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Click To Edit Master Title Style Better Buildings Alliance Renewables Integration Technical Research Team Team Call - Utility Rate Structures & Opportunities to Incentivize Load Flexibility April 28, 2020 1:00 2:00 PM EST

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Page 1: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Click To Edit Master Title Style

Better Buildings Alliance

Renewables Integration

Technical Research Team

Team Call -

Utility Rate Structures &

Opportunities to

Incentivize Load

Flexibility

April 28, 2020

1:00 – 2:00 PM EST

Page 2: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Welcome!

2

https://betterbuildingsinitiative.energy.gov/alliance/te

chnology-solution/renewables-integration

Page 3: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Renewables Integration – Team Goals

▪ Strategic use of renewables

▪ Building load flexibility

▪ Grid coordination

▪ Provide resources, information, and guidance on these topics to

building owners and managers

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Page 4: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Call Agenda

▪ Introduction & Quick Announcements

▪ Rois Langner, NREL

▪ Technical Presentations:

▪ Chris Perry, ACEEE

▪ Candice Tsay, ConEd

▪ Discussion and Q&A

▪ Rois Langner, NREL

▪ Theo Kassuga, Guidehouse

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Page 5: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Renewables Integration – Team Players

Technical Team Lead:

Rois Langner

Commercial Buildings Research Group,

NREL

E: [email protected]

P: 303-204-7026

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Page 6: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Renewables Integration – Team Players

Theo Kassuga

Managing Consultant, Energy

Guidehouse6

Bill Goetzler

Managing Director, Energy

Guidehouse

Technical Team Support:

Page 8: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Announcements – Recent Publications

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DOE GEB-site:

https://www.energy.gov/eere/buildings/grid-

interactive-efficient-buildings

Page 9: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Announcements – Upcoming Team Calls

9

Better Buildings Alliance Renewables Integration Team

Team Calls

The BBA EMIS & Renewables Integration Team are jointly

hosting a 2-part webinar series on behind the meter

distributed energy resources:

• Part 1: May 6th, 2-3pm EST - The Value of Distributed

Energy Resources to Owners: A Current Market

Landscape Register here

• Part 2: End of June - Methods and Best Practices for

Integrating DERs into Commercial Buildings

Have questions? Email us!

Rois Langner:

[email protected]

Theo Kassuga:

[email protected]

Page 10: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Announcements – Team Calls

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Better Buildings Alliance Renewables Integration Team

Team Calls

• New topics every couple months

• Did you miss the last one?

• Find it on the Better Buildings Solution Center:

• April 9th: Building Load Flexibility and Grid Coordination

• June 25th: EV’s – Buildings as the New Gas Station

• Nov 5th: Bridging the Gap Between Efficiency & Demand

Response

Have questions? Email us!

Rois Langner:

[email protected]

Theo Kassuga:

[email protected]

Page 11: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Today’s Presenters

Chris Perry, PE

Research Manager, Buildings Program

ACEEE11

Candice Tsay, PhD

Sr. Planning Analyst

Con Edison

Page 12: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Technical Presentation:

Chris Perry

ACEEE

Page 13: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Grid-Interactive Efficient BuildingsUtility Program Trends and Impacts on Facility Managers

Better Buildings Alliance Renewables Integration Technology Research Team Call

April 28, 2020

Chris Perry, PE

[email protected]

Research Manager, Buildings Program

Page 14: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Agenda

Background

• ACEEE work

• Changes to the grid

• Impact on facility managers

Grid-interactive Efficient Buildings (GEBs)

• Defining GEBs

• Benefits of GEBs

• Utility GEB programs

Barriers, Recommendations, & Conclusions

• Barriers

• Recommendations

• Conclusions14

Page 15: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Background

15

Page 16: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Since 2017, ACEEE has released reports on smart & connected buildings and energy storage.

Smart Buildings

• Smart Buildings: Using Smart Technologies to Save Energy in Existing Buildings (2017)

• Smart Buildings: A Deeper Dive into Market Segments (2017)

• Emerging Opportunities: Achieving Deeper Energy Savings through Integrated Building Systems (2019)

Energy Storage

• Emerging Opportunities: Energy Storage (2019)

Grid-Interactive Efficient Buildings

• State of the Market: Grid-interactive Efficient Building Programs (2019)

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Page 17: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Historically, ACEEE’s research focused on kWh, however we are increasingly interested in kW.

Page 18: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Historically, ACEEE’s research focused on kWh, however we are increasingly interested in kW.

Page 19: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Rapid changes in technology adoption (e.g., solar and electric vehicles) and policies (e.g., electrification) can cause grid strain.

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www.greentechmedia.com/articles/read/renewables-integration-in-the-midwest-is-a-whole-other-animal

insideenergy.org/2014/10/02/ie-questions-why-is-california-trying-to-behead-the-duck/

https://www.greentechmedia.com/articles/read/hawaiis-solar-grid-landscape-and-the-nessie-curve

California ‘Duck’ Curve Midwest ‘Gator’ Curve Hawaii ‘Nessy’ Curve

Page 20: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Utilities are looking for ways to help manage electric grid loads…and buildings are a key resource.

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www.greentechmedia.com/articles/read/summer-turned-200-buildings-into-grid-heroes

www.cnn.com/2019/08/07/business/alabama-power-smart-neighborhood/index.html

www.seia.org/research-resources/how-california-new-york-are-building-grids-encourage-growth-distributed-energy

Page 21: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Facility managers should be interested in these grid-interactive efficient building utility (GEB) programs trends.

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New incentive program offerings may help you save money on advanced energy-saving equipment for your buildingIncentives

New electricity rate structures may incentivize GEB technologies by valuing energy efficiency + demand flexibility Rates

Training your staff to use grid-interactive technologies now provides an increasingly valuable skillset in the marketplaceSkills

Your site could be used for a pilot or demonstration project and earn recognitionRecognition

Page 22: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Grid-interactive Efficient Buildings (GEBs)

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Page 23: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

23https://www.energy.gov/sites/prod/files/2019/04/f61/bto-geb_overview-4.15.19.pdf

GEB utility programs accurately value and incentivize energy efficiency and load flexibility benefits of buildings and their efficient and connected technologies.

Two important definitions…

Grid-interactive efficient buildings (GEBs) are highly-efficient buildings that can communicate with and serve as a resource for the grid (e.g., shift or shed loads).

Page 24: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Key GEB technologies can save energy and/or interact with the grid.

24aceee.org/white-paper/gebs-103019

Page 25: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

GEBs benefit cities, utilities, and building owners.

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Reduce emissions Reduce grid strain Reduce bill costs

Page 26: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Smart, connected technologies in GEBs also add value to a building through nonenergy benefits.

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Health & safety

Patient satisfaction

Security

Resilience

Worker productivity

Asset value

Security

Guest experience

Comfort

Security

HospitalOffice

Hotel

Page 27: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Utility programs are starting to pave the way to GEBs by valuing both efficiency and demand response.

27aceee.org/white-paper/gebs-103019

Page 28: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Barriers, Recommendations, & Conclusions

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Page 29: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Top GEB barriers for facility managers include:

WorkforceInteroperability Cybersecurity

Page 30: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Utilities also face their own barriers:

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Organizational Silos Technology Expertise

Policy Mandates Metrics & Valuation

Page 31: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Conclusion for utilities: taking steps to create holistic GEB programs now can help mitigate future grid strain.

• Some initial recommendations:

• Include smart, grid-connected technologies in long-term plans

• Break down silos and integrate EE and DR departments

• Expand IT department to prepare for new data opportunities

• Begin investigating your value of grid interactivity

ACEEE hosts a GEB working group for utilities and program administrators – contact Chris if interested! [email protected]

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Page 32: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Conclusion for facility managers: preparing for GEBs now will give you and your facilities an advantage.

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New incentive program offerings may help you save money on advanced energy-saving equipment for your buildingIncentives

New electricity rate structures may incentivize GEB technologies by valuing energy efficiency + demand flexibility Rates

Training your staff to use grid-interactive technologies now provides an increasingly valuable skillset in the marketplaceSkills

Your site could be used for a pilot or demonstration project and earn recognitionRecognition

Page 34: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Technical Presentation:

Candice Tsay

Con Edison

Page 35: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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SMART HOME RATE DEMONSTRATION PROJECTRate approaches for flexible load response

Better Buildings Alliance Renewables Integration Technology Team CallApril 28, 2020

Candice TsaySr. Planning Analyst, Con Edison

Page 36: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Innovative

Pricing Pilot

• Test customer acceptance

of innovative rate designs

• Determine customer

behavioral changes

• Evaluate customer benefits

Test

Analyze

Learn

Improve

Smart

Home Rate

• Test rate for homes with

controllable load

• Allows customers to

respond to price signals

using home automation

technology

Value of DER

• Develop successor to net

energy metering (“NEM”)

• NEM successor rates may

form the basis for future

mass market default rates

Mass market rate design efforts at Con Edison

Page 37: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Load flexibility for transformational change

New York Climate Leadership

and Community Protection Act

• 70% of electrical supply from

renewables by 2030 / 100%

by 2040

• Net zero greenhouse gas

emissions by 2050

• Electrification of commercial

and residential heating, and

transportation sectors

To help reach these ambitious goals, we’ll need widespread behavioral change

and rapid technology adoption, done at scale.

Direct Load

Control

Demand

Response

RatesTime-varying, dynamic rates can provide

customers with direct price signals to

encourage load flexibility

Utility approaches

In the Smart Home Rate Demo, two key concepts tested together:

(1) Design a rate that accurately reflects cost drivers

(2) Provide in-home technology that enables price responsiveness

Page 38: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Rate pilot to evaluate impacts and customer perception/behavior

Rate A

750

participants

Rate B

750

participants

Matched

control

Demand optimization of Central

A/C loads

Rate A

100 participants

Demand optimization

with solar-coupled

storage

Matched

control

Central A/C Track Storage plus Solar Track

Objectives

• Measure load

response

• Measure bill

impacts

• Gauge customer

acceptance

➢ Program impacted and currently delayed by COVID-19 pandemic. Certain details subject to change.

Page 39: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Rate design approach

1 Unbundle cost components and reflect system cost drivers

2 Consider how design elements can be made user-friendly for

customers

Page 40: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Rate design approach

1 Unbundle cost components and reflect system cost drivers

Total Bill

Supply Delivery

Energy Capacity Transmission Distribution Customer

(simplified)

(Con Edison’s infrastructure assets

and service delivery)

Infrastructure costs that provide capacity to meet peak demand:

Rate component types

Demand charge

Critical peak event charge

Page 41: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Rate design approach

More details in “Rider AB” in Con Edison’s electric tariff

Energy (per kWh)

Generation capacity charges

T&D delivery charges

(per kW)

Rate A

Rate B

Day-Ahead Hourly

NYISO Locational

Marginal Price

(LMP)

Day-Ahead Hourly

NYISO LMP

Daily Demand Charge

(on max. 60-min interval

between 12-8pm)

Monthly Subscription Charge

(on demand level selected by

customer)

Critical peak G, T, and D

event charges

(on max. 60-min interval

during event)

Critical peak G, T, and D

event overage charges

(on incremental demand

above subscription level

during event)

Critical peak event

charges designed to

encourage demand

reduction at peak times

Daily demand and

subscription charges give a

wide range of flexibility for

customers and technologies

to operate under

2 Consider how design elements can be made user-friendly for customers

While rates are complex,

customers will be provided

with home automation

technology to respond to

prices

Page 42: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

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Summary

1 Innovative rates can drive load flexibility for transformational

change.

2Unbundled cost components provide accurate price signals,

while design elements can be made user-friendly for

customers.

3We can derive much needed data on customer responses

from rate pilots, and apply insights to scale up or modify

approaches.

Page 43: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Comments? Questions?

Please share your thoughts!

Page 44: Renewables Integration · Grid-Interactive Efficient Buildings Utility Program Trends and Impacts on Facility Managers Better Buildings Alliance Renewables Integration Technology

Thank you!

Email:

[email protected]

[email protected]

to be added to our listserv.

Stay tuned for announcements on

upcoming BBA Renewables

Integration Team calls!

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