Imagination at work
Energy Management Systems: Industry Perspectives on Challenges and Opportunities
Sasank Goli
IRED 2014 Kyoto, Japan
20 November 2014 1
© 2014 General Electric Company. All Rights Reserved.
Outline:
I. Introduction II. Technology-Standards-Policy III. Conclusions
2
© 2014 General Electric Company. All Rights Reserved.
Purpose – to allow consumers to better manage energy consumption (DSM) thereby leading to sustained cost savings with better:
• Analytics - Information brings improved understanding of how energy is used and how it impacts the organization’s costs.
• Decision making tools
• Control over devices - Improved utilization of assets
Planning considerations:
• Technology
• Standards
• Policy
End-user energy management systems
3
Te
chn
olo
gy
End-user Energy Management
Systems
© 2014 General Electric Company. All Rights Reserved.
C-I-R Sector Relative Proportions
4
Industry (%) Comm. (%) Res. (%) Other (%) Total TWh
USA 24 35 36 5 3886
China 68 6 15 11 4693
Singapore 34 38 17 11 41
Japan 33 36 29 2 860
India 46 8 21 25 1051
Thailand 42 36 21 1 132
Philippines 35 29 34 2 54
Malaysia 44 34 21 1 94
Indonesia 37 24 39 0 129
© 2014 General Electric Company. All Rights Reserved.
High Emergency lighting,
product cooling Business dependent
HVAC, Lighting, defrost
circuits, some food prep equipment
Time-sensitive process
equipment Business Impact to Load Reduction
Time insensitive process
equipment
HVAC, Lighting, defrost
circuits, cold storage
Forklift battery chargers,
“normal” office temp. controls
HVAC, Lighting, defrost
circuits, cold storage
Participation depends on
regulation Low Rare due to relative costs
Commercial Load
Examples Industrial Load
Examples
End User Load Considerations
Classification of available loads for end user management
Rare
Rare
HVAC, Lighting,
Appliances
HVAC, Lighting,
Appliances
Solar, Storage
Residential Load
Examples
5
© 2014 General Electric Company. All Rights Reserved.
Market drivers include: • Energy cost saving potential • Improved device functionality • More service providers • Desire to be green • Incentives and mandates. Market inhibitors include: • Insufficient consumer motivation • Capital costs • Complexity of use • Confusing choice of products • Lack of standards • Low utility support
Sector overall is expected to grow significantly in coming decade
Market Potential Overview for EM
6
© 2014 General Electric Company. All Rights Reserved.
Other
Devices
IHD
Home and Bui ldings Energy Solutions
Automation
Server DRMS
Smart Meter
Internet
Home Energy
Manager
Non-Meter Solution
Other Devices PCT
server
server
7
© 2014 General Electric Company. All Rights Reserved.
Energy Management
and Control System
Loads
Storage
Generation
Industrial Facility Boundary
Secure External Communications
Intra-Facility Communications
Electrical Flows
Smart Grid Extending into Industrial Facility E
ne
rgy
Se
rvic
es
Inte
rfa
ce
E
SI
8
© 2014 General Electric Company. All Rights Reserved.
NIST Smart Grid Conceptual Model
Customer
9
Standards Operational
Technical
© 2014 General Electric Company. All Rights Reserved.
Structured Approach Why Energy Management Matters Ad hoc approach to Energy Management
Δ in
En
erg
y U
se/E
xp
en
se
Co
mp
are
d t
o B
ase
lin
e
Cost high = audit
0 3 Years
-20%
-25%
-15%
-10%
-5%
0
+5%
Costs
Investment
Waste cutting; Some investment
The cycle repeats
Under control
Source: UNIDO 2010
Cost high again: Where’s that last audit
© 2014 General Electric Company. All Rights Reserved.
Structured Approach Why Energy Management Matters Benefits of a Structured Approach
Δ in
En
erg
y U
se/E
xp
en
se
Co
mp
are
d t
o B
ase
lin
e
Senior management commit to program
0 3 Years
-20%
-25%
-15%
-10%
-5%
0
+5%
Costs
Investment
Initial savings sustained
Housekeeping first – then investment
Becomes company culture
Source: UNIDO 2010
Business As Usual:
Programs funded
only when energy
use/costs increase.
11
© 2014 General Electric Company. All Rights Reserved.
Energy Management Planning Benefits for Organizations
Organizations that establish an energy management plan gain a number of benefits:
• Actively manage energy use and reduce costs
• Reduce emissions without negative effect on operations
• Document savings for internal and external use
(e.g. emission credits, GHG reporting), consistent
with their business needs
• Continue to improve energy performance over
time
12
© 2014 General Electric Company. All Rights Reserved.
ISO 50001 – Key Concepts
• Shifts the energy efficiency focus from individual projects to a
systematic, data-driven management approach
• Requires top management to be engaged on an ongoing basis.
• Provides a context for informed decisions concerning proposed energy efficiency projects, including new technologies.
• Increases reliability of outcomes through emphasis on business
processes rather than reliance on a few individuals
• Involves energy users and decision makers, not just facility
personnel and physical systems, to sustain the change.
systems processes facilities equipment personnel
Scope of energy management
13
© 2014 General Electric Company. All Rights Reserved.
Policies that promote energy management
A non-exhaustive list includes:
• Energy Efficiency Standards
• For consumer products e.g. EnergyStar, MEPS
• Building codes e.g. California Title 24
• Smart meter installation targets
• Renewable Portfolio Standards (RPS)
• DR incentives
• Outreach and Education
• Facility and Building Energy Management Systems
• Business processes. E.g. ISO 50001 Energy Management Std
• Technology. E.g. Dashboards; Big Data Analytics
14
© 2014 General Electric Company. All Rights Reserved.
Example – Utility and Developer
MV
cub
icle
Util
ity m
eter
Real Estate Developer managed
(sub) Distribution and Retail billing Utility managed Generation, Transmission and Distribution
Advanced Metering Infrastructure and
Microgrid Controller Distributed Storage
Rooftop Solar
Plug-in Electric Vehicles
4.4 kV
15
© 2014 General Electric Company. All Rights Reserved.
GE App
Key Takeaway from research and pilots
16
Thank You! [email protected]
17
© 2014 General Electric Company. All Rights Reserved.
Key insights from implementations • Focus, focus, focus on interoperability • Realize that compliance to standards does not in itself guarantee
interoperability • Share information among stakeholders to ensure success • Build a collaborative team with technical and project management
expertise
18
© 2014 General Electric Company. All Rights Reserved.
Possible further steps for Japan • Japan has achieved high growth in DSM in a
short period helped by: o Subsidies, grants, roadmaps
o Electricity market reform
• DSM market is becoming self sustainable • Further steps that can be taken: o Decoupling
– Utility’s profits should not depend on the electricity sold – Regulatory framework that encourages investment in EE
o Market mechanism for trading demand – DSM is Japan is currently limited to bilateral contracts – PJM interconnect in US meets 6-10% of peak demand
through DR
• Long term energy mix – Will determine the extent or DSM and/or storage required
19
© 2014 General Electric Company. All Rights Reserved.
Cr t ca Load Critical Load
Availability of loads to participate in end user demand management
On-Site Generation
Ancillary Load
Flexible Load
Base Load – Not Available
Total Reduction Hours Low High
Ava
ilab
le k
W
Load Participation Opportunities
20
© 2014 General Electric Company. All Rights Reserved.
Demand-Side Resources
On-site generation and storage
Smart charging for electric vehicles
Automated management of energy use:
• Automated demand response
• Voluntary load control
• Dynamic pricing
Industrial plants
Advanced Metering Infrastructure (AMI) 21
© 2014 General Electric Company. All Rights Reserved.
Energy Efficiency vs Demand Response
Electricity Value Chain Portfolio of actions that industrial facilities can undertake in terms of
Type ↔ Duration ↔ Rapidity of response
Auto-DR only
22
© 2014 General Electric Company. All Rights Reserved.
Policy and standards are closely linked
Competing standards can inhibit markets Leading to calls for harmonization
By default…
•Disparate standards bodies give rise
to competing standards
•Firms face higher transaction costs,
diseconomies of scale
By design…
•Technical standards as industrial
policy…non-tariff trade barriers
•“Prescriptive” standards development
undermines “market-based” approach
•Country-to-country MOUs
Joint R&D
Standards working groups
•Foreign participation in
national/regional standards bodies
•Government support for development of international standards
• Internationally-recognized conformance
testing procedures
•Funding for standards development in
emerging markets
•Other…
23