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Physical Characterization of Smart, GridConnected 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, DOE
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• 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.
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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.
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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.
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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 standards
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BTO Funding by Program 

(in millions)

$205

$178

$212
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• 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.
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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. 
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• 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...
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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...
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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 parties
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Example Opportunity:

- Value of dynamic controls on rooftop airconditioning units on a peak summer day 
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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 airconditioning units on a peak summer day 
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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 airconditioning units on a peak summer day 
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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 airconditioning units on a peak summer day 
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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 airconditioning units on a peak summer day 
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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.

ILLUSTRATIVE
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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

ILLUSTRATIVE
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Vision & Objectives for DOE Involvement

• VISION:

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

energy 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

physical characterization procedures, leveraging existing efficiency testing

protocols to the extent practical.

– Work with testing labs to develop the capability to conduct tests, leveraging

the existing testing infrastructure to the extent practical.

– Work with market participants and stakeholders to define and 

communicate the value of “smartness,” leveraging existing DOE programs.

– Work with utilities to encourage appropriate deployment of energy efficient

and networked appliances and equipment, leveraging existing utility efficiency

programs after the benefits and values are clear.
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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.
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EERE BTO’s BTG Website

EERE >>> Building Technologies Program >>> Emerging Technologies

http://www1.eere.energy.gov/buildings/technologies/buildings_grid_integration.html
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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.
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How do we define these devices that can 

deliver grid services while providing end-user 

services? 

What devices can deliver these services?

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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
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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?

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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 Services
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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?

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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