Demand flexibility from grid-interactive efficient buildings is an emerging area. This report (including Appendix B) highlights several examples of utility, state, and local programs that are planning, piloting, or demonstrating benefits from demand flexibility from grid-interactive efficient buildings. State and local governments can address barriers to demand flexibility with their partners and stakeholders (see Table 4 and Appendix C) to help cost- effectively address several grid challenges, including growth in peak demand, higher levels of variable energy generation, and increasing electrification of transportation and other new loads.
Table 4. Typical DER Actions Taken by Decision Makers Applied to Demand Flexibility State and Local
Governments66 Utility Regulators Utilities
67 Regional Grid Operators Building Owners
1.
Gather Articulate state or local Engage with regulated Assess achievable potential Engage with states, Participate in pilot projectsinformation goals that demand utilities and stakeholders to of demand flexibility for utilities, DER aggregators, and share best practices and identify
opportunities
flexibility can support Catalog existing pilots,
identify benefits and opportunities related to demand flexibility for utility
residential and commercial buildings and most cost- effective opportunities
and other stakeholders to identify DER participation requirements and
standards, programs, programs, planning, compensation mechanisms
procurements, policies, procurements, and Conduct pilot projects that may need updating and regulations that operations
address demand flexibility Build on results to advance
Identify DER requirements use of demand flexibility Establish a statewide (or that may need updating
municipal or county) forum to consider potential state and local targets for action
2.
Develop and Develop a roadmap with Provide direction on utility Incorporate demand Update participation Participate in roadmap implement stakeholders to advance cost recovery and flexibility in programs, requirements and development (e.g., through strategies tointegrate demand flexibility
demand flexibility in support of state and local goals
Conduct outreach and
compensation mechanisms for participating customers and third-party service providers
planning, procurements, and operations
Test incentive and rate design approaches
compensation methods building owners’ organizations)
education about
opportunities and benefits Enable incentives and rate designs to facilitate use of demand flexibility for utility programs, procurements, and time-varying rate options
66 State energy offices may perform many of these roles at the state level. Other state agencies and local governments that have policy, regulatory, or program responsibilities (e.g., economic development, building codes, environment, financing) or that operate buildings and facilities (e.g., general services, K-12 and higher education, public hospitals) also may have roles. Public utility commissions are addressed separately in the next column. Overcoming some barriers may require state legislative action.
State and Local
Governments Utility Regulators Utilities Regional Grid Operators Building Owners
3.
Accelerate Regularly assess and Provide guidance for Implement enhanced Report on demand Participate in forumsadoption report on progress toward metrics identified in roadmap
Identify strategies to overcome remaining barriers and ways to improve demand flexibility implementation to achieve state or local goals
Continue to support sharing of project and program results and best practices and provide recognition for
outstanding achievements
enhanced economic valuation methods Establish requirements for robust and cost-effective retrospective assessments of demand flexibility performance
Continue to assess barriers and opportunities
economic valuation methods
Conduct retrospective assessments consistent with regulatory guidance
flexibility participation in regional markets and assess impact on cost of grid services procured Continue to assess barriers and opportunities
discussing ways to improve access to utility programs and regional markets for demand flexibility from buildings
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Appendix A: Grid Services That Demand Flexibility in Buildings Can Provide
68D e mand S ide Ma n agement
S t r ategies G r i d Services D e scription of Building Change
K e y Characteristics
Efficiency
Generation: Energy Generation: Capacity T&D: Non-Wires Solutions
Persistent reduction in load. Interval data may be needed for M&V purposes. This is not a dispatchable service.
Duration Continuous Load Change Long term decrease Response Time N/A
Event Frequency Lifetime of equipment
Shed Load
Contingency Reserves Load reduction for a short time to make up for a shortfall in generation.
Duration Up to 1 hr Load Change Short term decrease Response Time <15 min
Event Frequency 20 times per year
Generation: Energy Generation: Capacity T&D: Non-Wires Solutions
Load reduction during peak periods in response to grid constraints or based on time-of-use (TOU) pricing
structures.
Duration 2 to 4 hrs Load Change Short term decrease Response Time 30 min to 2 hrs Event Frequency <100 hrs per yr/seasonal
Shift Load
Generation: Capacity T&D: Non-Wires Solutions
Load shifting from peak to off-peak periods in response to grid constraints or based on TOU pricing structures.
Duration 2 to 4 hrs Load Change Short term shift Response Time <1 hour
Event Frequency <100 hrs per yr/seasonal
Contingency Reserves Load shift for a short time to make up for a shortfall in generation.
Duration Up to 1 hr Load Change Short term shift Response Time <15 min Event Frequency 20 times per year
Avoid Renewable Curtailment
Load shifting to increase energy consumption at times of excess renewable generation output. This is not a dispatchable service but can be reflected through TOU pricing.
Duration 2 to 4 hrs Load Change Short term shift Response Time N/A
Event Frequency Daily
Modulate Load
Frequency Regulation Load modulation in real time to closely follow grid signals. Advanced telemetry is required for output signal transmission to grid operator; must also be able to receive automatic control signal.
Duration Seconds to minutes Load Change Rapid increase/decrease Response Time <1 min
Event Frequency Continuous
Voltage Support
Duration Sub-seconds to seconds Load Change Rapid increase/decrease Response Time Sub-seconds to seconds Event Frequency Continuous
Ramping
Load modulation to offset short term variable renewable generation output changes.
Duration Seconds to minutes Load Change Rapid increase/decrease Response Time Seconds to minutes Event Frequency Continuous
Generate
Ramping Distributed generation of electricity to dispatch to the grid in response to grid signals. This requires a generator or battery and controls.
Duration Seconds to minutes Load Change Rapid dispatch Response Time Seconds to minutes Event Frequency Daily
Generation: Energy Generation: Capacity T&D: Non-Wires Solutions
Duration 2 to 4 hrs
Load Change Dispatch/negative load Response Time <1 hour
Event Frequency <100 hrs per yr/seasonal
Generation: Energy Generation: Capacity T&D: Non-Wires Solutions
Distributed generation of electricity for use onsite and, when available, feeding excess electricity to the grid. This is not a dispatchable service, though metered data is needed.
Duration Entire generation period Load Change Reduction/negative load Response Time N/A
Event Frequency Daily
Note: Response time is the amount of time between receiving a signal from the utility or regional grid operator and the building asset responding to change the load. Duration is the length of time that the load change occurs.
Appendix B: Other Examples of Utility Programs Integrating Demand-Side
Management Approaches
These utility programs supplement the examples interspersed throughout the report. See Table 2 for a guide to the utility, state, and local programs highlighted in the report.
Texas—Austin Energy Power PartnerSM
Grid services: generation capacity, contingency reserves
Austin Energy offers residential, multifamily, and small commercial customers the Power PartnerSM Thermostats program to provide demand flexibility to help meet bulk power system capacity needs through demand response. The program provides rebates and incentives for smart thermostats that control air conditioning systems in buildings.
The utility uses public networks and a demand response automation server to communicate demand response events. While Austin Energy has offered demand response programs since the 1990s, it primarily used one-way radio frequency communication systems until 2013 when it began the Power PartnerSM program. For larger commercial customers, a move to OpenADR through the Load Cooperative program increased response to event calls by more than four times compared to manual demand response. Approximately 65 facilities in Austin Energy’s service area currently receive OpenADR signals.
The program provides customers a $25 energy efficiency rebate for each smart thermostat they install in their existing home or commercial building. (The local energy code requires smart thermostats for new construction of single- and multifamily dwellings.) Over 30 types of thermostats are eligible for the program. Austin Energy offers an additional $85 incentive for each approved, Wi-Fi-connected thermostat that enrolls in the demand response program.*
*Commercial customers can receive Power PartnerSM rebates unless they also participate in the Load Co-op program. If a commercial customer uses OpenADR in the Load Co-op program, they are eligible for $1.45/kWh saved during curtailment events.
Sources: https://savings.austinenergy.com/rebates/residential/offerings/cooling-and-heating/pp-thermostat https://www.peakload.org/AustinAwardDR
https://savings.austinenergy.com/rebates/commercial/offerings/load-management/load-co-op
Vermont—Green Mountain Power, Bring Your Own Device
Grid services: generation capacity, contingency reserves, avoided renewable curtailment, non-wires solutions, voltage support
Green Mountain Power provides incentives for allowing the utility to access energy stored at customer sites through a variety of technologies. The utility taps the stored energy during peak demand hours to help meet bulk power system capacity needs, instead of purchasing more expensive power. The program provides incentives for participants, lowers costs for all customers (since the utility needs to acquire less power during times of peak demand), and is designed to provide demand flexibility in places where it is most needed—in locations with distribution system constraints.
Energy storage units enrolled in the program earn $850 per kW. The program takes steps so customers have the reliability they need. For example, if a weather event is expected to cause outages in the area, the utility adjusts its use of the battery to ensure it has stored energy. Participants with an EV charger can receive a $10 per month bill credit.* Customers who live in areas with distribution system constraints are eligible for an additional $150 incentive for adding a battery to their existing solar PV system. Water heaters with tanks that store thermal energy also are eligible for the program. The program is capped at 2 MW (about 600 customers).
*Battery owners may opt for bill credits instead of an upfront payment. The battery must be enrolled in the program for 10 years.
Sources: https://greenmountainpower.com/bring-your-own-device/
https://greenmountainpower.com/news/gmp-offers-new-bring-device-program-cut-energy-peaks/
Michigan—Consumers Energy, Swartz Creek Energy Savers Club
Grid service: Non-wires solutions
Consumers Energy developed the Energy Savers Club program to test the efficacy of using non-wires solutions to