Smart Grid Technologies Technologies and Applications: Dr. Hari Kumar R

Smart Grid
Technologies
and
Applications Dr. Hari Kumar R
Assistant Professor
Department of Electrical Engineering
College of Engineering Trivandrum
Module IV
Dr. Hari Kumar R, Assistant Professor, Department of Electrical Engineering, College of Engineering Trivandrum
Syllabus
Module IV
• Smart Energy Efficient End Use Devices

• Smart Distributed Energy Resources
• Energy Management
• Role of Technology in Demand Response
• Demand Side Management
• Load Curves
• Load Shaping-Objectives-Methodologies-Barriers
• Peak Load Shaving-Constraints-Problem Formulation- Case Study
Dynamic Energy Management
 An innovative approach originally specific to managing load at the demand- side level.
 It incorporates the conventional energy use management principles represented in

demand-side management, demand response, and distributed energy resource
programs and merges them in an integrated framework that simultaneously addresses
permanent energy savings, permanent demand reductions, and temporary peak load
reductions.
 This is accomplished through an integrated system comprising of smart end-use

devices and distributed energy resources with highly advanced controls and
communications capabilities that enable dynamic management of the system as a
whole.
 Also includes distributed energy resources such as solar photovoltaic systems, diesel
generators, and fuel cells.
 The performances of these DERs are also programmed to operate in an integrated

manner with end-use devices at the facility so as to optimize overall system
performance.
Components of Dynamic Energy Management
 Smart energy efficient end-use devices;
 Smart distributed energy resources;
 Advanced whole-building control systems; and
 Integrated communications architecture.
Characteristics of the Components of DEM
Smart Energy Efficient End-Use Devices
 Appliances, lighting, space conditioning, and industrial process equipment with the
highest energy efficiencies technically and economically feasible
 Thermal energy storage systems that allow for load shaping
 Intelligent end-use devices equipped with embedded features allowing for two-way
communications and automated control
 Devices that represent an evolution from static devices to dynamic devices with
advancements in distributed intelligence
Smart Distributed Energy Resources
 Onsite generation devices such as photovoltaics, diesel engines, micro-turbines, and
fuel cells that provide power alone or in conjunction with the grid
 Onsite electric energy storage devices such as batteries and fly wheels
 Devices that are dynamically controlled to supply base load, peak shaving, temporary
demand reductions, or power quality
 Devices that are dynamically controlled such that excess power is sold back to the grid
Advanced Whole-Building Control Systems
 Control systems that optimize the performance of end-use devices and distributed
energy resources based on operational requirements, user preferences, and external
signals from the utility, end-user, or other authorized entity
 Controls that ensure end-use devices only operate as needed
 Controls that allow for two-way communications
 Local, individual controls that are mutually compatible with a whole-building control
system
 Controls that have the ability to learn from past experience and apply that knowledge
to future events
Advanced Whole-Building Control Systems: Functionalities
 Receiving and processing information from sensors
 Sending actuation signals for control of devices
 Learning physical characteristics of the building from sensor information
 Managing time-of-day profiles
 Displaying system status to occupants
 Obtaining command signals and overrides from occupants
 Learning the preferences and patterns of the occupants and
 Receiving and displaying external signals, such as price information from the utility.
Integrated Communications Architecture
 Allow automated control of end-use devices and distributed energy resources in
response to various signals such as pricing or emergency demand reduction signals
from the utility; day-ahead weather forecasts; other external alerts and end-user
signals
 Allow the end-use devices, distributed energy resources, and/or control systems to
send operational data to external parties
 Communications systems that have an open architecture to enable interoperability and

communications among devices
DEM Infrastructure of a Generic Building
DEM Possibilities
 There is significant potential to increase the functionality of typical demand-side

management measures, typical demand response strategies, and typical
implementation of building-level distributed energy resources by combining them in a
cohesive, networked package that fully utilizes smart energy efficient end-use devices,
advanced whole-building control systems, and an integrated communications
architecture to dynamically manage energy at the end-use location.
DEM Possibilities
 Transforms the energy efficient end-use devices and processes associated with typical
demand-side management into smart, highly energy efficient end-use devices and
processes.
 Transforms the standard distributed energy resources associated with typical practice
into smart, environmentally-friendly onsite energy resources that are leveraged to their
maximum potential to benefit the end-user, the utility, and the environment.
Energy Management
 Implementation phase of energy use management consists of several elements used
alone or in combination to effect a change in energy use characteristics at a given site.
 The elements can be divided into seven main categories
 The first five elements are conventionally considered to be encompassed in demand-

side management programs
 The last two elements are often considered separately and fall within demand
response and distributed energy resource programs, respectively.
Energy Management
1. Energy audits and/or reviews of historical energy use
2. Improvements to the operation and maintenance of existing end-use devices and

processes.
3. Replacement or retrofit of existing end-use devices or processes with energy efficient

devices
4. Load shaping strategies
5. Installation of controls to turn end-use devices on/off or up/down as required or

desired
6. Demand response strategies to reduce peak demand temporarily
7. Use of distributed energy resources to replace or reduce dependence on electricity

from the grid.
Demand Side Management
 Clark W. Gellings of the Electric Power Research Institute (EPRI) coined the term
demand-side management in the early 1980s.
 The modification of consumer’s demand of electricity through various methods such as

financial incentives and consumer education
 It is the planning, implementation, and monitoring of those utility activities designed to

influence customer use of electricity in ways that will produce desired changes in the
utility’s load shape, i.e., changes in the time pattern and magnitude of a utility’s load.
 Usually the goal of DSM is to encourage the consumers to use less energy during
peak hours or to move the time of energy use to the off-peak hours viz. night
 Utility programs falling under the umbrella of demand-side management include: load
management, new uses, strategic conservation, electrification, customer generation,
and adjustments in market share.
Need for DSM
 Increasing energy requirement
 Increasing threat of climate change and other environmental considerations
 Energy security
 Huge scope for energy efficiency measures
 The utility will always try to encourage consumers to:

 Use less energy during Peak hours (Peak Clipping)
 Shift energy use to off peak hours (Valley Filling)
 Therefore consumers too have a very important role to play for achieving the
objectives of DSM
Cons
Utility umer
DSM
How??
 To charge higher prices during Peak Hours
 Improving the efficiency of various end uses by using energy efficient appliances,
better house keeping and reducing energy leakages. This is important for agriculture
where energy efficiency is very low (30-50%)
 Promoting use of Energy Efficient Technologies and addressing Aggregate Technical

and Commercial (AT&C) Losses
Load Curves
 A chart illustrating the variation in demand/electrical load over a specific
time.
 Generation companies use this information to plan how much power they
will need to generate at any given time.
Load Shaping Objectives
 Based on the state of the existing utility system, the load shape
objectives can be characterized into six categories
 Peak clipping
 Valley filling
 Load shifting.
 Energy efficiency
 Electrification
 Flexible load shape
DSM- Load Shaping Objectives
 Peak clipping:
 The reduction of utility loads during peak demand periods.
 This can defer the need for additional generation capacity.
 The net effect is a reduction in both peak demand and total energy consumption.
 The method usually used for peak clipping is by direct utility control of consumer appliances or end-
use equipment.
 Valley filling
 A form of load management that entails building of off-peak loads.
 Often the case when there is underutilized capacity that can operate on low cost fuels.
 The net effect is an increase in total energy consumption, but no increase in peak demand.
 A typical example for the creation of valley filling is the energy thermal storage.
 Load shifting:
 Involves shifting load from on-peak to off-peak periods.
 The net effect is a decrease in peak demand, but no change in total energy consumption.
 Typical methods used for load shifting are the time-of-use (TOU) rates and/or the use of storage
devices.
 Strategic Conservation:
 The reduction in end-use consumption.
 There are net reductions in both peak demand (depending on coincidence factor) and total energy
consumption.
 Examples of strategic conservation efforts are appliances efficiency improvement and building energy
conservation.
 Technically speaking, energy efficiency and energy conservation are different since the level of energy
service (e.g., the level of lighting in a room) is preserved under energy efficiency but declines under
energy conservation.
 Strategic Load Growth:
 Consists of an increase in overall sales.
 The net effect is an increase in both peak demand and total energy consumption.
 Examples of strategic load growth include electrification, commercial and industrial process heating and
other means for increase in energy intensity in industrial and commercial sectors.
 Flexible Load Shape:

 Variations in reliability or quantity of service.
 Instead of influencing load shape on permanent basis, the utility has the option to interrupt loads
when necessary.
 There may be a net reduction in peak demand and little if any change in total energy consumption.
 Peak clipping, valley filling and load shifting are classified as load management objectives.
 The primary objective of DSM is to manipulate the timing or level of customer demand in order to
accomplish the desired load objective.
 For example, in the case of under-utilized capacity, valley filling may be desirable.
 On the other hand, in countries with rapidly growing demand, peak clipping or strategic conservation
can be used to defer costly new capacity additions, improve customer service, reduce undesirable
environmental impacts, and maximize national economic benefits.
Benefits
 Customers
 Satisfy electricity demands
 Reduce / stabilize costs or electricity bill
 Maintain/improve lifestyle and productivity
 Utility
 Lower cost of service
 Improve operating efficiency, Flexibility
 Improve customer service
 Society
 Reduce environmental degradation
 Conserve resources
 Protect global environment
Four main types of components in conventional implementation:
1. Energy efficient end-use devices
2. Additional equipment, systems, and controls enabling load shaping
3. Standard control systems to turn end-use devices on/off or up/down as required or

desired
4. The potential for communications between the end-user and an external party.
 The components are implemented separately rather than simultaneously.
 An energy-efficient lighting program may offer incentives for conversion from T-12 lamps and
magnetic ballasts to T-8 lamps and electronic ballasts
 A water-heating program may offer incentives specifically for conversion from gas to electric
water heaters or to heat pump water heaters.
 A building-wide program incorporating a variety of measures coupled with a dynamic link

between the end-use devices, controllers, and energy suppliers so that, the benefits are
optimized.
DSM-Barriers
 Monopoly power market structure.
 No competition which leads to traditional and inefficient tariff structure.
 Lack of creating awareness among consumers about the efficient use of energy.
 Lack of energy efficient environment.
 Huge gap between supply and demand of energy.
 Lack of proper incentive schemes to consumer on using energy efficient appliances
and utility to implement DSM solutions.
 Power system reliability, quality and stability is not able to keep itself in standard
position.
Demand Response
 Refers to mechanisms to manage the demand from customers in response to supply
conditions
 Recent upsurge in interest and activity in demand response, primarily due to the tight
supply conditions in certain regions that have created a need for resources that can be
quickly deployed.
 Demand response functions are often applied to standard end-use devices, with
local control systems and one-way or basic two-way communications
 Demand response can broadly be of two types

 Incentive-based demand response
 Time based rates.
Demand Response
 Incentive-based demand response:
 Direct load control, interruptible/curtailable rates, demand bidding/buyback programs, critical
peak rebate programs, emergency demand response programs, capacity market programs,
and ancillary services market programs.
 Offer payments for customers to reduce their electricity usage during periods of system need or
stress and are triggered either for reliability or economic reasons.
Dynamic Pricing Programs
 Time-based rates:
 Time-of-use rates, critical-peak pricing, and real-time pricing.
 Offered directly to retail customers with the objective of promoting customer demand
response based on price signals
 Dynamic pricing programs are designed to lower system costs for utilities and bring down
customer bills by raising prices during expensive hours and lowering them during inexpensive
hours
 Their load shape objective is to reduce peak loads and/or shift load from peak to off-peak
periods.
 Can be targeted at any class of customer, ranging from the residential class to the commercial
class to the industrial class.
 The market implementation mechanism is the rate design itself.
 This is often accompanied by an educational campaign to inform customers about the benefits
of dynamic pricing.
 Time-of-Use Pricing (TOU):
 This rate design features prices that vary by time period, being higher in peak periods and lower in
off-peak period.
 The simplest rate involves just two pricing periods, a peak period and an off-peak period.
 More complex rates also have one or more shoulder periods.
 Critical Peak Pricing (CPP):

 This rate design layers a much higher critical peak price on top of TOU rates.
 Only used when the utilities observe or anticipate higher wholesale market prices or emergency
 They may call critical events during the specified period. Eg: 3 pm- 6pm on a hot summer week day
 Extreme Day Pricing (EDP).
 This rate design is similar to CPP, except that the higher price is in effect for all 24 hours for a maximum
number of critical days, the timing of which is unknown until a day ahead
 Extreme Day CPP (ED-CPP).

 This rate design is a variation of CPP in which the critical peak price and correspondingly lower off-peak
price applies to the critical peak hours on extreme days but there is no TOU pricing on other days
 Real Time Pricing (RTP).

 This rate design features prices that vary hourly or sub-hourly all year long, for some or all of a customer’s
load. Customers are notified of the rates on a day ahead or hour-ahead basis.
 Each of these rates exposes customers and utilities to varying amounts of risk
 RTP rates are riskiest from the customer’s viewpoint since the utility simply passes
through the wholesale costs to the customer.
 RTP rates have minimal risk to the utility.
 CPP rates carry less risk to the customer, since they know the prices ahead of time
and the time for which these prices will be in effect is limited.
DR vs DSM
 Demand Response (DR) is a term used for programs designed to encourage end-
users to make short-term reductions in energy demand in response to a price signal
from the electricity hourly market, or a trigger initiated by the electricity grid operator.
 Typically, DR actions would be in the range of 1 to 4 hours and include turning off or
dimming banks of lighting, adjusting HVAC levels, or shutting down a portion of a
manufacturing process. Alternatively, onsite generation can be used to displace
load drawn from the electricity power grid.
 DSM programs encourage the end user to be more energy efficient.
 DSM measures can include lighting retrofits, building automation upgrades,
re-commissioning, HVAC improvements, variable frequency drives, etc.
 DSM programs help focus attention to reduce the cost of the demand charge on
electricity bills
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Smart Grid

• Smart Energy Efficient End Use Devices

 It incorporates the conventional energy use management principles represented in

 This is accomplished through an integrated system comprising of smart end-use

 The performances of these DERs are also programmed to operate in an integrated

 Smart distributed energy resources;

 Advanced whole-building control systems; and

 Integrated communications architecture.

 Thermal energy storage systems that allow for load shaping

 Controls that ensure end-use devices only operate as needed

 Controls that allow for two-way communications

 Sending actuation signals for control of devices

 Learning physical characteristics of the building from sensor information

 Managing time-of-day profiles

 Displaying system status to occupants

 Obtaining command signals and overrides from occupants

 Learning the preferences and patterns of the occupants and

 Communications systems that have an open architecture to enable interoperability and

 There is significant potential to increase the functionality of typical demand-side

 The elements can be divided into seven main categories

 The first five elements are conventionally considered to be encompassed in demand-

2. Improvements to the operation and maintenance of existing end-use devices and

3. Replacement or retrofit of existing end-use devices or processes with energy efficient

4. Load shaping strategies

5. Installation of controls to turn end-use devices on/off or up/down as required or

6. Demand response strategies to reduce peak demand temporarily

7. Use of distributed energy resources to replace or reduce dependence on electricity

 The modification of consumer’s demand of electricity through various methods such as

 It is the planning, implementation, and monitoring of those utility activities designed to

 Increasing threat of climate change and other environmental considerations

 Huge scope for energy efficiency measures

 The utility will always try to encourage consumers to:

 Shift energy use to off peak hours (Valley Filling)

 Promoting use of Energy Efficient Technologies and addressing Aggregate Technical

 Flexible load shape

 This can defer the need for additional generation capacity.

 Flexible Load Shape:

Four main types of components in conventional implementation:

1. Energy efficient end-use devices

2. Additional equipment, systems, and controls enabling load shaping

3. Standard control systems to turn end-use devices on/off or up/down as required or

 A building-wide program incorporating a variety of measures coupled with a dynamic link

 Demand response can broadly be of two types

 Time based rates.

 The market implementation mechanism is the rate design itself.

 Critical Peak Pricing (CPP):

 Extreme Day CPP (ED-CPP).

 Real Time Pricing (RTP).

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