ACTIVE DEMAND MANAGEMENT: WHERE ARE WE NOW PLUS A LOOK AHEAD Jeff - - PowerPoint PPT Presentation

ACTIVE DEMAND MANAGEMENT: WHERE ARE WE NOW PLUS A LOOK AHEAD

Jeff Schlegel, EEAC Consultant Team March 20, 2019

www.ma-eeac.org

INTRODUCTION

►The Green Communities Act directs administrators

• f energy efficiency plans to meet “electric and

natural gas resource needs… first… through all available energy efficiency and demand reduction resources that are cost effective or less expensive than supply [emphasis added].”

►EE programs reduce energy demand – passive

demand reduction

►Focus of this presentation is on reducing or

managing energy demand using active demand management (ADM)

►Today: check in on where we are now compared to

the Council’s priorities, plus a look forward

►This presentation follows the PA presentation on

March 20; please review the PA presentation first

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COUNCIL PRIORITIES FOR ADM IN THE 2019-2021 PLAN

Council priority: Include goals specific to active demand management and integrate the delivery of active demand management offerings within the EE programs in the 2019-2021 Plan.

• 1. Move beyond the current demand demonstrations and scale up

ADM activities fully in the 2019-2021 Plan, including claiming demand savings and quantifying impacts.

• 2. Integrate the delivery of ADM offerings with energy efficiency

program delivery.

• 3. Develop a goal for ADM that is separate and distinct from goals

for traditional EE/passive demand reduction. Plan, track, and report the capabilities, performance, and costs of active demand management separately and in a manner that will enable development of and tracking towards the ADM goal.

Priority developed during cross-cutting workshop on 1/30/18, and included in July 31 resolution.

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►Very good progress in moving from demonstrations

to full offerings for 2019-2021 (see PA slides)

− Achieved through early efforts at National Grid and CLC, combined with a range of demonstrations at all PAs − Daily dispatch still a demonstration for 2019 but expected to be a full offering in 2020 ►Open, technology-agnostic offerings provide the

• pportunity for full effort to scale up ADM…

►… though additional targeted efforts and promotion

are needed to scale up to full potential (PAs are on it)

►Questions on equity and who will participate & benefit ►Looking ahead, future focus on next five slides

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EEAC #1: Move beyond the current demand demonstrations and scale up ADM activities fully in the 2019-2021 Plan, including claiming demand savings and quantifying impacts.

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NEW TECHNOLOGY AND CONSUMER BEHAVIOR ARE MAJOR DRIVERS

►Smart thermostats ►Home energy monitoring and energy management ►Connected homes and equipment ►Building and system automation – software and

controls

►DERs (distributed energy resources):

demand resources (EE and ADM), distributed generation, and storage

►Artificial intelligence (AI) is coming

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Ratepayers Customers Prosumers

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HOME ENERGY MONITORING AND ENERGY MANAGEMENT TRENDS

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Systems and tools beyond smart thermostats:

Energy management systems help customers keep tabs

• n their home energy by notifying them when devices

are on or off, monitor energy usage in real time, and display energy consumption for each appliance. And can enable and monitor ADM efforts.

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PURSUING MULTIPLE VALUES – STACKING VALUE AND BENEFITS

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Customer

• Energy, demand, costs
• Other customer value

Utility/ISO systems

• System energy, capacity
• Markets (FCM, other)
• Distribution, transmission

Policy/Commonwealth

• Energy and economic
• Climate
• Equity (who pays/benefits)

Customer Cost-Effectiveness ≠ Program Cost-Effectiveness

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FUTURE OF SOFTWARE & CONTROLS – INTEGRATED VALUE TO CUSTOMERS

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Source: Alex Do, Acuity Brands; presentation at Design Lights Consortium Stakeholder Meeting, July 2017 (Several people have used the 3/30/300 framing of customer value)

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NEAR-TERM FUTURE OF ADM: DEMAND MANAGEMENT, NOT JUST “REDUCTION”

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Source: 2025 California Demand Response Potential Study, LBL, May 2017

ADM Service Types Across Timescales and Objectives to Meet Grid Needs

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►Good initial progress in integrating the marketing

and delivery of ADM offerings for 2019-2021

− EE programs provide the enabling technology and seed the

• pportunity for ADM – smart thermostats, building

management systems, controls and software, etc. − EE programs and delivery channels for marketing/outreach

• Effective smart thermostat recruitment through the OEM
• C&I customer recruitment through sales representatives

− Commercial sales teams adding ADM to suite of solutions ►Still challenges (in evolving markets with new

technology) in developing attractive integrated offers for customers that also provide system value

− New technology keeps coming, features and costs evolving − See value stacking and notes on equity (earlier slides)

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EEAC #2: Integrate the delivery of ADM offerings with energy efficiency program delivery.

www.ma-eeac.org

►Achieved – there are separate and distinct goals for

ADM in the 2019-2021 Plan (per term sheet): Active demand savings of 200 MW summer and 50 MW winter Total demand savings (including active demand) of 665 MW summer and 500 MW winter

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EEAC #3: Develop a goal for ADM that is separate and distinct from goals for traditional EE/passive demand reduction. Plan, track, and report the capabilities, performance, and costs

• f active demand management separately and

in a manner that will enable development of and tracking towards the ADM goal.

www.ma-eeac.org

DPU-APPROVED ADM PLAN FOR 2019-2021 (INCLUDING STORAGE)

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Active Demand Management (ADM) for 2019-2021, Total ADM Including Storage -- Compliance Filing Sectors 2019 2020 2021 2019 2020 2021

A - Residential 8.3 13.5 17.3 1.0 2.0 3.0 B - Income Eligible

• C - Commercial & Industrial

94.8 142.9 192.4 15.4 32.0 44.5 Grand Total 103.2 156.3 209.7 16.4 34.0 47.5 CLC may pursue active demand offerings (included in above) once agreement with Eversource is reached CLC enhanced storage (storage system and performance) is not included in above (not approved by DPU)

Winter

Source: PA statewide data tables, 2019-2021 Plan compliance filing, 02/19/19

Annual Capacity (MW) Annual Capacity (MW) Summer

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APPROVED STORAGE PLAN FOR 2019-2021 (EVs INCLUDED)

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Active Demand Management (ADM) for 2019-2021, Storage and EVs Only -- Compliance Filing Sectors 2019 2020 2021 2019 2020 2021

A - Residential 0.4 2.4 3.5 0.4 2.4 3.5 Storage Targeted Dispatch

• 1.9 2.9

Storage Daily Dispatch 1

• 1.9 2.9
• EV Load Management2

0.4 0.5 0.6 0.4 0.5 0.6 B - Income Eligible

• C - Commercial & Industrial

0.5 15.1 27.1 2.5 7.1 11.1 Storage Targeted Dispatch3 0.5 5.0 10.0 2.5 7.1 11.1 Storage Daily Dispatch 1 0.0 10.1 17.1

• Grand Total

0.9 17.5 30.6 2.9 9.5 14.6 CLC enhanced storage (storage system and performance) is not included in above (not approved by DPU)

1 Per DPU, daily dispatch is demonstration in 2019; expected to be full offering in 2020-2021 2 National Grid plans to claim savings for EV load management, vehicle control 3 Eversource only for C&I storage targeted dispatch in summer

Summer Winter Annual Capacity (MW) Annual Capacity (MW)

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EEAC: PLAN, TRACK, AND REPORT ADM COSTS AND PERFORMANCE

►Achieved – In addition to an active demand

management (ADM) performance goal, the costs, impacts, and economic benefits of active demand management activities will be analyzed and quantified, and the planned and achieved benefits will be reported as part of total portfolio benefits.

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ADM Performance Goal(s) ADM Economic Value Quantified in Benefits and Cost-Effectiveness ADM Costs and Impacts Reported in Data Tables and MassSaveData

Thank you

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