# 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

Terminology and Definitions 2

### • “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 3 rd 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

10

### • 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

End - User and Grid Services 11

# 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? End - User and Grid Services 12

### • 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

End - User and Grid Services 13

# 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

15

### • 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

Physical Characterization Framework 16

# What is Physical Characterization?

Physical Characterization Framework 17 

### • 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? Physical Characterization Framework 18

# 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?
Physical Characterization Framework 19

# 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.

Physical Characterization Framework 21

# Value, Benefits & Metrics

22

### • 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

Value, Benefits & Metrics 23

### • 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 (CO 2 )

– Consumer acceptance (# Devices)



### • What metrics should be considered at the national level? 

# National Benefits

Value, Benefits & Metrics 24

### • 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

Value, Benefits & Metrics 25

# 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?
Value, Benefits & Metrics 26