1 

# Physical Characterization of Smart, Grid

Connected Home and Building Equipment and Appliances

Presentation at the April 30, 2014 Public Meeting on the Physical

Characterization of Smart and Grid

- Connected Commercial and Residential Buildings End

- Use Equipment and Appliances

Joseph Hagerman Building Technologies Office Office of Energy Efficiency and Renewable Energy, DOE2 

### • Enhance energy efficiency and productivity;

• Bring clean, reliable and affordable energy technologies to the marketplace; and

• Make a difference in the everyday lives of Americans by enhancing their energy choices and their quality of life. 

## DOE: EERE... 

# The Office of Energy Efficiency and Renewable Energy’s mission is to:

EERE spent $16.8 billion in ARRA funds to stimulate jobs and help create a clean

- energy economy in the US.3 3 

## Office of Energy Efficiency and Renewable Energy

Program Priorities

Biomass Investing over $1.4 billion to achieve cost competitiveness and commercialization of cellulosic and other advanced biomass feedstocks and biofuels through applied research, next generation pilot scale development, commercial scale biorefinery demonstrations and targeted infrastructure activities. Buildings Implementing a systems approach in deploying technologies for “ net

- zero ” energy buildings that produce as much energy as they consume. Builder ’ s Challenge, the Commercial Buildings Initiative, and accelerated building codes and appliance standards implement this new approach.

FEMP Doubled energy efficiency investment in Federal building through $1 billion of private

- party performance contracting. New ESPC contracts will support up $80 billion in energy savings at federal facilities and increase individual contract ceilings to $5 billion over the life of the contract. Geothermal Program renaissance emerged on foundation of Enhanced Geothermal Systems (EGS) that allows geothermal energy to be harnessed nationwide providing up to 10% of our Nation ’ s future electricity. Fuel Cells Added focus on near

- term stationary and early market applications to create economies of scale, accelerate learning

- by

- doing, and reduce cost of technology for transportation market. Industrial Concentrating on the Save Energy Now program, which through energy assessments has resulted in savings of over $100 million and 75 trillion Btus of natural gas.

Solar Achieve grid parity with PV and other solar technologies by 2015 through advanced R&D over the entire supply chain. Re

- invigorate Concentrated Solar Power program through launch of energy storage research and demonstration. Vehicles Focusing on fuel flexible Plug

- in Hybrid Electric Vehicles through greatly enhanced battery research activities and new utility partnerships. Weatherization/SEP Developed stronger ties with States and utilities by providing technical assistance and by developing “ best practices ” and model policies for faster and larger scale adoption of efficiency and renewable energy. Wind & Water Power Assessed feasibility for wind energy to provide 20% of our Nation ’ s electricity which led to new industry vision. Launched new program in wave, tidal and current energy.4 

## Office of Energy Efficiency and Renewable Energy

Program Priorities

Biomass Investing over $1.4 billion to achieve cost competitiveness and commercialization of cellulosic and other advanced biomass feedstocks and biofuels through applied research, next generation pilot scale development, commercial scale biorefinery demonstrations and targeted infrastructure activities. Buildings Implementing a systems approach in deploying technologies for “ net

- zero ” energy buildings that produce as much energy as they consume. Builder ’ s Challenge, the Commercial Buildings Initiative, and accelerated building codes and appliance standards implement this new approach.

FEMP Doubled energy efficiency investment in Federal building through $1 billion of private

- party performance contracting. New ESPC contracts will support up $80 billion in energy savings at federal facilities and increase individual contract ceilings to $5 billion over the life of the contract. Geothermal Program renaissance emerged on foundation of Enhanced Geothermal Systems (EGS) that allows geothermal energy to be harnessed nationwide providing up to 10% of our Nation ’ s future electricity. Fuel Cells Added focus on near

- term stationary and early market applications to create economies of scale, accelerate learning

- by

- doing, and reduce cost of technology for transportation market. Industrial Concentrating on the Save Energy Now program, which through energy assessments has resulted in savings of over $100 million and 75 trillion Btus of natural gas.

Solar Achieve grid parity with PV and other solar technologies by 2015 through advanced R&D over the entire supply chain. Re

- invigorate Concentrated Solar Power program through launch of energy storage research and demonstration. Vehicles Focusing on fuel flexible Plug

- in Hybrid Electric Vehicles through greatly enhanced battery research activities and new utility partnerships. Weatherization/SEP Developed stronger ties with States and utilities by providing technical assistance and by developing “ best practices ” and model policies for faster and larger scale adoption of efficiency and renewable energy. Wind & Water Power Assessed feasibility for wind energy to provide 20% of our Nation ’ s electricity which led to new industry vision. Launched new program in wave, tidal and current energy.5



## Building Technologies Office (BTO) Delivering Energy

- Efficient Solutions


## Emerging Technologies

High

- impact building technologies ~Five years to market

- ready 

## Residential Building Integration

Cost

‐ effective technologies, tools, solutions Peak energy performance in new & existing homes 

## Commercial Building Integration

Cost

‐ effective technologies, tools, solutions Peak energy performance in new & existing commercial buildings 

## Codes & Standards Building energy code language with adoption/compliance strategy National appliance & equipment standards6 

# BTO Funding by Program

(in millions)

$205 $178 $2127 • As EERE drives down the cost of emerging technologies, these technologies have started to proliferate into the energy system.

• The Grid Integration Initiative addresses challenges associated with the physical operation of the power system when these technologies are deployed at scale. 

# Grid Integration Initiative

Seamlessly integrating these technologies into the grid in a safe, reliable, and cost

- effective manner is critical to enable deployment at scale.8 

# EERE Grid Integration Activities

• Successful large

- scale deployment of EERE’s portfolio of clean energy technologies will require the development of new technologies and techniques to address grid integration barriers and opportunities associated.

• EERE technologies and solutions includes improved approaches to technologies and deployments of technologies . Examples include...

advanced power electronics (RD), “grid responsive” building technologies (INTEGRATION); vehicle

- to

- grid technologies (BOTH RD & INTEGRATION), etc...



### • Close engagement and collaboration with and among industry and other stakeholders are needed to develop and deploy the necessary standardized communication and control protocols to enable these devices and techniques to successfully interface and interact to enable grid operations while maintaining or improving grid reliability.9 

### • Engage with utilities, municipalities, and cooperatives for community scale solutions;

• Develop and advance common platforms, especially data formats and communication protocols, necessary for a modernized and more flexible distribution system; and

• Leverage substantial existing installations of photovoltaic systems, electric vehicles, building energy technologies, storage, and smart grid technologies.

• Encourage partnerships between industry, vendors, national laboratories, and other stakeholders; 

# How are we going to accomplish these goals...10 

## What we believe in... the Opportunity for Buildings

• Buildings have a large role in helping to enhance grid reliability and enabling the rapid integration of Renewable Energy and Storage. BUT

• Buildings today are limited by existing controls systems that can’t easily transact at the speed or scale that is required by the grid

– High cost to “get it right” with existing technology and economics

– Currently only implemented in large buildings

– Components are emerging with greater capabilities of control

• Building solutions must “think across the meter”

– Energy Efficiency is at the core, but there are additional value streams to/from third party entrepreneurs

– Better control of loads have other benefits

• Thinking Differently will unlock new value streams...11 

# What would success look like in the building domain?


# “Across the meter solution to enable transactions for commoditizing energy related services”

Every building device (whether generating or using electricity) should know how it is performing, how it could perform, and be capable of communicating that to the internal/external systems and the grid to unlock financial motivation for all participants.

• Add in technology with “smarts”/intelligence to protect owner/operator from negative consequences

• Must “know” actual and potential operational characteristics

• Must be able to match or settle transactions and “report back” to all parties12 Example Opportunity:

- Value of dynamic controls on rooftop air

conditioning units on a peak summer day13 ISO communicates that price is about to increase from $0.1/KWH to $1.0/KWH unless 100 MW is

removed from the system. Example Opportunity:

- Value of dynamic controls on rooftop air

conditioning units on a peak summer day14 I ’ m a hotel with a big conference underway. I need maximum cooling for my building. I ’ m looking to buy your additional load reduction to avoid price increases. Example Opportunity:

- Value of dynamic controls on rooftop air

conditioning units on a peak summer day15 I ’ m a big box store, with variable speed fans on my RTUs, and I can run those fans at somewhat lower speeds for 10 minutes and

“ sell ” you the load reduction. It will make no noticeable difference to my customers, and I can make some money (part of the price increase the other customer is avoiding). Example Opportunity:

- Value of dynamic controls on rooftop air

conditioning units on a peak summer day16 But to reach 100MW, negotiating and controlling across a few RTUs in a few buildings won’t realize an impact.

However, if all the RTUs in a service territory

-- across the national accounts AND the independents

-- could autonomously and automatically aggregate to deliver a solution for the utility, the system would be optimized and building owners/operators would realize energy savings.

If only the controllers could systematically communicate, transact, and settle amongst themselves. These solutions are beyond simple Demand Response because they inherently understand, value, and can act for the owner’s operational needs while simultaneously optimizing to help the grid. Example Opportunity:

- Value of dynamic controls on rooftop air

conditioning units on a peak summer day17 

### Scale is achievable with Energy Efficient and Network

- Ready Device

Energy efficient and smart equipment may have the following characteristics:

• Are energy efficient products (as covered by energy conservation standards).

• Have the capability to communicate with the grid or a building system in an interoperable manner.

• Have a standard, open protocol for communicating data/signals to and from the grid and/or the building system

• Have sensing and control capability to decrease or increase load in reaction to that data

• Allow for provision for simple configuration and implementation of consumer’s desired degree of flexibility in use of their appliances and equipment with respect to participating or acting upon system signals

• Able to respond to data/signals do not negatively impact device life

- time. ILLUSTRATIVE18 

## But, We Need to Define Metrics Together...

• We need metrics for device characteristics and value to users.

– As an example of user metrics targeted at utilities, we could propose a performance map with three grid services and their rated value to the utility:

• Ability to perform each service (pass/fail; based on exceeding a minimal threshold for available resource)

• Fraction of average power draw available as the resource for each enabled service (%)

• Fractional increase in energy consumption when providing each enabled service (%)



### – As an example of metrics for device characteristics, we could propose communication capability ratings:

• Bi

- directional communication capable (pass/fail)

• Communications protocol used (one from approved list)

• User interface (pass/fail )

• Speed of response to control request



## • A key outcome of this program will be definition of clear metrics that have meaning/value to all interested user groups

– It is critically important that we work together on these metrics and characterization procedures in an open process and framework ILLUSTRATIVE19 

## Vision & Objectives for DOE Involvement

• VISION:

– For Grid Solutions, DOE will provide clear and consistent definition for

e nergy efficient and smart/utility

- ready appliances, their characteristics/capabilities, and their potential value to consumers, utilities, and manufacturers.



### • Objectives:

– Work with manufacturers through an open/transparent process to develop ph ysical characterization procedures , leveraging existing efficiency testing protocols to the extent practical.

– Work with testing labs to develop the capability to conduct tests , l everaging the existing testing infrastructure to the extent practical.

– Work w ith market p a rticipants and s ta keholders to d efine and communicate the value o f “smartness ,” leveraging e xisting D OE progra ms.

– Work with utilities to encourage appropriate de ployment of energy efficient and networked appliances and equipment, leveraging existing utility efficiency programs after the benefits and values are clear.20 

# Planned Technical Meetings

Engaging manufacturers, utilities, and other stakeholders is critically important to the success of this effort.

• DOE will be developing these procedures and methods in an open and transparent process with public meetings and commenting periods. 

### DOE is planning a series of technical meetings to collect feedback and provide input on the process...

• Phase 1: verify understanding of current state, refine value proposition, solicit input for metrics development, review equipment prioritization for testing schedule.

• Phase 2: solicit comments on draft metrics and characterization procedures.

• Phase 3: roll out characterization procedures and initial results from equipment tests.21 

# EERE BTO’s BTG Website

EERE >>> Building Technologies Program >>> Emerging Technologies
http://www1.eere.energy.gov/buildings/technologies/buildings_grid_integration.html22 MEETING GOAL: Introduce and discuss physical characterization of equipment to deliver grid or consumer services from the building ’ s perspective.
Objective: Start the development of a consistent framework that can measure the devices for delivering these services.23 How do we define these devices that can deliver grid services while providing end

- user services?

What devices can deliver these services? 1 MEETING GOAL: Introduce and discuss physical characterization of equipment to deliver grid or consumer services from the building ’ s perspective.
Objective: Start the development of a consistent framework that can measure the devices for delivering these services.

Terminology and Definitions24 What services are needed from the grid?

And from end

- users?

How do we define these devices that can deliver grid services while providing end

- user services?

What devices can deliver these services? 2

1 MEETING GOAL: Introduce and discuss physical characterization of equipment to deliver grid or consumer services from the building ’ s perspective.
Objective: Start the development of a consistent framework that can measure the devices for delivering these services.

Terminology and Definitions End

- User and Grid Services25 What services are needed from the grid?

And from end

- users?

How do we define these devices that can deliver grid services while providing end

- user services?

What devices can deliver these services? What measureable characteristics of the devices reliably deliver these services?

How do we define a common framework to catalog the metrics for these characteristics? 2

1 3 MEETING GOAL: Introduce and discuss physical characterization of equipment to deliver grid or consumer services from the building ’ s perspective.
Objective: Start the development of a consistent framework that can measure the devices for delivering these services.

Terminology and Definitions End

- User and Grid Services

Physical Characterization Framework