1. Technologies for Demand Response: Enabling Efficiency and Prices to Devices Dr. Arshad Mansoor Vice President, Power Delivery & Utilization 2010 National Town Meeting on Demand Response & Smart Grid June 23-24, 2010, Washington, DC

2. 2 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P Technology in the Context of Demand Response Perspectives Historical Perspective –Direct load control, vertically integrated utilities, integrated with Integrated Resource Plans (IRPs), incentive based Recent Trends –Resource bidding on capacity markets (negative load), Future Outlook –Price responsive load (Prices to Devices) –Technologies that enable both Efficiency & Demand Response

3. 3 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P Prices to Devices Day-ahead Hourly Prices = Smart End-Use Devices

4. 4 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P How We Have Done it Before The Customer Experience Have WE got a deal for you! We send a bonded electrician He drills; installs equipment And YOU save $2 to $5 per month As a result, in general: 60% Say No when installation described 10% Change mind, say No when electrician arrives 10% are found to be ineligible due to code violations 5% of spouses not on enrollment call cancel service within 1 month ~$500 per end-point cost including install cost Bottom line: only 6% of target audience get an install

5. 5 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P The Better Way DR Ready - Off the Shelf Energy SMART Appliances On Sale Now! Customer Installable Economical for even 100W loads Possible Market Transformation through DOE/EPA Labeling

6. 6 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P Why Dont We Have These Products? Unsure of the best communication technology (radio, plc, etc). Communications evolving much faster than appliances Lack of maturity and consensus on the language or protocol to be spoken –Will be addressed by NIST smart grid standards effort Diversity in the logic or function of DR programs. Not enough customer experience to know what is best Smart devices without smart pricing do not work. Dynamic rates must come first: Need Transition Technologies to Fully Enable Prices to Devices

7. 7 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P EPRI DR Ready Project: Defining A Standard Interface One Appliance Works with any Communication Device One Communication Device Works with all Appliances Appliance manufacturers innovate to provide consumer choice to program DR Decouple the Appliance from the Communications and DR Logic

8. 8 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P Power Electronics: Enabling Efficiency and Demand Response Use Electronics to Make Equipment Smart and More Efficient Variable Speed Compressor/Air Handling Unit + Magnetic Ballast for High Intensity Discharge (HID) Lamps Todays Technology Tomorrows Technology Electronic ballast makes HID lighting more efficient and dimmable Electronic Ballast for High Intensity Discharge (HID) Lamps Electronic motor speed control makes HVAC equipment more efficient and controllable

9. 9 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P EPRIs Living Laboratory Evaluate and test energy efficient and DR technologies

10. 10 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P Lab Test Results: VRF 20 – 40% more Efficient than Conventional Split System AC Variable Refrigerant Flow AC Testing Results

11. 11 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P From Laboratory to Field Testing Comprehensive Instrumentation for Measurement & Validation EPRIs Planned Scale of National Deployment 480 Installations of Six Different Future EE and DR Technologies

12. 12 © 2010 Electric Power Research Institute, Inc. All rights reserved. CWG/9464P In Conclusion….Key Technologies for the Next Generation of Demand Response Price Responsive Loads –Need smart pricing –Need smart devices –Standards a key enabler –Modularity – standardized connector decoupled from communication or DR logic protocols Power Electronics Control –Significant opportunity for HVAC and Lighting –Enables energy efficiency, peak demand reduction, as well as ability to modulate output in response to DR signal