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Smart-Grid Strategy: Quantifying Benefits

Modeling the value of various technologies and applications.

Fortnightly Magazine - July 2009

Mar. 25, 2009)

5. In the case of SG benefits involving DR, the only benefits measured are the savings in the costs of new supply (fixed and variable). Additional analysis is needed to divide this savings into customer vs. shareholder benefits.

6. Automatic DR is a communications infrastructure that provides the owner of the system with electronic signals that communicate with the facility’s energy-management control system to coordinate load reductions at multiple end-uses. For information on Auto-DR, see Wikler et. al. , “Enhancing Price Response through Auto-DR: California’s 2007 Implementation Experience,” Proceedings of the ACEEE Summer Study on Energy Efficiency in Buildings, August 2008.

7. Hydro One, “The Impact of Real-Time Feedback on Residential Electricity Consumption: The Hydro One Pilot,” March 2006.

8. EPRI, “The Green Grid,” June 2008.

9. The model utilizes an optimization module to capture the value of selling power back to the grid by dispatching the battery power against two historical price series to maximize profits on a daily basis: a day ahead market and a 10-minute spinning reserve market. By charging when the price is low and selling this power back to the grid when the price is high, energy costs are reduced and flexibility is added to the grid.

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