Grid Connected Equipment 

How can we capture the new value streams enabled by connected products 

Roland Risser – Program Director 

Building Technologies Office 
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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 
 

 

 

 

 

 

 

 

Buildings and Grid Opportunities 

Challenges: 

•	 Proliferation of intermittent renewable energy impacts utility 

operations and business models 

•	 Advanced sensors and controls allow significantly enhanced 

equipment performance (Smart) – value proposition is limited 

Opportunity: 

•	 An interoperable transaction based platform can unlock enhanced 

value propositions for manufacturers, utilities and their customers 

(and mitigate the challenges above) 

–	 Leverages big data, new markets, and monetization 

–	 Full interoperability may require a significantly enhanced market, 

faster responses, open source software, common data 

structures, communication protocols, and a settlement platform. 

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Grid Integration Initiative - Wind Example 

•	 As EERE drives down the cost of emerging technologies, these technologies 

proliferate (e.g. Wind, PV). 

•	 The Grid Integration Initiative addresses challenges associated with the operation 

of the power system when these technologies are deployed at scale. 

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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What is the Opportunity for Buildings?
 

•	 Building systems can enhance grid reliability and enable the integration of

Renewable Energy and Storage.
 

HOWEVER
 

•	 Buildings are limited by existing controls systems that can’t easily transact 

at the speed or scale that is required by the grid 

–	 Proprietary systems do not easily interoperate with other systems 

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

–	 Currently only implemented in some large buildings 

–	 Technologies are evolving with greater capabilities of control 

•	 Building solutions must “think across the meter” 

–	 Energy Efficiency is at the core, but there are potentially additional

value streams to/from third party entrepreneurs 

–	 Better control of loads has other benefits 

•	 We want to unlock these 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 significant building related device will know how it is 

performing, how it could perform, and be capable of communicating 

to the internal/external systems (e.g. grid) to unlock financial 

opportunities for all participants. 

•	 Embed 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”. 

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i i 

U.S. DEPARTMENT OF 

ENERGY Energy Efficiency & 

Renewable Energy 

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 and financial savings. 

What if the controllers could systematically communicate, transact, and settle amongst 

themselves? These solutions are beyond simple Demand Response -they inherently understand, 

value, and can act for the owner’s or tenant’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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Can we estimate the Market for Grid Connected Equipment?
 

• Many variables are needed to determine the market: 

– Competition 

– Technology innovation and cost 

– Existing infrastructure and different utility/ISO needs 

– Future Policies 

– Value Proposition 

• McKinsey (2010) estimates annual market value at: 

– Customer Applications - $3-10 Billion 

– Advanced Metering - $7-13 Billion 

PNNL initial estimate = 

– Grid - $5-8 Billion 

$22B/year – Renewable energy/energy storage/PHEV - ? 

• What can DOE do to help all business models 

– Lower risks: greater transparency and certainty 

– Lower costs: technology innovation, standardization, interoperability 

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Networked Products Lead to Better Utilization of Energy at all Scales
 

•	 Equipment needs to be smart to participate in transactions within the
 

building, with other buildings, and with grid entities.
 

•	 Networked products at the whole building and the component level are
 

critical to optimize DER and the grid.
 

–	 Hypothesis: a model with multiple 

transactions within an energy 

ecosystem enhances the value 

proposition. 

Advanced equipment will be transaction capable, with auto M&V
 

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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 

•	 As an example of metrics for device characteristics, we could 

propose communication capabilities. 

•	 A key outcome will be a definition of clear metrics that have 

meaning/value to all interested user groups 

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DOE and Grid Integration - Objectives 

DOE is working to provide a 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 traditional test procedures 

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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EERE BTO’s Buildings-to-Grid Website 

EERE >>> Office of Building Technologies>>> Emerging Technologies 

http://www1.eere.energy.gov/buildings/technologies/buildings_grid_integration.html 

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THANK YOU!
 

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