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1 Getting More Demand Response From the Small Business Customer Mark S. Martinez Manager, DSM Program Development Southern California Edison PLMA Fall.

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Presentation on theme: "1 Getting More Demand Response From the Small Business Customer Mark S. Martinez Manager, DSM Program Development Southern California Edison PLMA Fall."— Presentation transcript:

1 1 Getting More Demand Response From the Small Business Customer Mark S. Martinez Manager, DSM Program Development Southern California Edison PLMA Fall Conference November 7-8, 2006 New York, NY

2 2 Why Is This Topic Important? Demand response (DR) will become a powerful resource for demand side management SCE (and the other IOUs) is investing millions in incentives, awareness, and outreach/education Few programs in the small commercial sector have deployed DR effectively Research is still needed to study small biz needs and effective solutions

3 3

4 4 Historical Peaks at CAISO Year Date Area Load 2005Jul.45,431 2004Sep.45,597 2003Jul.42,581 2002*Jul.42,441 2001Aug.41,419 2000Aug.45,494 1999Jul.45,884 1998Aug.45,811 *ISO peak load reduced after SMUD became their own Control Area.

5 5 Historical Peaks at SCE Year DateArea LoadTemp. 2005Jul. 2121,93489º F 2004Sep. 1020,76288º F 2003Sep. 520,13693º F 2002Sep. 318,82192º F 2001Aug. 717,88985º F 2000Aug. 1619,75793º F 1999Jul. 1319,12280º F 1998Aug. 3119,93598º F 1997Sep. 419,11898º F 1996Aug. 1418,20796º F

6 6 SCE DR program portfolio

7 7 SCE 2006 DR Budget ($mil) Program/ActivitiesExpenseIncentives Reliability Programs (I- 6,BIP, AP-I, SDP) $19.8$115.8* Price Response (DBP,CPP,CPA-DRP) $1.70.3** Customer Awareness, Education & Outreach $11.1$6.0 (TA&TI) Measurement & Evaluation, DR systems, PCT Pilot $5.8- Total Budget$38.4$122.1 *Estimated **2006 DBP event performance

8 8 CASIO Friday, July 21, 2006

9 9 CASIO Monday, July 24, 2006

10 10 SCE System - July 24, 2006 2:33pm Load Shed Demand Response reduces SCE peak to avoid Stage 3 event 1pm Stage 2 10:00am Stage 1 660MW of load shed from I-6 and BIP for 3 hour duration 5:33pm Load Restored 6:14pm Stage 2 cancelled 9:00pm Stage 1& Warning cancelled 7:30am Warning

11 11 I-6 Performance on peak day

12 12 Todays Presentation Topics 1.Small business enabling technology 2.Critical peak demand savings potential 3.Participant reactions/acceptance re: technology 4.Best candidates and businesses if any 5.Research project results and cost effectiveness

13 13 Demand Response Non-EE/DR EE 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 123456789101112131415161718192021222324 Hour Watts per Square Foot Demand Response Defined Energy Efficiency (Blue) reduces load all the time Demand Response (Red) reduces just when we need it

14 14 Distribution of Commercial Buildings within SCE* Small Office17% Restaurant6.3% Retail26% Lodging1.2% Grocery1.6% Large Office1.3% College0.8% School13.1% Warehouse4.7% Health1.4% Misc26% * SCE 1997 Commercial End Use Survey

15 15 Small Customers Can Make a Big Difference Residential – over 4 million 50% saturation of central ACs, average is about 4 tons Small Commercial – over 500,000 75% saturation of central ACs, average each is about 4 tons, with 1.5 unit per service account This represents over 10 million tons of air conditioning on a peak day from residential and small business At 0.5 kW/ton, thats 5,000 MW market potential (currently only 400 MW enrolled, or 8%)

16 16 Customer AC Equipment

17 17 Controllable thermostat – most common DR application

18 18 Two-Way Paging Communications

19 19 Example of 4 degree curtailment

20 20 What are the Small Commercial appliances? Most small commercial customers have packaged AC systems, averaging 2 - 10 tons Other end uses include lighting, office equipment, food prep or storage, water heaters, and business-specific plug loads Overhead lighting circuits deemed best additional option based connected kW

21 21 DR EMS Study Approach Study Approach Installed controllers at 21 sites in 2004 and 2005 Intensively metered 10 sites to assess impacts Comparisons of most similar days, controlled and uncontrolled, at the same site for impact analysis Constraints Required to recruit participants from a random sample All CA critical peak pricing class V (4-hr notice) participants Could not recruit best candidates Did not assess on quantitative level more expanded installation

22 22 Small C/I EMS System Communications device - External switch (this project) - Dial-up modem (this project) - Ethernet card for broadband, or - Automated meter infrastructure (AMI) Analog inputs (4) - Temperature (ambient, freezer, cases) - Power, if CTs Digital inputs (4) - Switches, such as to initiate DR - Power, if KYZ pulses Power and control relays Computerized decision-making and data acquisition system

23 23 Interoperability with all end uses Controlled Loads Lighting Commercial packaged air conditioner Walk-in cooler Ice maker Walk-in freezer Water heater Reach-in cooler Anti-sweat heater Smart Control Logic Overall: Manage demand to a defined maximum during the period, subject to temperature or other over-rides. Not offset. Can assign up to 16 priority levels for control Practices coincident load management Can link relay instruction logic (e.g. if #3 is closed, #5 must be open) Protection from overcontrol Can set maximum off times and minimum on (or run) times to each relay Can set maximum or and minimum temperature overrides for A.C. or refrigeration All relays fail closed, e.g. uncontrolled

24 24 EMS Control Schema

25 25 Findings – Demand Savings 8.5 kW average savings over seven 2-hr events 16% reduction on average 11 kW savings on the one hot (mid-90s) control day 22% reduction due to AC reductions Rebound was negligible Less than 0.5% of baseline demand Savings was consistently 14% to 31% of uncontrolled demand – integrated end use demand limiting

26 26 Findings – Demand Savings

27 27 Findings – Demand Savings

28 28 Findings – Demand Savings

29 29 Findings – Customer Acceptance of EMS RECRUITMENT Needed major education on the concept of demand response even though recruits were already critical peak pricing pilot volunteers (SPP) Needed major education on how technology would reduce blackouts and their power bill (without affecting business ops) After education, majority (not all) accepted the free offer – value proposition REACTIONS TO CONTROL 20 / 21 customers participated through end of pilot (95%) Two customers had comfort issues that needed to be addressed Most were unaware of CPP events and technology activation No product loss or service/utility depreciation

30 30 Findings – Cost Projected Costs: Actual pilot costs are not relevant to future program costs

31 31 Findings – Cost Technical Variables Affecting Installed Cost: Hardware purchase price Distance between equipment Number of items connected Accessibility for communications Paging signal reception Telephone or Ethernet wire runs Ability to do pre-screening studies Utility meter type Obstructions / foot traffic / high ceilings kW of load controlled was NOT a dominant cost variable. Mfr has reported installation costs as low as $1,600 /site in non-DR arena

32 32 Findings – Cost Effectiveness Estimate $450 /kW installed cost, based on Average 75 kW customer 20% savings $7,000 cost per system Improve over all cost-effectiveness by: Requiring ~50 kW+ of controlled load Targeting most suitable facility types Convenience stores Fast food Offices with large number of packaged units (more than ~5) Retail and Commercial Chains Facilities with diverse equipment sets Installing in volume Purchasing in volume Limiting geographical installation area

33 33 Pilot Program Observations Can such a technology cost-effectively reduce demand in the small commercial segment? QUALIFIED YES (depends on the program offer) Program design keys to success: Target most suitable applicants Customer education to enhance savings Install in volume with repeatable footprints Allow the installation teams to develop experience with applications and technology

34 34 Summary The small-medium non-residential sector has vast untapped DR potential – is it cost effective? Small EMS may be a cost-effective tool to capture about 20% of that markets potential DR kW Expected savings/site is about 20% of peak period demand with AC, lighting, and refrigeration The most cost-effective targets are chains and high energy intensity facilities with diverse loads

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