What Makes a Smart Grid Smart?

The Chicago Commercial Office Building Perspective

Speaker: Michael MunsonCompany: Metropolitan Energy

260+ Buildings Private,

Institutional, Government/Public

170+ Affiliate Member Companies

125 Million Sq. Ft. of Office Space

~5% of ComEd’s Load

Ease of Information Access and Use Measure & Verify Improvements & Efficiency Better Investment Decisions Proof of DR Participation in Marketplace New Technologies, Infrastructure Monetize, Automate, Optimize, Innovate Continuously Develop & Prove Business

Case

Source: Forecasted Reserve Margin PJM RTO

(as of June 8, 2009)

Information, Information, Information Real-Time Data Access (real, real-time) Customer Usage and Market Information Market Transparency Control and Flexibility Incentives Market Requirements & Design Replicability – for Building Portfolios

Small changes in demand can result

In large changes to price.

PricePrice

QuantityQuantity

ΔΔQQ

QQ11 QQ22

SupplySupply

PP11

PP22

ΔΔPP

DD11

DD22

PJM prices can vary based on market forces,

going from about $210 to $35 below $0 in a very short time.

$10

$30

$50

$70

$90

$110

$130

$150

$170

$190

$210

-$10

-$30

8:30 PMJune 16

9:00 PMJune 16

9:30 PMJune 16

10:00 PMJune 16

10:30 PMJune 16

11:00 PMJune 16

11:30 PMJune 16

12:00 AMJune 17

12:30 AMJune 17

1:00 AMJune 17

1:30 AMJune 17

Defining Smart Grid◦ Definitions are static◦ Smart Grid is dynamic◦ Policy should enable, not dictate innovation

Information, Information, Information◦ The grid relies on informed decisions◦ Better information = better decisions

Other Policy Concerns◦ Market Recognition of Consumers◦ Marginal Costs vs. Average Costs◦ Rate Design Improvements◦ Market vs. regulation for consumer protections