A Greener Grid
• Distributed Energy Resources
• Power Quality/Energy Sensing
• Demand Side Management/Direct Load Control
Electric utilities are charged with meeting the combined electrical demand of end-users by increasing and decreasing generation accordingly. Baseload generation is the lowest level of generation required to meet electrical demand over a twenty-four hour period. As electricity demand increases above baseload, utilities produce more electricity in active generation facilities, and also activate reserve additional generation resources often referred to as peaker plants. Peaker plants are activated to meet periods of peak demand when the electrical load the utility must supply is at its highest point. As peak demand increases narrowing the gab between the utilities electrical demand and the utilities maximum generation capacity, the threat of brownouts increases at the same time the distribution grid’s backup reliability is compromised (See DER and Order 888).
The national average load factor (the degree to which physical facilities are being utilized) is only about 55% but many utilities are finding they are reaching dangerously uncomfortable peak demand levels multiple times a year. Utilities are now looking into demand side management and direct load control to actively shift load from peak periods to non peak periods, and ad a level of grid security with the ability to reduce the distribution grid’s load in case of equipment failures or excessive electrical usage.
Close to one third of energy is used for HVAC systems. NYC has estimated 5.6Million AC units that can draw up to 5,600 Megawatts. In periods of peak demand direct load control and demand side management can enable a utility to cycle down non essential electrical demand such as AC units for short periods of time to reduce grid wide demand. In the case of NYC, if a utility were to cycle through blocks of 20% of all AC units and shut them down for 12 minutes apiece, demand would be reduced by 1,120 Megawatts, or two coal fired power plants.
The Shpigler Group estimates annual benefits from a fully implemented smart grid with demand-side management of 135kWhr per meter energy reduction and cost savings of $7 Million annually for a utility.