increasingly Important Resource. Readily available.

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How Many Do You Need?

40 Facilities

Hotels – 2Hospitals – 1Real Estate – 2Commercial - 35

@ 3MW Averageper facility

120MW

Hotels – 15-20%Hospitals – 7-15% Real Estate – 10-15 %Commercial – 15-20%

Potential DR thru ADR

@ 14% Averageper facility

20MW

“Virtual Power Plants”

Peak Reduction

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Thank you