Flexible energy: the value of demand response
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Transcript of Flexible energy: the value of demand response
© CGI Group Inc. CONFIDENTIAL
Flexible energy –
the value of demand response
Joris Knigge, senior Business Consultant
Jaarcongres Delta Cities, Delft, 12 November
Content
• Developments & Challenges
• Paradigm shift in the energy value chain
• Customer participation & Demand response
• Jouw Energie Moment
• Results
• Lessons learned & discussion
2
Developments
3
2020
Reliability
Competitiveness Sustainability
1990
2010
2000
Customer
Governance
Shareholder
• Electrification of energy demand,
energy savings
• Increase of intermittent distributed
renewable energy recourses
• Changing customer demands
Challenges
4
• Incorporation distributed renewable energy
into existing infrastructure, maintaining
affordability and reliability
• Facilitate new entrants and customer
demands
• Manage uncertainties and avoid investment
stranded assets
Total investment needs in the
electricity and gas sector
2010-20: over 1 trillion EUR
Power generation ~
500 bn
Distribution
~ 400 bn
Transmission
~ 200 bn
RES
~ 310 – 370 bn
Source: EC communication on Energy Infrastructure priorities for
2020 and beyond, 17.11.2011 based on PRIMES calculations
Transmission and
distribution ~ 600 bn
Paradigm Shift in the energy value chain
5
Generation Transport Distribution
Supply Consumption
Customer
participation
EV Supply & Charging
Generation
Transport
Wind
Energy generation PV Energy generation
Energy Storage
Distribution
Energy system is based on principle production
follows demand
Flexibiliteit is nodig!
Technische oplossingen (opslag)
Klantzijde particpatie
6
The quest for flexibility
• Technical solutions to increase flexibility of the system
• Involve demand-side of the system to increase flexibility of the system
7
Involvement customer in energy chain can serve
several business & societal goals
• Increase market power of customer
• Economic development in energy sector: new entrants, increase
innovation, market liquidity
• Incorporation of intermittent renewable energy recourses requires
flexibility – customer can provide flexibility in energy use
8
Customer participation & demand response
• Customer involvement in energy is very low (energy = commodity)
• Changing consumption pattern only occurs when changing
determinants (values, attitudes, norms, morals, perceived control)
• Develop service which focusses on customers needs !
9
From delivering kWh towards supplying energy
service
• Service development providing customers:
• Increased commitment
• Understandable insight in own consumption and production
• Real time feed back on behavioural effects
• Provide customer control and choice
10
Smart Meter Real time production and consumption
data is taken from the smart meter 11
Smart appliances In home display and management system
switches appliances on preferred times and
moments: according to tariffs or solar panel
production
Electric Vehicle Electric vehicles can be
charged by own solar
production
IT platform on district level CeMS
An IT platform supports monitoring
and data communication from and to
individual households, sensors
substation capacity and interfaces
with weather forecasts, wholesale
markets and back-offices energy
retailers Solar panels Solar panels produce
electricity for households
and feed into the network
12
13
Results
14
• Peak demand is reduced by ~40%, compared with average EU household profile
• 91% of particpating households want more “control” on their energy consumption
• 95% of participating households is convinced service “jouw energie moment” results
in value for them
• ~50% of participating households say they use their smart appliance more flexible –
according to preferences
Next Steps??
15
CGI provided solution (CeMS) together with
knowledge & expertise • CGI designed, developed, realised and operates the
IT data communication platform Central Energy Management System
• CGI delivered knowledge & expertise on workings of the market processes within the electricity sector
• CGI was responsible for system integration between various partners and suppliers to the consortium
• In home energy management systems
• Smart meter data systems
• Weather forecast services (Meteo Consult)
• Day Ahead electricity market (APX-ENDEX)
• Sensor- and monitoring on sub station of local distribution grid
• Billing & invoicing systems at back-offices of two competing energy retailers
16
Lessons Learned
17
• Development of products requires system integration
– Important: protocols, open standards • Involve customer at first phases of service product
development
Discussion
18