Demand Response in Utility EE Programs for India

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Customized Energy Solutions Ltd. 1528 Walnut Street, 22nd Floor

Philadelphia, PA 19102 USA Phone: +1-215-875-9440 Fax: +1-215-875-9490 [email protected]

Customized Energy Solutions India Pvt. Ltd. A 501, GO Square Aundh - Hinjewadi Link Rd, Wakad Pune, Maharashtra 411057 India Phone: 91-989-205-4504 [email protected]

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Demand Response in Utility EE

Programs for India

Presented by

Dr. Rahul Walawalkar CEM, CDSM

Executive Director, India Energy Storage Alliance & VP, Emerging Technologies & Markets

Customized Energy Solutions

19th_{December 2012} Analyze. Simplify. Implement.

Outline

• Introduction

• Overview of DR program

• Overview of the Tata Power DR program

• Introduction to Auto DR and Energy Storage

• Q&A

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Introduction to Customized

We maximize value of existing and emerging electric infrastructure through active resource management. Analyze. Simplify. Implement.

Experience in North America and India

 Customized Energy Solutions helps over 300 clients across all 7 competitive

electricity markets in USA and India

 In 2010, Customized joined the Indian Energy Exchange (IEX) as a

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Experience with DR and Energy Storage

• Launched Customized’s DR service offerings in US in 2004, which currently manages ~500 MW of DR in various regions

• Have provided inputs to FERC on market based DR and energy storage • Launched India’s 1st_{Voluntary DR program for Tata Power in Mumbai in}

2011 with a target participation of 15 MW

• The program was recognized as most innovative energy service by CII • Have worked on numerous projects since 2004 with all energy storage

technologies including Pumped Hydro, CAES, NaS, Flow Batteries, Li-Ion Batteries & flywheels.

• Authored number of industry reports including market analysis reports for NY State Energy Research & Development Authority & US

Department of Energy’s National Energy Technology Labs.

• Have participated as part of expert evaluation team for various energy storage demonstration projects in US

• Serve on Board of Directors of Electricity Storage Association and served as part of Steering Committee of international “Energy Storage

Challenge” 2011 5 Analyze. Simplify. Implement.

International Experience

Number of customers by DR MW participation

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Customized’s DR Objectives

• Understand DR Program Requirements to allow our

Clients to offer DR as a value-added service to their

customers

• DR Resources have the capability to reduce load or

have back-up behind-the-meter generation

• Experience in implementing DR in both US and India

• Have played critical role in development of DR

programs in both US and India through policy

discussions at various ISO/ RTOs, FERC as well as India

state regulators and industry forums such as AEEE

Confidential (www.ces-ltd.com) 7

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Demand Response can help balance supply &

demand

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Energy-Based Programs

– Customer payments based on load reductions

• Load reduction tied to market price signal

– DA, RT or self-schedule

– Load Reduction Measurement (Measurement & Verification) – Customer Baseline (CBL)

– Reduction calculated based on what customer would have used absent a load reduction

– FERC Order 745

• Pay full LMP to for economic load reduction above a certain price.

– Economy and LMP payment policy have affected

participation

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Framework for DR benefits

1 0

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FERC Order – 31

st

Dec 2007

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Reliability-Based Programs

– Customer payments based on capability to reduce load

during system emergencies

• ISO or Utility calls interruption

• Load Reduction Measurement (Measurement & Verification)

– Generally based on load reduction capability

– Typically a performance test required if no event occurs – FERC proceeding on M&V methodology in PJM.

• Payments tied to capacity market payments to generators in most ISOs

– Most DSR participation in these programs

• Participation required only a few times per year • Considerable Value

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Ancillary Service Programs

– Synchronous or Spinning Reserves

• Load reduction must be achieved in 10 minutes • Good Value for participation

– Regulation

• Continuous movement to ISO signal usually in both directions (up & down); difficult for typical DSR customers

• Very High Value for customers

• New technologies look promising (flywheel, batteries)

– Operating Reserves

• 10 -30 minutes load reduction requirements • Generally low value for customers

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Thermal Ice Storage

Variable Speed Drives

Building Automation Emergency Generators

Lighting Controls

Energy Efficient Motors

Air Compressor System

Integrating energy efficiency and demand

response

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Tata Power Demand Response –

Program Features

• Program approved by the Hon’able Maharashtra Electricity Regulatory Commission

• Program designed to involve Customers during high-cost power purchase and transmission/distribution network constraints

• Program to be called for maximum 100 hours in a year – each event to be of 2 hours

• Program tenure to last for 1 year now and extendable to 3 years • Customer participation is VOLUNTARY – no penalties

• Customized Energy Solutions India Pvt. Ltd. selected through a competitive bid based on its technical strength

– Tasked to enroll 15 MW of curtailable load

– Pay enrolled Customers per kWh of verified load curtailment

Analyze. Simplify. Implement.

Steps by step program implementation

• Enroll Consumers in the program - Sign a Memorandum of

Understanding between Customized and Tata Power Customers • Review past Energy Audit reports; energy use data

• Discuss DR technical options with Facility Managers/Engineers; some examples

– Coinciding mandatory DG test run with DR event period – HVAC temperature adjustments

– Staggering of chiller/pumps operations – Use of thermal storage / energy storage – Lighting controls

– Control on non continuous process loads and switching off shedable load • Test Demand Response Calls

• Participate in the Demand Response events when called by Tata Power

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Available DR Capacity Vs Actual Performance

Confidential (www.ces-ltd.com) 17 5.2 5.1 4.4 7.0 9 10 6 7 9 12 15 16 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Event 1 Event 2 Event 3 Event 4 Event 5 Event 6

MW

Actual DR Available DR capacity

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Cumulative DR performance report for DR

Manager

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19 Confidential (www.ces-ltd.com)

Load curtailment example

• Staggering of operation

0.76 0.79 0.71 0.63 0 0.2 0.4 0.6 0.8 1 1.2 1.4 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 09:00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30

Load Reduction (MW) Customer Base Line (MW)

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LCM- AC temp increase

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30

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LCM- DR on Chiller

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 20:00 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30

Customer Base Line (MW) Actual Customer Load (MW)

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Access to individual Customer Reporting of

ADR event

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Customized’s Web based DR portal

Select meter number

Select interval Select event day Select

customer

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Clear visual representation of the ADR event

data

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Comparison of baseline vs actual event day

data

Confidential (www.ces-ltd.com) 25 Revenue earned / Cost saving Analyze. Simplify. Implement.

Advantages…

• Automated calculations of Customer Base Line

• Event wise performance evaluation

• Meter wise performance evaluation

• Performance evaluation for different time slots

• Access to aggregate reports for Utility to compare

performance

• Individual access for customers to understand

their own performance wrt different load

curtailment strategies

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Customer Mix

Confidential (www.ces-ltd.com) 27 Data centre 3% Software 21% Offices 34% Hospitality 6% Mall 9% Healthcare 3% Manufacturing 9% Pumping 6% Infra Set up 9%

Present DR Customer Mix

Data centre Software Offices Hospitality Mall Healthcare Manufacturing Pumping Infra Set up Analyze. Simplify. Implement.

Auto DR communications using Internet

Utility EMS Plant DCS CES RTU ECN Router SCADA Network

Serial or TCP/IP / MODBUS/DNP

Voice

MMI MMI

Voice

CES Control Room

ECN Communications CES SecureNet-RT Technology CES SecureNet-RT Technology Internet (Encrypted) HIS MMI Voice CES SecureNet-RT Technology T1 MPLS DATA ICCP Customer Site 1 Customer Site 2 CES RTU

Serial or TCP/IP / MODBUS/DNP Plant

DCS

Replaces DPG or RIG at Customer Site and Consolidates ECN Connections 2 – 10 seconds 2 – 10 seconds “Instantaneous” “Instantaneous” CAISO Meter CAISO Meter Utility Meter System

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Role of Energy Storage

29 Adapted from EPRI & AEP presentation

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Emergence of

Electric Energy Storage Technologies

Source: Electricity Storage Association www.electricitystorage.org

Thermal Storage

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Energy Storage Applications for C&I

Customers

31 Wind Farm Output With Firming

9 10 11 12 13 14 15 168135202269336403470537604671738805872939100610731140120712741341140814751542160916761743181018771944201120782145221222792346241324802547

2 Hour Event 2 Second Resolution

M Ws 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% St at e o f C h ar ge Peak Shaving

Power Quality Improvements Wind Firming

Load Levelling

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Energy Storage Potential in India

2013-17

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IESA conducted technical tour

(Oct 28th_{-Nov 3}rd₎

33 Confidential (www.ces-ltd.com)

Next IESA Tour scheduled in March 2013.

For more information please visit us at www.indiaesa.info Analyze. Simplify. Implement.

Summary

• There is tremendous growth potential for

voluntary DR programs in India

• Current grid and supply mix is not geared to tackle

the potential challenges that could impact power

quality and reliability of the grid with growing

renewable penetration

• Need to learn from international experiences for

leap frogging in this sector

• We need the right regulatory policies and pricing

mechanisms for creating business case for

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Contact US

Customized Energy Solutions India Pvt. Ltd.

A 501, GO Square Aundh - Hinjewadi Link Rd, Wakad

Pune, Maharashtra 411057 India Phone: 91-20-32407682

[email protected]

Customized Energy Solutions Ltd.

1528 Walnut Street, 22nd_Floor

Philadelphia, PA 19102 USA Phone: +1-215-875-9440

Fax: +1-215-875-9490 [email protected]

Rahul Walawalkar

VP, Emerging Tech & markets Customized Energy Solutions

[email protected] US Cell: +1-516-639-5391 India Cell: +91-9892-054-504