Terminology and Definitions

1
• DOE envisions a future where Smart and Grid-Connected Devices

provide value through engagement with End-User and Grid 

Services. Quantifying device Actions through Physical 

Characterization is a key step toward this future.

• These terms need to be defined in order clarify this vision and to 

provide common ground for discussion.

• How can these terms be better defined?

• What other terms are important to define?

Terminology and Definitions

2 Terminology and Definitions
• “Devices” include all appliances, equipment, or systems located 

in residential, commercial, or industrial settings. “Devices” are 

equivalent to “Building End-Use Equipment and Appliances”. 

• The list of devices is very long. Some examples include:

- Refrigerator - Roof top unit (RTU) - Computer/printer

- Pool pump - Inverter - Induction furnace

- Television - Vehicle charger - Storage

Devices

3 Terminology and Definitions
• “Smart Devices” modify their state by employing decision logic

that is informed by:

– Customer requirements 

– External input signals

– Self-awareness 

– Interactions with external devices or systems 

• Example of a smart refrigerator and RTU: 

– Incoming signal requests 500W load increase from 5:00-5:30am 

– Refrigerator is scheduled for a 30 min defrost cycle at 4:00am 

– Refrigerator/HVAC/EMS negotiate the following agreement:

• Refrigerator delays defrost cycle until 4:45-5:15am

• RTU pre-heats building from 5:15-5:30am

Smart Device

4 Terminology and Definitions
• “Connected Devices” receive and act on signals generated by 

utilities, third parties, energy management systems, or other 

devices. 

• Example of connected devices: 

– HVAC senses clogged filter and transmits maintenance request to 3rd

party. Refrigerator and clothes dryer detect HVAC signal and inform 

owner that the water filter and exhaust duct are due for service within 

the next two weeks.

Connected Device

5 Terminology and Definitions
Services

• “Services” are resources or functions provided for the benefit 

of interested parties.

• “Grid Services” 

– Energy related products and services purchased, or incentivized, by the 

power grid to improve grid operations.

– Examples: Peak shifting, ancillary functions, renewable capacity firming 

• “End-User Services”

– Energy related products and services purchased by consumers to 

optimize their overall energy costs, comfort, or convenience.

– Examples: Maintenance, diagnostics, automated commissioning

6 Terminology and Definitions
• “Device Actions” include the modification of operating state, 

generation of information, or interaction with other devices for 

the benefit of customers, utilities, or third parties.

• Example device actions include:

– Modifying electrical load

– Scheduling future events

– Reporting maintenance issues

– Identifying cost saving opportunities 

Device Actions

7 Terminology and Definitions
Physical Characterization

• “Physical Characterization” involves quantifying the operating 

conditions, actions, or impacts that are possible for a device.

• Physical characterization is not energy efficiency testing (e.g. 

appliance standards testing). 

• Examples of physical characterization include changes in...

- Energy consumption - Frequency

- Power - Temperature

- Time - Service life

8 Terminology and Definitions
Public Comments

DOE envisions a future where Smart and Grid-Connected

Devices provide value through engagement with End-User and 

Grid Services. Quantifying device Actions through Physical 

Characterization is a key step toward this future.

• How can these terms be better defined?

• What other terms are important to define?

9 Terminology and Definitions
End-User and Grid Services

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• Physical characterization of smart and connected devices is 

needed to access valuable services. 

• Example service categories include:

– Grid services 

– End-User services

– Other?

• What other service categories are important to consider?

End-User and Grid Services

11 End-User and Grid Services
Grid Services

• Grid Services: Energy or energy-related products and services 

purchased, or incentivized, by the power grid to improve grid 

operations, reduce cost, or improve reliability. 

• Example grid services include:

- Capacity - Ancillary

- Cold start - Direct load control

- Peak shifting - Scheduling imbalance

- Congestion - Renewable capacity firming

- Load following - etc...

• What other grid-related services are on the horizon?

• Does a clean-energy economy require new services?

12 End-User and Grid Services
• End-User Services: Energy and energy-related products and 

services purchased by customer or building owner to reduce 

energy consumption or cost, improve comfort, or enhance 

operations. 

• Example end-user services include:

– Operation and maintenance 

– Device diagnostics 

– Automated commissioning 

– Purchase energy from third-party distributed energy provider

• What other end-user services are on the horizon?

End-User Services

13 End-User and Grid Services
Public Comments

We recognize that identification of services that can be delivered by 

smart and connected devices is challenging. We are seeking input on 

this topic.

• What other service categories are important to consider (e.g. grid, 

end-user, other)?

• What other grid-related and end-user services are on the horizon?

14 End-User and Grid Services
Physical Characterization 

Framework

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• Physical Characterization of smart and connected devices is 

needed to access valuable services. 

• DOE is seeking to develop a Framework for characterizing smart 

and connected devices. 

• We envision that this framework would... 

– Define a systematic approach to characterizing devices

– Describe protocols for characterizing device actions

• What should a physical characterization framework contain?

• What device actions should be characterized?

Physical Characterization Framework 

16 Physical Characterization Framework
What is Physical Characterization?

17 Physical Characterization Framework

• Physical characterization is not...

– Annual energy efficiency testing

– Seasonally adjusted rating 

– Label development program

– Test procedure development

– ENERGY STAR

• Physical characterization is... 

– The evaluation of device 

actions and performance

– Can it be externally controlled? 

If so, how?

– To what extent? How long?

– What are consumer impacts?

Illustrative

Characterization is the first step toward:

• Mapping physical characterization to services that can be delivered

• Identifying value to consumer and operational benefits

• Evaluating national impact of smart and connected devices 
Framework Content

• A physical characterization framework would provide a systematic 

approach for evaluating the performance of smart and connected 

devices. 

• Example content for a framework may include: 

– Conceptual model

– Reference implementations

– Device test protocols

– Metrics for comparison

– Other?

• What content should the framework contain?

18 Physical Characterization Framework
Device Actions

• A key component of the framework will likely include which, and 

how, device actions are characterized.

• Example device actions to be characterized may include: 

– Magnitude of load modification (thermostat adjustment, delay tasks)

– Time dependent behavior (in-rush current, lock-outs, delays) 

– Impacts on consumption (consumption variation)

– Information generated (measured confirmation, forecast)

– Operational limits (duration, frequency, deficit)

• What device actions should be characterized?

19 Physical Characterization Framework
Public Comments

We recognize that development of a physical characterization 

framework is challenging and are seeking input on this topic.

• What should a physical characterization framework contain? 

• What device actions should be characterized?

20 Physical Characterization Framework
Device Testing at ESIF

• The DOE, PNNL and NREL are launching research at ESIF to 

characterize the performance of smart and connected devices. 

• Initial testing will be used to inform development, and provide 

validation, of the physical characterization framework.

• NREL facilities leverage existing infrastructure and experience.

– Device testing capabilities include appliances, HVAC, energy management 

systems, generation, and energy storage.

– Testing can occur at the device or integrated system levels. 

21 Physical Characterization Framework
Value, Benefits & Metrics

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• DOE envisions that considerable Value & Benefits can be derived 

from deployment of smart and connected devices at scale.

• Recent analyses suggest that significant value exists for services 

enabled by smart and connected devices.

– McKinsey (2010) ≈ $30B/yr (grid and customer applications)

– PNNL (2013) ≈ $22B/yr (grid services only)

• What studies are there that estimate the value and benefits of 

smart and connected devices? From the grid perspective? From 

the consumer perspective?

Value, Benefits & Metrics

23 Value, Benefits & Metrics
• Metrics are required to quantify the national value and benefits 

of smart and connected devices. 

• Example national benefit metrics may include:

– Total value ($)

– Societal benefit (CO2)

– Consumer acceptance (# Devices)

• What metrics should be considered at the national level?

National Benefits

24 Value, Benefits & Metrics
• Device level metrics are needed to quantify benefits at three 

primary levels:

– Consumer, Utility, and National levels

• Example device level metrics include:

– Fraction or multiple of baseline consumption (e.g. load)

– Fraction or multiple of baseline service (e.g. temperature)

– Time, Binary Y/N, # of attributes, information

• Physical characterization of individual devices is required in order 

to project the performance of a population of devices. 

• What metrics should be considered at the device level?

Device Metrics

25 Value, Benefits & Metrics
Public Comments

We understand that quantifying the value and benefits of smart 

and connected devices is challenging. We are seeking input on this 

topic. 

• What are the national level values and benefits? 

• What studies are there that estimate the value and benefits of 

smart and connected devices? From the grid-perspective? From 

the consumer perspective? 

• What metrics should be considered? At the national level? At 

the device level?

26 Value, Benefits & Metrics