Scenarios for Consuming Standardized Automated Demand Response Signals

Scenarios for Consuming Standardized Automated Demand Response Signals Ed Koch Akuacom 25 Bellam Blvd., Suite 215 San Rafael, CA 94903 ed@akuacom.com Mary Ann Piette Lawrence Berkeley National Laboratory Building 90-3111 Berkeley CA 94720 mapiette@lbl.gov Keywords: Demand response, automation, commercial buildings, architecture Abstract Automated Demand Response (DR) programs require that Utility/ISO's deliver DR signals to participants via a machine to machine communications channel. Typically these DR signals constitute business logic information (e.g. prices and reliability/shed levels) as opposed to commands to control specific loads in the facility. At some point in the chain from the Utility/ISO to the loads in a facility, the business level information sent by the Utility/ISO must be processed and used to execute a DR strategy for the facility. This paper explores the various scenarios and types of participants that may utilize DR signals from the Utility/ISO. Specifically it explores scenarios ranging from single end user facility, to third party facility managers and DR Aggregators. In each of these scenarios it is pointed out where the DR signal sent from the Utility/ISO is processed and turned into the specific load control commands that are part of a DR strategy for a facility. The information in these signals is discussed. In some cases the DR strategy will be completely embedded in the facility while in others it may be centralized at a third party (e.g. Aggregator) and part of an aggregated set of facilities. This paper also discusses the pros and cons of the various scenarios and discusses how the Utility/ISO can use an open standardized method (e.g. Open Automated Demand Response Communication Standards) for delivering DR signals that will promote interoperability and insure that the widest range of end user facilities can participate in DR programs regardless of which scenario they belong to. 1. AUTOMATED DEMAND RESPONSE SIGNALS Demand Response (DR) programs can take many forms. DR programs differ from normal rates and tariffs in that they are designed to allow for the Utility/ISO to take specific actions to influence the load profiles of facilities that participate in the DR programs at peak consumption times on the grid. These peak consumption periods may cause critical grid reliability issues which must be addressed, but they may also trigger economic factors wherein the price of electricity reaches critical levels which may be ameliorated by reducing the overall consumption on the grid during those periods. These critical periods in which the Utility/ISO needs to influence the load profile of a Facility are referred to as DR Events. Much of DR today is managed as a set of programs in which the participants enter into some contractual agreement about how they will get compensated by participating in the DR Events. As the real time pricing markets evolve the notion of being compensated during a specific event period may get replaced with a purely price responsive mechanism that does not require that the facility be explicitly notified that a DR Event per se is occurring. The manner in which the Utility/ISO influences the load profile of a facility is to send out a so called DR signal which is specific to the DR Event. The nature of the information in the DR signal varies widely depending upon the DR program. In some cases the DR signals contains business level information such as the following: Prices Shed levels Grid reliability related information