Demand Response in Complex BuildingsThe Missing Piece

April 7, 2011

George Plattenburg, PE

Sr. Vice President, Sales & Marketing

Advanced Load Control Alliance Meeting – San Antonio, Texas

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Topics

• What Are Complex Buildings• Why Complex Buildings Don’t Participate in DR• Need for Education• Getting “Inside the Skin”TM of a Building• Creating the DR Recipe• Leveraging Existing Assets and Knowledge • Manual and Automatic DR (not versus)• Supplemental Measures• Integrated System for DR in Complex Buildings• Following the DR Recipe• Why Complex Building DR is So Important

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Who Participates in Demand Response Today?

• Industrial Customers– Curtailable Load– High Correlation between Electricity and COGS– Back-up Generators

• Residential Customers– Air Conditioning Duty Cycling– Time of Use Rates

• National Accounts– Retailers– Grocery and Drug Stores– EMS standards and NOC

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What is Missing?

Complex Buildings: Biggest missing piece of your demand response resource

What Are Complex Buildings?

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Large Office Buildings

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Hotels and Resorts

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Hospitals and Healthcare Facilities

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Servidyne and Complex Buildings

• Founded in 1925• Energy Engineering expertise for 30+ years• NASDAQ listed since 1983• Sole Focus – Optimizing operational efficiency of

existing buildings• Audits, RCx, Demand Side Projects, Benchmarking,

Sustainability• We understand complex buildings from the standpoint of

owners and operators• Added Fifth Fuel ManagementTM demand responses

services in 2009

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Why Complex Buildings Don’t Participate in DR

• Education• Staffing• Focus on occupants – tenants, guests, patients• Building engineers don’t want to be fired• Minimum program requirements• Not enough incentive

Need for Education

• Owners and operators don’t really understand demand response

• Lack of program flexibility can force a quick “no”– Length of an event– Requirement to deliver

contracted capacity (no opt in and out)

– Complex tariffs or penalties

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Important Lesson: Utility representatives and marketing results are the most effective for one reason – Trust

Need for Education – An Example

Regency Hill Country Resort

Regency San Antonio

Inside a Complex Building

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Inside the SkinTM Demand Response

• Demand Response Assets exist inside a building’s skin– Chilled water production and pumping– Air distribution efficiency– Space temperature conditions– Space lighting conditions– Decorative water features– Kitchen and ice-making equipment– Laundry equipment– Makeup and exhaust air delivery– People moving

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Inside the SkinTM Demand Response

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Creating the DR Recipe

• Interest created through marketing and dialogue• Begin with phone call to qualify opportunity

– Can customer meet minimum requirements?

• Conduct a demand response audit– Identify every system that truly contributes to peak

– Identify all available control systems

– Perform in conjunction with building personnel

– Engineering estimates and actual measurements

– Quantify value of each Demand Response Measure

– Ensure compliant meters on site

• Customer enthusiasm increases with knowledge and participation

RECIPE

Marketing & D

Phone call

DR Audit

Knowledge &

particip

• Granular detail on each demand response measure• Identify measures that require manual action• Stagger events to accommodate personnel and avoid

post-event “snap back”• Provide written plan to engineering staff• Communicate plan in person and/or on the phone• Send the recipe to building staff as a reminder before

each and every called event• Critical to conduct an on site test

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Writing the DR Recipe

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Demand Response Recipe

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Leveraging Existing Assets & Knowledge

• The best DR resources for utilities are reliable, persistent, and cost effective

• The best participation tools for complex buildings are also reliable, persistent, and cost effective

• Most complex buildings have critical success pieces in place already– EMS – Lighting Controls– Staff Knowledge

• Leverage these existing assets to minimizes costs and optimize results

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EMS

EMS

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Lighting Controls

Lighting Controls

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Leveraging these Assets

• Load shed strategy programs exist– Space temperatures– Pressures and flows– Lighting levels– On and off

• Many in use for demand charge limiting• Others can be enabled & used for DR participation• On site staff and their vendors can modify and add

programming as necessary• These demand response assets become “automated”

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Manual AND Automatic

• Some measures are easily automated cost effectively• Automated measures respond to a utility’s dispatch signal• Manual measures require human interaction • Some measures must be manual because:

– Economic constraints– Technology limitations– Size of load shed involved– Need to maintain on site decision making

Of these, the last obstacle is the most critical one for complex buildings

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Why Is Manual Necessary?

• Landlord and tenant relationship• Special events (weddings, meetings)• Life safety

Not all measures lend themselves to being fully automated at all times

Local building engineers will need to maintain “digital” or “analog” control over some measures on some days – these are supplemental measures

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Supplemental Measures May Include

• Lighting control schemes • Temperature control resets• Plug loads and “soft stuff”• Tenant participation

These measures may be fully available most of the time but not all

Can the utility live with this diversification in DR load forecasting?

Utility offerings should reflect your answer to avoid mutual disappointment & to maximize complex building DR participation

Integrating Manual and Automatic Measures

• Need a single dispatch system• Use email with tracking and stamping for manual• Need an open protocol gateway controller for automatic• Customer feedback on manual measures ideal• Need utility and customer dashboards

Integrated DR System for Complex Buildings

Utility Dashboard

JACE

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Servidyne’s Learnings to Date

• In Complex Buildings– On average, 60 to 80% of available Demand Response

Assets lend themselves to cost effective automation

• Approximately 10 to 15% of peak demand can effectively be reduced through Inside-the-SkinTM demand response

• Clarity, dialogue, and program simplicity may drive participation as much as incentive

• Timely post-event feedback enhances success

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Importance of Following the DR recipe

• Communication is key to success at all phases– Share the demand response audit– Send out the DR recipe initiation steps pre-event – Dispatch automated measures during an event– Send out the DR “recipe” restoration sequences post-event– Call the customer asap if results don’t match expectations

• You can’t over-communicate

Many customers with existing demand response service providers have come to Servidyne looking for help due to lack of event communication

• Complex buildings have smart owners and operators – they are influential consensus builders

• Successful customers will add additional DR measures in future years (a new game)

• Successful customers will share stories with other prospects • The occupants of complex buildings are natural marketers• The relationship between a utility and its customer is strengthened

when the customer is an ongoing part of the solution through DR• Demand Response success can get customers excited about the

possibilities of the coming Smart Grid• …Whatever that is….

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Importance of Complex Building DR Successes

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About Servidyne and Fifth Fuel Management

www.servidyne.com

www.fifthfuelmanagement.com

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To Learn More About EE and DR

www.servidyne.com/blog