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Business Models for Scaling Demand Flexibility Volume II – Customer relationship management strategies, challenges, and lessons learned from U.S. programs

Load growth at the grid edge is driving increased attention to the distribution system and its ability to enable customer technology adoption in an affordable and timely manner. Key industry stakeholders, including electric utilities and regulators, can benefit from strategies to manage and balance customer needs with infrastructure investments, such as demand flexibility. This report focuses on demand flexibility—the ability to reduce, shift, shed, generate, or modulate loads in response to building and grid needs—to reduce the need for costly grid upgrades by deferring investment needs and increase system reliability by shifting electricity usage during periods of high risk. Specifically, we focus on the emerging characteristics of business models for demand flexibility as a framework to understand how demand flexibility programs generate value. In this report, we focus on demand flexibility program customer relationship management strategies, which provide information on value creation and focus on ensuring customers can navigate programs smoothly. This report discusses the role of customer relationship management strategies in demand flexibility programs, characterizes customer relationship management strategies that can be considered during program design and implementation, identifies existing challenges to customer relationship management strategies, and describes lessons learned. This report is part of a series that includes reports on value propositions, stakeholder ecosystem management, and program life cycle.

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Clean Grid Vision: A U.S. Perspective - Chapter 4. Demand-Side Development

This chapter focuses on recent developments on the demand side of the electricity system in the United States and beyond. After decades of slow-moving change in power system technology, business models, regulatory structures, and even financing schemes, changes on the demand side are accelerating rapidly. These changes are also more tightly linking the supply side with the demand side. This chapter provides high-level summaries of traditional subjects like demand-side management, which includes energy efficiency and demand response, and then transition to a subject that has gathered increasing attention as the most dynamic change likely to impact power systems in the coming decades: beneficial electrification. In each case, we attempt to address the impacts on system flexibility to the degree possible. These demand-side subjects are widely considered essential elements of a clean grid strategy.

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Intelligent Energy Optimizer for Residential Buildings

Demand-side management in the buildings is essential for meeting grid flexibility needs in a highly renewable energy scenario. Appliance load monitoring helps decision making for demand-side management by providing the information on operation status/power consumption from different appliances in the buildings. Nonintrusive load monitoring (NILM) is an attractive option for appliance load monitoring using because it has lower cost for sensors and helps mitigate privacy concerns. In this study, the team used an event detection technique followed by two different methods for event classification. The results from k-means clustering showed that the events from a single appliance are often distributed in multiple clusters. Thus, the unsupervised method of NILM using k-means clustering used in this study was not very suitable for load disaggregation. The results from NILM showed that the F1 score for event classification was 0.77 for a heat pump water heater and very low for other appliances using the rule-based classification.

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Community-scale interaction of energy efficiency and demand flexibility in residential buildings

Demand-side management (DSM) strategies, including energy efficiency (EE) and demand flexibility (DF), contribute to cost-effective operation of the electricity grid. From a system-level perspective, such programs reduce costs, enhance reliability, and reduce network issues. Similarly, DSM programs help participating customers reduce utility bills while maintaining occupant comfort. Understanding the relationship between EE and DF is key to realizing the full potential of DSM programs. In this study, we modeled an all-electric residential community based on a 498-home community that is planned for construction in Fort Collins, Colorado in the United States. We used this community model to study the relationship between different EE measures, including building envelope upgrades and smart appliances, and DF enabled by a home energy management system (HEMS) responding to a time-varying tariff. Various EE levels in the homes – code-minimum, zero energy ready, and even higher levels of envelope efficiency – were simulated. DF is enabled by the HEMS, which coordinates behind-the-meter resources, including flexible building loads, PV, and home battery systems, to minimize utility bills while maintaining occupant comfort. When comparing to the code-minimum homes, EE upgrades alone reduce HVAC energy use during peak hours by up to 50% and the HVAC utility bill by up to $312/year. With the addition of HEMS, the average daily peak demand can be reduced by up to 0.58 MW or 1.2 kW/home in the higher envelope efficiency homes. The combination of EE upgrades, HEMS, and home battery systems is expected to save homeowners up to $590/year while increasing community load flexibility. However, HEMS and home battery systems are less effective in increasing the DF in the more efficient homes due to the lower load.

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SunDial – An Integrated SHINES System to Enable High-penetration Feeder-level PV

The Project Team of Fraunhofer USA, National Grid, and IPKeys developed and conducted a pilot deployment of the SunDial system, a virtual power plant platform that enables high-penetrations of solar PV to be integrated into the distribution grid. The pilot was conducted over a 15-month period from August 2018 through October 2019 on a National Grid distribution feeder in Shirley, MA. A vendor-agnostic control platform (the “Global Scheduler”) optimally shaped the net load for a virtual portfolio of non-co-located DERs based on user-defined policy objectives. The goal of the SunDial project was to simplify and reduce the risk associated with the deployment of solar in high-penetration environments by: (1) Developing an open-source, vendor-agnostic dispatch platform that can be readily adapted to optimize control of DERs over a variety of use cases; (2) Developing auto-calibrating load and solar prediction methodologies that can be readily implemented and scaled to new deployments; (3) Developing a methodology to use demand-side management with traditional electrochemical energy storage to provide “load shaping” services in high solar penetration environments; (4) Using grid-scale storage to minimize short-term intermittency association with PV production; and (5) Deploying on the National Grid distribution system to gain experience on the potential for (and limits of) integrated storage with demand-side management.

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Who Controls Energy in the Smart Home? A Multidisciplinary Taxonomy

Advances in technology have begun to open new opportunities for behavior-based and technical approaches to managing residential energy use and meet sustainability-related objectives. Visions of the future predict homes with smart technologies delivering enhanced comfort and cost savings to residents; utility-partners who can remotely optimize energy resources to meet grid needs; and occupants who play more active roles in the energy system supported by advanced information communication technologies. Each of these scenarios implies augmented control over home energy use, yet uncertainties remain regarding which ones will deliver the greatest grid benefits and services to customers in a given situation. These scenarios also raise broader questions regarding customer agency and the relationship between customers and third parties moving forward. While both the provision of information to spur behavior change and automated technologies theoretically enhance control over energy use in the built environment, these strategies are not often studied from an integrated perspective. Seeking to address this gap and develop a deeper understanding of the evolving paradigm of control over home energy use, this paper presents a taxonomy to evaluate perspectives from public policy (ex. demand-side management), technological innovation (automated controls), and user-agency (ex. the role of behavior change) on approaches to managing home energy use. We draw on theoretical and empirical evidence from across disciplines to detail the dimensions and implications of deploying programs that incorporate various levels of control and anticipate such a taxonomy will help holistically map out and evaluate tradeoffs between different approaches to demand-side management moving forward.

McIlvennie, Claire↗

Heuristic Dispatch Based on Price Signals for Behind-the-Meter PV-Battery Systems in the System Advisor Model

The economic potential of a behind-the-meter (BTM) PV-battery system depends greatly on how the battery is dispatched. Different utility rates, system sizes, generation and load profiles can all require different dispatch strategies. This paper presents price signals dispatch, a new algorithm for automated economic dispatch of BTM PV-battery systems, which utilizes 24-hour PV and load forecasts, degradation data, and utility rates. The algorithm is integrated with the System Advisor Model (SAM) tool and is tested with a nonlinear generic electrochemical battery model. Price signals dispatch outperforms SAM's existing algorithms in cases requiring a balance between demand charge management and energy arbitrage, and in cases where battery degradation imposes a significant cost.

batteries↗

Managing changes in peak demand from building and transportation electrification with energy efficiency [Slides]

The Department of Energy funded Berkeley Lab to provide technical assistance to two municipal utilities on how energy efficiency and demand flexibility can mitigate the peak demand impacts of building and transportation electrification. Berkeley Lab worked with these utilities, Sacramento Municipal Utility District (SMUD) and Fort Collins Utilities, to identify research questions that supported their planning needs. For both utilities, Berkeley Lab developed scenario-based load forecasts that considered baseline and high-efficiency building electrification. For SMUD, the forecast also explored the sensitivity of peak demand to extreme weather (a winter cold snap) at the system-level. For Fort Collins Utilities, the forecast addressed the impacts of low, medium, and high levels of building and transportation technology adoption on select distribution feeders. Berkeley Lab is also developing a guidance document for utilities that will draw on lessons learned from the technical assistance and provide a framework for conducting similar analyses.

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Demand Capacity Balancing at Vertiports for Initial Strategic Conflict Management of Urban Air Mobility Operations

Demand Capacity Balancing (DCB) can be applied in strategic conflict management for safe Urban Air Mobility (UAM) operations. Even when the operational tempo is low, traffic demand can locally exceed the capacity at airspace resources like vertiports. This paper proposes a DCB algorithm to manage the UAM traffic demand strategically, given the capacity at vertiports. The DCB algorithm is evaluated with traffic scenarios at Dallas/Fort Worth urban area in terms of various metrics such as demand distribution changes, pre-departure delay, and the number of simultaneous operations in the air. With the same experiment setup, more extended studies are also conducted to investigate how the UAM flight scheduling based on the DCB algorithm is affected by various conditions that can occur in a practical UAM environment, including vertiport capacity changes, a slot size parameter in capacity constraint, differences in operational policy between operators like lead time for flight plan submission and cruise flight speed, and uncertainties in actual departure and arrival times.

Urban Air Mobility↗

Predicting Air Traffic Management Initiatives Using Supervised Learning

Terminal Traffic Management Initiatives (TMIs) such as Ground Stops (GS) and Ground Delay Programs (GDP) are implemented to manage excess demand or lowered capacity at an airport. Air Traffic Flow Management (TFM) specialists identify situations such as aviation constraints, current and forecasted weather conditions, airport demand and capacity, and initiate TMIs for safe and orderly movement of air traffic. In this paper, we outline supervised learning techniques that can be used to predict and recommend TMIs at an airport based on current weather and airport conditions. Our research involves building classic Machine Learning (ML) models such as Logistic Regression, K-Nearest Neighbor, Random Forest and XGBoost, as well as Long short-term memory (LSTM) networks. We trained the models on 3-year historical data (weather, airport demand, capacity and TMIs) from Newark (EWR) airport which was selected based on its higher TMI implementation rates and varied weather conditions. Although Random Forest and XGBoost algorithms are able to predict if a TMI is needed or not, they have difficulty in predicting specific program type. For this purpose, we found that LSTM time-series forecasting models performed better as they also learn from past TMI program type sequences. This study also lays down the foundation for advanced modeling techniques and architectures to predict TMIs in advance for future periods. The ability to predict TMIs in advance will be highly beneficial to the traffic controllers and managers as this will help them to prepare for and manage TMIs more efficiently.

Manoj Agrawal↗

Data-driven key performance indicators and datasets for building energy flexibility: A review and perspectives

Energy flexibility, through short-term demand-side management (DSM) and energy storage technologies, is now seen as a major key to balancing the fluctuating supply in different energy grids with the energy demand of buildings. This is especially important when considering the intermittent nature of ever-growing renewable energy production, as well as the increasing dynamics of electricity demand in buildings. This paper provides a holistic review of (1) data-driven energy flexibility key performance indicators (KPIs) for buildings in the operational phase and (2) open datasets that can be used for testing energy flexibility KPIs. The review identifies a total of 48 data-driven energy flexibility KPIs from 87 recent and relevant publications. These KPIs were categorized and analyzed according to their type, complexity, scope, key stakeholders, data requirement, baseline requirement, resolution, and popularity. Moreover, 330 building datasets were collected and evaluated. Of those, 16 were deemed adequate to feature building performing demand response or building-to-grid (B2G) services. The DSM strategy, building scope, grid type, control strategy, needed data features, and usability of these selected 16 datasets were analyzed. This review reveals future opportunities to address limitations in the existing literature: (1) developing new data-driven methodologies to specifically evaluate different energy flexibility strategies and B2G services of existing buildings; (2) developing baseline-free KPIs that could be calculated from easily accessible building sensors and meter data; (3) devoting non-engineering efforts to promote building energy flexibility, standardizing data-driven energy flexibility quantification and verification processes; and (4) curating and analyzing datasets with proper description for energy flexibility assessm.

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Synthetic residential load models for smart city energy management simulations

The ability to control tens of thousands of residential electricity customers in a coordinated manner has the potential to enact system-wide electric load changes, such as reduce congestion and peak demand, among other benefits. To quantify the potential benefits of demand-side management and other power system simulation studies (e.g. home energy management, large-scale residential demand response), synthetic load datasets that accurately characterize the system load are required. This study designs a combined top-down and bottom-up approach for modelling individual residential customers and their individual electric assets, each possessing their own characteristics, using time-varying queueing models. The aggregation of all customer loads created by the queueing models represents a known city-sized load curve to be used in simulation studies. The three presented residential queueing load models use only publicly available data. An open-source Python tool to allow researchers to generate residential load data for their studies is also provided. The simulation results presented consider the ComEd region (utility company from Chicago, IL) and demonstrate the characteristics of the three proposed residential queueing load models, the impact of the choice of model parameters, and scalability performance of the Python tool.

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Modeling and Detection of Future Cyber-Enabled DSM Data Attacks

Demand-Side Management (DSM) is an essential tool to ensure power system reliability and stability. In future smart grids, certain portions of a customer’s load usage could be under the automatic control of a cyber-enabled DSM program, which selectively schedules loads as a function of electricity prices to improve power balance and grid stability. In this scenario, the security of DSM cyberinfrastructure will be critical as advanced metering infrastructure and communication systems are susceptible to cyber-attacks. Such attacks, in the form of false data injections, can manipulate customer load profiles and cause metering chaos and energy losses in the grid. The feedback mechanism between load management on the consumer side and dynamic price schemes employed by independent system operators can further exacerbate attacks. To study how this feedback mechanism may worsen attacks in future cyber-enabled DSM programs, we propose a novel mathematical framework for (i) modeling the nonlinear relationship between load management and real-time pricing, (ii) simulating residential load data and prices, (iii) creating cyber-attacks, and (iv) detecting said attacks. In this framework, we first develop time-series forecasts to model load demand and use them as inputs to an elasticity model for the price-demand relationship in the DSM loop. This work then investigates the behavior of such a feedback loop under intentional cyber-attacks. We simulate and examine load-price data under different DSM-participation levels with three types of random additive attacks: ramp, sudden, and point attacks. We conduct two investigations for the detection of DSM attacks. The first studies a supervised learning approach, with various classification models, and the second studies the performance of parametric and nonparametric change point detectors. Results conclude that higher amounts of DSM participation can exacerbate ramp and sudden attacks leading to better detection of such attacks, especially with supervised learning classifiers. We also find that nonparametric detection outperforms parametric for smaller user pools, and random point attacks are the hardest to detect with any method.

97 MATHEMATICS AND COMPUTING↗

Of impacts, agents, and functions: An interdisciplinary meta-review of smart home energy management systems research

Smart home energy management technologies (SHEMS) have long been viewed as a promising opportunity to manage the way households use energy. Research on this topic has emerged across a variety of disciplines, focusing on different pieces of the SHEMS puzzle without offering a holistic vision of how these technologies and their users will influence home energy use moving forward. This paper presents the results of a systematic, interdisciplinary meta-review of SHEMS literature, assessing the extent to which it discusses the role of various SHEMS components in driving energy benefits. Results reveal a bias towards technical perspectives and controls approaches that seek to drive energy impacts such as load management and energy savings through SHEMS without user or third-party participation. Not only are techno-centric approaches more common, there is also a lack of integration of these approaches with user-centric, information-based solutions for driving energy impacts. Finally, these results suggest future work should investigate more holistic solutions for optimal impacts on household energy use. We hope these results will provoke a broader discussion about how to advance research on SHEMS to capitalize on their potential contributions to demand-side management initiatives moving forward.

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Quantifying the effect of multiple load flexibility strategies on commercial building electricity demand and services via surrogate modeling

The expansion of commercial building demand response as a demand-side management resource for the electric grid necessitates new decision support resources for customers seeking to assess the benefit–risk tradeoffs of possible strategies for energy flexible building operations. To address this need, we, in this study, develop surrogate models that predict the impacts of several load flexibility strategies on commercial building electricity demand and indoor temperature, focusing on offices and retail buildings at multiple scales. The surrogate models are fit to a synthetic database generated via whole building simulations, which establish the relationships between the key operational features of a given strategy and potential changes in building demand and temperature across a variety of contexts. The surrogate models are translated to a Bayesian framework to allow straightforward communication of uncertainty and parameter updating given new evidence. We find strong predictive performance across the suite of models, underscoring the usefulness of the approach in guiding decisions about implementing load flexibility strategies under a particular set of operational and environmental conditions.

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A Demand Bidding Model for Multi-Product Industrial Plants

The growing contribution of renewable energy sources has increased volatility and uncertainty in electricity markets, challenging traditional grid operation paradigms. Demand bidding (DB), a market participation model where (large) electricity users communicate their willingness to pay for electricity to the grid operator, was shown in previous work to enhance grid stability and lower generation cost. We present a DB model for multi-product industrial plants, based on an extended optimal power flow problem where the plant dynamics are represented using autoregressive with extra inputs (ARX) models. We compare DB to price-based demand-side management, showing that, under certain assumptions, the two approaches are equivalent, while DB provides more transparency and predictability to the grid operator. A case study based on an industrial air separation unit is discussed.

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