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Demand Response Programs
www.DemandResponsePrograms.com

Demand Response Programs

What are Demand Response Programs?

Demand Response Programs are programs usually designed and offered by electric utilities that offers those clients that sign-up for specific DR programs with financial incentives and other benefits that help those participating customers to curtail energy use. These actions by the electric utilities and participating clients provide a reliable, predictable amount of power (megawatts) that the ISO's and RTO's can count on during an emergency when energy supplies are low, and there is an inadequate amount of available power generation. The electric utilities typically require that those customers that enroll in their Demand Response Programs install certain software and hardware, that communicates with these client's online energy management systems, and can control these client's electric power requirements as needed.

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What is Demand Response and How is it Different from "Demand Side Management"?

"Demand Response" is a subset of Demand Side Management (DSM) or a potential Demand Side Management program solution which helps make the electric grid much more efficient and balanced by assisting the electric grid's commercial and industrial customers reduce their electric demand, and/or shifts the time period when they use their electricity, and/or prioritizes the way they use electricity, and in so doing, reduces their overall energy costs. A Demand Side Management Program will include measures that promotes the following:

• Reduced customer peak and overall energy demand

• Improves the electric grid's reliability

• Balances the electric grid through increased efficiency

• Energy efficiency

• Manages electricity costs

• Conservation through both behavioral and operational changes

• Load management

• Fuel switching

• Distributed energy

• And provide systems that encourage load shifting or load shedding during times when the electric grid is near its capacity or electric power prices are high

Demand Response has also been defined as a "Demand Side Management" subset that is a set of time dependent activities that reduces or shifts electricity use of selected customers.

Electric power generation and distribution systems are strongly affected by supply-side policies (how, when, and where to generate electricity, how to couple generation into the grid, how to transmit and distribute generated electricity) and demand-side policies (pricing schemes, conservation efforts, customer premises automation, and, in extreme circumstances, rolling blackouts). Demand-side programs focus on reducing the peak-to-average demand profiles through automation in the customer premises.

What is Automated Demand Response?

Automated Demand Response is a Demand Side Management solution that is specifically designed for a customer's specific location, energy/power requirements, and also for the specific electric rates for that customer's location. 

Automated Demand Response does not involve human intervention, but is initiated at a facility through receipt of an external communications signal. Automated Demand Response is a rather new area of DSM technologies and may provide a lucrative revenue stream for customers who can curtail electric load in response to demand incentives, ICAP payments, and/or commodity prices. Automated demand response technology seeks to automatically, through software and hardware applications, to respond to variations in the electricity/power market prices.

Demand Response and Demand Side Management can be achieved through demand reduction, by shifting load to a less expensive time period, or by substituting another resource for delivered electricity (such as natural gas or onsite power generation, also known as "distributed generation."

Demand Response (DR) is a set of activities to reduce or shift electricity use to improve electric grid reliability, manage electricity costs, and ensure that customers receive signals that encourage load reduction during times when the electric grid is near its capacity. The two main drivers for widespread demand responsiveness are the prevention of future electricity crises and the reduction of electricity prices. Additional goals for price responsiveness include equity through cost of service pricing, and customer control of electricity usage and bills. The technology developed and evaluated in this report could be used to support numerous forms of DR programs and tariffs.

A recent pilot test to enable an Automated Demand Response system in California has revealed several lessons that are important to consider for a wider application of a regional or statewide Demand Response Programs for all utilities and their customers.

The six facilities involved in the site testing were from diverse areas of our economy. The test subjects included a major retail food marketer and one of their retail grocery stores, financial services buildings for a major bank, a postal services facility, a federal government office building, a state university site, and ancillary buildings to a pharmaceutical research company. Although these organizations are all serving diverse purposes and customers, they share some underlying common characteristics that make their simultaneous study worthwhile from a market transformation perspective. These are large organizations. Energy efficiency is neither their core business nor are the decision-makers who will enable this technology powerful players in their organizations. The management of buildings is perceived to be a small issue for top management and unless something goes wrong, little attention is paid to the building manager's problems. All of these organizations contract out a major part of their technical building operating systems. Control systems and energy management systems are proprietary. Their systems do not easily interact with one another. Management is, with the exception of one site, not electronically or computer literate enough to understand the full dimensions of the technology they have purchased. Despite the research teams development of a simple, straightforward method of informing them about the features of the demand response program, they had significant difficulty enabling their systems to meet the needs of the research. The research team had to step in and work directly with their vendors and contractors at all but one location. All of the participants have volunteered to participate in the study for altruistic reasons, that is, to help find solutions to California's energy problems. They have provided support in workmen, access to sites and vendors, and money to participate. Their efforts have revealed organizational and technical system barriers to the implementation of a wide scale program.

What is Battery Energy Storage?

Battery Energy Storage, and Battery Energy Storage systems (BESS) use stored electrical power in batteries, and feed this energy to the electric grid (building, or facility) at times when it makes economic sense.  For a "Net Zero Energy" building or facility, a Solar Cogeneration, or Solar Trigeneration energy system is used that stores excess solar power in the Battery Energy Storage system during the daytime, for use when the sun goes down, and during inclement weather.

Battery Energy Storage is an ideal solution for utility-scale wind farms, particularly in Texas, when most of the renewable energy is generated at night when the power isn't needed.  

Battery Energy Storage is also an ideal demand side management or load leveling solution.

A new Net Zero Energy building to be built in Austin, Texas will feature a solar cogeneration system that is integrated with a Battery Energy Storage system - storing excess energy generated during the daytime for use after the sun sets and during periods of inclement weather. The owners are presently considering a "grid free energy" (building will be off the grid - not connected to the electric grid) solution as well as Platinum LEED certification for their new commercial building.

What are Flywheel Energy Storage systems?

Flywheel Energy Storage systems act as mechanical batteries that store power kinetically in the form of a rotating mass, or "flywheel."

When the grid goes down, the power stored by the rotating flywheel is converted to electrical energy through the flywheel’s integrated electric generator. The system provides the DC energy to the Uninterruptible Power Supplies system until grid power is restored or the facility's back-up power generator can be started. Once either the utility is restored or the genset provides power to the input of the Uninterruptible Power Supplies, the Flywheel Energy Storage system will be re-charged by taking some current from the DC bus of the Flywheel Energy Storage until it is back up to full speed.

Diagram from the Dept of Energy

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How Flywheel Energy Storage is Being Applied

The flywheel energy storage system consists of an array of flywheel energy storage modules and power conversion electronics packaged in a standard 12’ x 40’ shipping container. This mobile container would interface with the grid’s three-phase 480-volt cables via a step up transformer. This matrix is capable of storing and recycling 250 kWh’s of energy. The rated discharge rate of a matrix is 1 MW therefore each container will provide rated power for 15 minutes or lower power for an extended period.

Monitoring and data acquisition has been specified such that system availability and power/energy parameters will be accessible via the website. Any time the system is operated, the kilowatts supplied or absorbed by the storage unit and the total system efficiency will be viewable via graphical display by day, week, month, etc.

While performing the Frequency Regulation, the flywheel energy storage system will receive two input signals from the System Operator.

1. Regulation Signal (RS): This will be the amount of regulation to be provided over the next time step. This value will be between (-)100KW and (+) 100KW. Minus refers to absorbing 100kW of power from the Grid. Plus refers to injecting 100 kW of power to the grid. The regulation signal refers to the amount of power being absorbed or injected relative to a base set point as described by signal 2. The amount of power being injected or absorbed will be as measured downstream of the flywheel energy storage system and upstream of the step up transformer. This regulation signal will be updated every 4 seconds.
   

2. Set Point (SP): This will be the nominal level of power being removed from the grid during the time on regulation. It will be a percentage of the full regulation signal and will be a variable during the demonstration phase of testing. This setting will remain constant over an agreed to time period – usually one to 24 hours. In addition to the set point and regulation signal the master controller will have input from the flywheel controller to know how much energy is in each flywheel. The system controller will then send a signal to the flywheel controllers, and load bank to control the power flow within and to and from the flywheel energy storage system based on these inputs.

The system will be installed and demonstrated at a location in San Ramon, California. It will be run for a period of six months to demonstrate its ability to interface with the ISO signals and grid. Data will be independently collected through funding provided by the U.S. DOE and used to estimate the system performance over time. 

The flywheel energy storage system will follow the regulation signal within a fraction of a percent. Unlike generation based frequency regulation, no fuel is consumed, and no emissions are generated. Analysis of presently used frequency regulation signals indicates that an energy storage module, which can store or deliver 1 MW for 15 minutes, would provide regulation services superior to services currently provided by generators. After development testing is completed the flywheel energy storage system and will be commissioned and put on automatic control.

What is Frequency Regulation?

The electric grid, because supply and demand of electricity is always changing requires continuous and instantaneous balancing of supply and demand of electricity – this continuous and instantaneous balancing of supply and demand of electricity is known as "frequency regulation."

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How we make and distribute electricity is changing! 

The electric power generation, transmission and distribution system (the electric "grid") is changing and evolving from the electric grid of the 19th and 20th centuries, which was inefficient, highly-polluting, very expensive and “dumb.”  

The "old" way of generating and distributing energy resembles this slide:

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Hubbert's Peak Oil Predictions Now Proving True?

Marion King Hubbert was a geologist and scientist who worked at Shell Oil company's research lab in Houston, Texas.  Hubbert made several important contributions to geology, geophysics and petroleum geology.  Hubbert is most recognized for the "Hubbert Curve" and " Hubbert Peak Theory" which is now referred to as " Peak Oil. 

Hubbert's life work determined that the world has a finite amount of petroleum that can be produced.  (Similarly, there is a finite amount of coal.) Many scientists and engineers believe we have reached Hubbert's "peak oil" limit.  Hubbert's espouses that when 50% of domestic crude oil production has been reached, that there will be such significant upward demand on prices of the limited supplies of oil production, that the U.S. economy will experience severe economic, social, and political turmoil.

Hubbert's Peak Oil predictions have proven to be true and this is validated as the U.S. in the early 1970's produced about 60% of its' oil demand and imported 40%.  That equation has flipped since then, because our domestic oil production has been on the decline since 1970, so now, due to our declining domestic oil production, we have to import 60% of our oil supplies, to meet our country's oil/energy demands.

The Next Oil Shock Could be the "mother" of All Oil Shocks

How severe our economic calamity and next "oil shock" will depend upon a number of factors, including when this occurs, as well as the following:

1.  the dependence of the individual country upon its own crude oil production to meet its energy needs and to subsidize consumer imports; 

2.  the rate of relative decline in crude oil production; 

3.  the degree of difficulty encountered in replacing missing energy inputs; 

4.  the degree to which our country had prepared in advance for this inevitable geological and economic calamity.

Examples of past "oil shocks" and the economic and political calamities that followed:

United States: Our peak crude oil production of domestic oil occurred in 1970; the first "oil shock" and oil crisis followed in 1973 with the Arab/OPEC Oil Embargo.

Iran: Their peak crude oil production occurred in 1974; They had their islamic revolution 1979 that overturned government and replaced it with radical islam.

Soviet Union: Their peak crude oil production was in 1989; what happened next? 
Their country disintegrated and the collapse of the Soviet Union followed in 1991. 

Indonesia: Their peak crude oil production was in 1991; their financial and government crisis followed in 1997.

Iraq: Iraq's crude oil production was in 1989; they then invaded Kuwait (for their oil) in 1991.

Using Mr. Hubbert's predictions, that beginning around 2000  we would see peak (global) oil production, then, if the country's not weaning themselves off of their oil addiction, and had not begun making the switch to renewable energy, that the negative economic and political calamities would soon follow, including ever-increasing prices of energy that is from fossil fuels. 

Now is the time to begin weaning ourselves off of fossil fuels and making the transition to and increasing the use of renewable energy. If you don't believe in climate change, or global warming, GREAT! Join us in the switch to renewable energy and a fossil-free economy!

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America's Clear and Present Danger

America Has INCREASED its' Dependence on Foreign 
Sources of Energy by 50% Since 1973.

America is even more "addicted" to foreign oil today, than we were in 1973 - 1974 when OPEC, Saudi Arabia and other suppliers from the Middle-East  stopped selling us their fossil fuels, and created a significant blow to our economy.

According to Monty Goodell, Founder and Chairman of the Renewable Energy Institute, "our increased dependence and reliance on foreign energy supplies represents a Clear and Present Danger to our national security, our economy, and the lives and livelihood of every American. Energy - including the energy we use from imported fossil fuels, is the very "lifeblood" of the American economy as it is for every industrialized country.  An economy dies without it's lifeblood of energy. This Clear and Present Danger we face is far more serious than the problems related to greenhouse gas emissions.  And while greenhouse gas emissions are very serious issue, in the long-term, pales in comparison to America's vital national security interests and America's economic stability in the short term.  For this reason alone, America needs to transition away from its addiction to foreign energy supplies. And America's abundant renewable energy resources such as the energy we receive from the sun, and renewable energy technologies such as concentrated solar power (CSP) plants - can supply 100% of America's power requirements with a concentrating solar power plant measuring 75 miles by 75 miles, located in the Southwest U.S.  By generating America's power from concentrating solar power plants, America resolves its' short-term Clear and Present Danger as it relates to importing its energy from foreign countries, and the long-term problems relating to greenhouse gas emissions."

Continuing, Mr. Goodell states that "too many Americans have forgotten what happened to us in 1973, when the Arabs and OPEC brought the United States economy to a screeching halt during the OPEC Oil Embargo.  This happened because they (mainly the country of Saudi Arabia) disagreed with our foreign policy and is the reason why they "turned off the tap" of our need for their oil supplies. When Saudi Arabia and OPEC stopped the vital flow of oil to our country in 1973, they caused an "oil shock" that severely and negatively impacted our economy. 

Mr. Goodell's question for us to ponder is, "do these countries who sell us 60% of our daily energy requirements, like us and our foreign policy, or might they leverage our addiction to their fossil fuels, and turn off the tap to make us adjust or revise our foreign policy??  Like any addict, America's foreign policy may be held hostage to its addiction, and in this case, our addiction to foreign oil, may over-ride our national interests."

Have American's forgotten the gas shortages and long lines at 
their gas stations to get gas during the Arab Oil Embargo of 1973? 

"Apparently so."  Mr. Goodell states that "in 1973, America was 'addicted' and 'over the barrel' of foreign oil to the amount of 40%.  Forty percent of our energy 'needs' in 1973 came from countries - many of which didn't like us then, and I'm afraid, many of them still don't.  The difference between 1973 and today - is that today we receive 50% MORE foreign oil now than we did in 1973.  And now we know about the problems relating to greenhouse gas emissions that we didn't know then.  America needs to change course, and change course now, in terms of its' energy supplies and how we keep America's economy strong, without the threat of being held hostage to a middle-east tyrant or regime, that could once again, turn on us, and turn off our supply of foreign oil." 

Remember ????

"Sadly," Monty Goodell continues, "most Americans have forgotten the long lines of people waiting in their cars - lined up and waiting for gasoline at their nearby gas station, with lines that were many blocks long.  And, after waiting 4-5 hours, many even waiting overnight in many places, to finally take their turn to fill up their car with gasoline, only to find that the gas station had run out of gas." 

"Let me Repeat.... That was 1973 when we imported 40% of our daily energy requirements in the form of crude oil from overseas, and from foreign countries - and many of these from countries that don't like us.

Today, over 35 years later, America has yet to learn the lesson.  We cannot continue our reliance on energy from foreign countries that supply us with 60% of the crude oil that our refineries use as a feedstock for producing gasoline and diesel fuel for our cars and trucks comes from overseas. 

America is "over the barrel" and it's not our barrel, but the barrels of oil that we are addicted by and owned by other countries.  Why have we not learned the lessons we needed to learn in 1973 when we were cut-off from the vital energy supplies we need? 

Countries like China, are growing rapidly, and have an insatiable need for crude oil. China, with their booming economy, is increasingly growing in its clout and control over international supplies of crude oil - whether they do this through their ability to buy as much oil as they need on a daily basis, or whether they simply but American drilling rigs, technology, and explore and produce oil and gas from their own fields. China, is buying large amounts of oil for their country, and causing upward pricing on declining supplies. What happens if Russia, with all of their oil and natural gas, along with China and Venezuela, with or without the help of OPEC, decided to NOT sell oil to us????

To be sure, greenhouse gas emissions are a problem, and to some, greenhouse gas emissions are also a Clear and Present Danger, but not to the extent that it presents an imminent Clear and Present Danger. 

America's reliance for 60% of our energy "needs" coming from foreign suppliers is un-acceptable.

The "driver" to get America to begin reducing and eliminating fossil fuel use should be our nation's national security and the welfare and safety of its citizens. And this can all begin with developing and investing in our own renewable energy resources and renewable energy technologies, let's start by putting solar on every rooftop that has a clear and unobstructed view of the Southern sky. See www.RooftopPV.com  or  www.DistributedPV.com  for more information.  Let's create incentives begin with adopting a national "Feed In Tariff" as Germany did in 1990. 

America, we simply do NOT have the luxury of time on our hands.  We need to end our dependence and reliance on foreign fossil fuels, especially from countries that don't like us! We need to rapidly begin expanding renewable energy resources and renewable energy technologies from our vast and abundant renewable energy resources, such as; solar, solar energy systems, solar cogeneration, solar trigeneration, "solar on every roof," waste to energy, waste to fuel, biomass gasification, B100 Biodiesel, Biomethane, Synthesis Gas, geothermal, E100 Ethanol (from sugar cane and NOT from corn), and wind, where it makes economic sense."

For more information, call/email:

American Energy Plan
www.AmericanEnergyPlan.com

No Foreign Oil
www.NoForeignOil.com

Wind Power Generation
www.WindPowerGeneration.com

Zero Emission Energy
www.ZeroEmissionEnergy.com

Zero Emission Power
www.ZeroEmissionPower.com

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We support the Renewable Energy Institute by donating a portion of our profits to the Renewable Energy Institute in their efforts to reduce fossil fuel use through renewable energy and their goals to end fossil fuel pollution by reducing/eliminating Carbon Emissions, Carbon Dioxide Emissions and Greenhouse Gas Emissions.

The Renewable Energy Institute is "Changing The Way The World Makes and Uses Energy by Providing Research & Development, Funding and Resources That Creates Sustainable Energy via 'Carbon Free Energy,' 'Clean Power Generation' and 'Pollution Free Power' Through Expanding the use of Renewable Energy Technologies."

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