Sri Adichunchanagiri Shikshana Trust (R)

SJB Institute of Technology

(Affiliated to Visvesvaraya Technological University, Belagavi& Approved by AICTE, New Delhi.)

Department of Electrical & Electronics Engineering

Smart Grid(18EE744)
Module 3:
Dynamic Energy Systems Concept

Faculty Details:
Dwarakanath S K
Assistant Professor
Module-3

Dynamic Energy Systems Concept:

Smart energy efficient end use devices,

smart distributed energy resources,
advanced whole building control systems,
integrated communications architecture,

energy management,
role of technology in demand response,
current limitations to dynamic energy management,
distributed energy resources, overview of a dynamic energy management,

key characteristics of smart devices,

key characteristics of advanced whole building control systems,
key characteristics of dynamic energy management system.

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 Questions – Module 3

1. Explain the components of dynamic energy management(DEM)

2. Explain the role of technology in demand response
3. List the current limitations and scope for dynamic energy management(DEM) -2
4. Explain the key features of DEM
5. Define DEM? Explain with an example the Integrated communication architecture
6. Explain overview of DEM
7. Explain the key characteristics of a) smart devices b)advanced whole building architecture c)DEM system
8. Explain the following components used: a) smart efficient end used devices b) adv whole building control arch
9. Explain the terms a)Distributed energy resources b) Energy management

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The Smart Grid— Enabling Demand Response—

The Dynamic Energy Systems Concept Dynamic Energy systems provide the infrastructure to use the smart grid to enable
demand response through dynamic energy management systems.

Dynamic energy management is an innovative approach to managing load at the demand-side.

It incorporates the conventional energy use management principles represented in demand-side management, demand
response, and distributed energy resource programs and merges them in an integrated framework that simultaneously
addresses permanent energy savings, permanent demand reductions, and temporary peak load reductions.

This is accomplished through an integrated system comprised of smart end-use devices and distributed energy resources
with highly advanced controls and communications capabilities that enable dynamic management of the system as a whole.

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This simultaneous implementation of measures sets this approach apart from conventional energy use management and
eliminates any inherent inefficiencies that may otherwise arise from a piecemeal deployment strategy.

Q. Explain the components of dynamic energy management(DEM)

It offers a “no-regrets” alternative to program implementers. Dynamic energy management consists of four main
components:

1. Smart energy efficient end-use devices

2. Smart distributed energy resources

3. Advanced whole-building control systems

4. Integrated communications architecture

These components act as building blocks of the dynamic energy management concept. The components build upon each
other and interact with one another to contribute to an infrastructure that is dynamic, fully integrated, highly energy-efficient,
automated and capable of learning.
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SMART ENERGY EFFICIENT END-USE DEVICES

Q. Explain the following components used: a) smart efficient end used devices b) adv whole building control arch

• Appliances, lighting, space conditioning, and industrial process equipment with the highest energy efficiencies technically
and economically feasible.

• Thermal energy storage systems that allow for load shaping.

• Intelligent end-use devices equipped with embedded features allowing for two-way communications and automated
control.

• Devices that represent an evolution from static devices to dynamic devices with advancements in distributed intelligence;
one example is a high-efficiency, Internet protocol (IP) addressable appliance that can be controlled by external signals
from the utility, end-user or other authorized entity.

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SMART DISTRIBUTED ENERGY RESOURCES

Q. Explain the terms a)Distributed energy resources b) Energy management

• On-site generation devices such as photovoltaics, diesel engines, micro-turbines and fuel cells that provide power alone or
in conjunction with the grid.

• On-site electric energy storage devices such as batteries and fly wheels devices that are dynamically controlled to supply
baseload, peak saving, temporary demand reductions or power quality.

• Devices that are dynamically controlled such that excess power is sold back to the grid.

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ADVANCED WHOLE-BUILDING CONTROL SYSTEMS

Q. Explain the following components used: a) smart efficient end used devices b) adv whole building control arch

• Control systems that optimize the performance of end-use devices and distributed energy resources based on operational
requirements, user preferences and external signals from the utility, end user or other authorized entity.

• Controls that ensure end-use devices only operate as needed; examples include automatic dimming of lights when
daylighting conditions allow or reducing outdoor ventilation during periods of low occupancy.

• Controls that allow for two-way communications; for example, they can send data (such as carbon dioxide concentration
in a particular room) to an external source and they can accept commands from an external source (such as management of
space conditioning system operation based on forecasted outside air temperature).

• Local, individual controls that are mutually compatible with a whole-building control system; for example, security,
lighting, space conditioning, appliances, distributed energy resources, etc., can all be controlled by a central unit.

• Controls that have the ability to learn from past experience and apply that knowledge to future events.
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INTEGRATED COMMUNICATIONS ARCHITECTURE

• Allow automated control of end-use devices and distributed energy resources in response to various signals such as
pricing or emergency demand reduction signals from the utility; day-ahead weather forecasts; other external alerts (e.g., a
signal could be sent to shut down the outdoor ventilation systems in the building in the event of a chemical attack in the
area); and end-user signals (e.g., a facility manager could shut down the building systems from an off-site location during
an unscheduled building closure.

• Allow the end-use devices, distributed energy resources and/or control systems to send operational data to external
parties (e.g., advanced meters that communicate directly with utilities).

• Communications systems that have an open architecture to enable interoperability and communications among devices.

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Figure 7-1 shows an example of the dynamic energy management infrastructure applied to a generic building. In this
example, there are two-way communications via the Internet as well as via the power line. The building is equipped with
smart energy-efficient end-use devices, an energy management system (EMS), automated controls with data management
capabilities, and distributed energy resources such as solar photovoltaics, wind turbines and other on-site generation and
storage systems.

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ENERGY MANAGEMENT TODAY

Q. Explain the terms Energy management

Current practice in the implementation phase of energy use management consists of several elements used alone or in
combination to effect a change in energy use characteristics at a given site.

In general, the elements can be divided into seven main categories:

1. Energy audits and/or reviews of historical energy use characteristics to identify problem areas.

2. Improvements to the operation and maintenance of existing end use devices and processes to reduce energy use,
demand and/or materials. This includes housekeeping and maintenance measures, heat recovery, energy cascading,
material recovery/waste reduction, etc.

3. Replacement or retrofit of existing end-use devices or processes with energy-efficient devices to reduce energy use,
demand and/or materials as well as to improve productivity. This may also include fuel switching (e.g., from thermal
processes to electro technologies).

4. Load shaping strategies such as thermal energy storage which shifts load to off-peak periods

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5. Installation of controls to turn end-use devices “on/off” or “up/ down” as required or desired to reduce energy use
and/or demand. This includes local controls and building energy management systems.

6. Demand response strategies to reduce peak demand temporarily.

7. Use of distributed energy resources to replace or reduce dependence on electricity from the grid

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Demand-side Management

“Demand-side management is the planning, implementation and monitoring of those utility activities designed to influence
customer use of electricity in ways that will produce desired changes in the utility’s load shape, i.e., changes in the time
pattern and magnitude of a utility’s load. Utility programs falling under the umbrella of demand-side management include
load management, new uses, strategic conservation, electrification, customer generation and adjustments in market share.”

In general, demand-side management embraces the following critical aspects of energy planning:

• Demand-side management will influence customer use. Any program intended to influence the customer’s use of energy
is considered demand-side management.

• Demand-side management must achieve selected objectives. To constitute a desired load shape change, the program must
further the achievement of selected objectives (i.e., it must result in reductions in average rates, improvements in customer
satisfaction, achievement of reliability targets, etc.).

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• Demand-side management will be evaluated against non-demand-side management alternatives. The concept also requires
that selected demand-side management programs further these objectives to at least as great an extent as non-demand-side
management alternatives, such as generating units, purchased power or supply-side storage devices. In other words, it
requires that demand-side management alternatives be compared to supply-side alternatives. It is at this stage of evaluation
that demand-side management becomes part of the integrated resource planning process.

• Demand-side management identifies how customers will respond. Demand-side management is pragmatically oriented.
Normative programs (“we ought to do this”) do not bring about the desired change; positive efforts (“if we do this, that will
happen”) are required. Thus, demand-side management encompasses a process that identifies how customers will respond,
not how they should respond.

• Demand-side management value is influenced by load shape. Finally, this definition of demand-side management focuses
upon the load shape. This implies an evaluation process that examines the value of programs according to how they influence
costs and benefits throughout the day, week, month and year.

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Furthermore, despite its broad definition, demand-side management mainly results in the implementation of four main
types of components in conventional implementation.

These components include

(1) energy-efficient end-use devices (which includes modification to existing devices and processes as well as new
energy-efficient devices and processes);

(2) additional equipment, systems and controls enabling load shaping (such as thermal energy storage devices);

(3) standard control systems to turn end-use devices “on/off” or “up/down” as required or desired; and

(4) the potential for communications between the end-user and an external party (however, this is generally not
employed to a great extent).

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Demand Response

Demand response (DR) refers to mechanisms to manage the demand from customers in response to supply conditions, for
example, having electricity customers reduce their consumption at critical times or in response to market prices.

There has been a recent upsurge in interest and activity in demand response, primarily due to the tight supply conditions in
certain regions of the country that have created a need for resources that can be quickly deployed.

Demand response can broadly be of two types—incentive-based demand response and time-based rates.

Incentive-based demand response includes direct load control, interruptible/curtailable rates, demand bidding/buyback
programs, emergency demand response programs, capacity market programs, and ancillary services market programs.

Time-based rates include time-of-use rates, critical-peak pricing, and real-time pricing.

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Incentive-based demand response programs offer payments for customers to reduce their electricity usage during periods of
system need or stress and are triggered either for reliability or economic reasons.

A range of time-based rates is currently offered directly to retail customers with the objective of promoting customer demand
response based on price signals.

These two broad categories of demand response are highly interconnected, and the various programs under each category can
be designed to achieve complementary goals.

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ROLE OF TECHNOLOGY IN DEMAND RESPONSE

Q. Explain the role of technology in demand response

Technology plays a key role in enabling demand response. The future growth of the demand response market capability
depends on the cost, functionality and degree of process automation of technologies that enable demand response. Enabling
technologies for demand response include:

• Interval meters with two-way communications capability which allow customer utility bills to reflect their actual usage
pattern and provide customers with continuous access to their energy use data.

• Multiple, user-friendly, communication pathways to notify customers of real-time pricing conditions, potential generation
shortages, as well as emergency load curtailment events.

• Energy information tools that enable real-time or near-real-time access to interval load data, analyze load curtailment
performance relative to baseline usage, and provide diagnostics to facility operators on potential loads to target for
curtailment.

• Demand reduction strategies that are optimized to meet differing high-price or electric system emergency scenarios.20
• Load controllers and building energy management control systems (EMCS) that are optimized for demand response, and
which facilitate automation of load control strategies at the end-use level.

• On-site generation equipment used either for emergency backup or to meet primary power needs of a facility.

Advancements in technologies regarding control systems, telecommunication and metering all increase the opportunity for
end-users to monitor and adjust their electricity consumption in coordination with electricity market conditions.
Additionally, distributed generation is an important source of supply when traditional supply sources become scarce.

Developing these alternatives and incorporating them into the marketplace is increasingly becoming a reality and should
provide increased demand-side responsiveness in the future.

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CURRENT LIMITATIONS AND SCOPE FOR DYNAMIC ENERGY MANAGEMENT

Q. List the current limitations and scope for dynamic energy management(DEM)

Currently, the demand response enabling technologies have limitations in terms of system scaling and interoperation with other
similar systems that impair their ability to be scaled up to serve the entire industry.

Also, the individual demand response-enabling technology components discussed here are oftentimes implemented in a
piecemeal fashion without integration of the different technology components.

This results in demand response programs falling far short of the anticipated potential benefits associated with an integrated
strategy to manage load.

Demand response functions are often applied to standard end-use devices, with local control systems and one-way or basic two-
way communications.

Utilities or other energy service providers have not yet implemented for the most part the full functionalities associated with the
enabling technologies due to a number of technological, regulatory and economic barriers.
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Customers are often offered individual demand response programs instead of a single service offering comprised of different
options to manage their electricity load, which ultimately results in a low level of the potential being realized.

Furthermore, very rarely are energy service providers talking about integrating energy efficiency and demand response into a
single offering.
Virtually all energy efficiency programs, from market transformation programs (appliances and building codes) to immediate
resource acquisition programs (rebates and performance contracting) help to lower system peaks, even if peak reduction is not
the primary program goal.

Customers often do not connect their participation in energy efficiency programs with demand response, because they do not
understand that reducing their peak usage changes the system load profile and makes the electricity system more efficient.

Energy efficiency can reduce load significantly, and the load reductions occur over many hours of the load shape and for many
days of the year.

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 Distributed Energy Resources

In their most general sense, distributed energy resources include technologies for distributed generation (non-renewable and
renewable), combined heat and power, energy storage, power quality, and even demand-side management and demand
response.

Since demand-side management and demand response have been treated separately herein, the current scope of distributed
energy resources will include energy generation and storage technologies, including the generation of heat and power, and the
storage of electricity. (Thermal energy storage was encompassed within demand-side management.)

Distributed energy resources can be applied at the utility-scale where they feed into the distribution system, or they can be
applied at the building level.

The focus here is building-level distributed energy resources since they can be considered a demand-side energy alternative.

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The principal purposes of distributed energy resources are:

1. To supply stand-alone power and/or heat (e.g., for remote locations).

2. To augment power from the grid (e.g., to minimize power purchases).

3. To reduce transmission and distribution losses by placing power and energy sources closer to loads

4.To provide peak shaving or load leveling (e.g., to reduce peak demand costs and/or to enable participation in demand
reduction programs).

5. To guarantee power quality, reliability and security (e.g., for critical operations and processes).

6. To reduce capital cost of transmission facility construction.

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Some distributed energy resource technologies include:

• Solar photovoltaics

• Reciprocating engines

• Stirling engines

• Combustion turbines

• Microturbines

• Wind turbines

• Fuel cells (e.g., phosphoric acid, molten carbonate, polymer electrolyte membrane)

• Batteries (e.g., lead acid, nickel-cadmium, nickel-metal hydride, lithium ion, vanadium redox, zinc-bromine, sodium-sulfur,
solid oxide)

• Superconducting magnetic energy storage ,• Flywheel energy storage ,• Ultracapacitors for storage
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KEY CHARACTERISTICS OF SMART ENERGY-EFFICIENT END-USE DEVICES AND DISTRIBUTED ENERGY RESOURCES (TOGETHER
REFERRED TO AS “SMART DEVICES”)

Q. Explain the key characteristics of a) smart devices b)advanced whole building architecture c)DEM system

• Smart devices are comprised of very high-efficiency end-use devices and a variety of distributed energy resources (discussed in earlier sections).

• Smart devices are equipped with highly advanced controls and communications capabilities.

• Smart devices embedded with microprocessors will allow incorporation of diagnostic features within these devices based on critical operating variables and
enable them to undertake corrective actions.

• Distributed energy resources with intelligent controls are able to synchronize their operation with end-use devices in order to optimize system performance. They
are also enabled to automatically feed back power to the grid based on overall system conditions.

• Communications features for these devices need to be set up based on “open architecture” to enable interoperability.

• Smart devices contain microchips that have IP addresses that enable external control of these devices directly from the Internet or through a gateway. It is
desirable to have TCP/IP5 communication protocol so that the system can be set up and managed using common network management tools.

• These devices have “learning logic” built into them (artificial intelligence, neural networks) to improve on future performance based on past performance
experience, and on parameters such as building cool-down and heat-up rates, occupant habits, outside temperature and seasonal variables
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KEY CHARACTERISTICS OF ADVANCED WHOLE-BUILDING CONTROL SYSTEMS

Q. Explain the key characteristics of a) smart devices b)advanced whole building architecture c)DEM system

Advanced whole-building control systems will need to incorporate the following functionalities:

• Receiving and processing information from sensors

• Sending actuation signals for control of devices

• Learning physical characteristics of the building from sensor information

• Managing time-of-day profiles

• Displaying system status to occupants

• Obtaining command signals and overrides from occupants

• Learning the preferences and patterns of the occupants

• Receiving and displaying external signals, such as price information from the utility Advanced energy management and
control system (preferably web-based) is likely to be an enabling technology. 28
KEY FEATURES OF A DYNAMIC ENERGY MANAGEMENT SYSTEM

Q.Explain the key characteristics of a) smart devices b)advanced whole building architecture c)DEM system

The key features of a dynamic energy management system can be summarized as follows:

Incorporate End-User Flexibility—

Customers should have numerous options about how they can participate in a dynamic energy management system.
Customer flexibility must be built into any state of-the-art system. They should have the ability to use custom business logic
that is applicable to their own operations. For example, in response to high electricity price signals, some may choose to
allow remote realtime sheds, while others may want some advanced warning via pager or cell phone and the ability to opt
out, if desired

Simplicity of Operation Will Be a Key Features—

For easy user adoption of a dynamic energy management system, the user interface for the system will have to be concise
and intuitive for non-technical people. The system will need to work right out of the box with no programming requirement.
It will need to behave autonomously based on effective initial defaults and machine learning. 29
Leverage on Standard IT Platforms vis-à-vis Building Custom Systems—

One of the most important ways to keep costs low will be to leverage existing trends in technology. The use of existing IT
technology in such systems wherever possible is an important way to keep costs low. The public Internet and private
corporate LAN/WANs are ideal platforms for controls and communications due to their ubiquity, especially in large
commercial buildings. In addition, the performance of IT equipment (e.g., routers, firewalls, etc.) continues to improve and
equipment prices continue to drop. Dynamic energy management systems based on standard IT platforms will also tend to
be more scalable and secure than special-purpose systems developed specifically for the purpose.
“Open Systems” Architecture and Universal Gateways Essential for Integrating System Operation—

An important concept in the dynamic energy management system architecture is that the layers of protocols across all the
systems are common, and that seamless communication and control activity can occur. An “open system” architecture is
essential in integrating the system operation. Also, monitoring and controlling different devices from a central location or
from anywhere in the network can be done only if a universal gateway is used. Communication between devices and the
Internet is accomplished through standard communications pathways including Ethernet, telephone line or wireless
communications. 30
Integration With Existing Building Energy Management Systems Essential—

It will be advantageous for state-of-the-art dynamic energy management systems to have tight integration with any existing
EMCS and EIS and enterprise networks within buildings. This strategy maximizes the performance, distribution and
availability of the building data, while minimizing the installation and maintenance costs. In systems in which EMCSs and
EISs are highly integrated with enterprise networks and the Internet, managing the low of information is greatly simplified.

“Open Standards” and “Interoperability” are Key Characteristics—

For flexibility and future proofing, state-of-the-art dynamic energy management systems should use open standards wherever possible. Unlike proprietary
systems, truly open systems are interoperable. In other words, a device from one company (e.g., Cisco) will easily and naturally reside on a network with
products from other companies (e.g., Nortel). Communication using the TCP/IP protocol will ensure that the system can be set up and managed using common
network management tools.

Flat Architecture Essential for Robust, Low-Cost Systems—

A state-of-the-art dynamic energy management system would have a flat architecture in which there are a minimum number of layers of control network
protocols between the front-end HMI (Human Machine Interface) and final control and monitoring elements such as actuators and sensors. The most robust and
least costly systems should have no more than one enterprise network protocol and one control network protocol.
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 Questions – Module 3

1. Explain the components of dynamic energy management(DEM)

2. Explain the role of technology in demand response
3. List the current limitations and scope for dynamic energy mgmt(DEM) -2
4. Explain the key features of DEM
5. Define DEM? Explain with an example the Integrated communication architecture
6. Explain overview of DEM
7. Explain the key characteristics of a) smart devices b)advanced whole building architecture c)DEM system
8. Explain the following components used: a) smart efficient end used devices b) adv whole building control arch
9. Explain the terms a)Distributed energy resources b) Energy mgmt

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