Demand Response coming to Germany and Europe- Demand Response Aggregation - Demand Response as-a-Service to utilities and TSOs - Intelligent Energy Efficiency Services ! Focus: Industrial

Demand Response coming to Germany and Europe

Tom Schulz, Co-founder and COO, Entelios AG Rome — May 23, 2013 www.entelios.com

© 2013 Entelios AG | All rights reserved |

§  Founded 2010

§ Services: -  Demand Response Aggregation -  Demand Response as-a-Service

to utilities and TSOs -  Intelligent Energy Efficiency Services

§  Focus: Industrial & Commercial load control & management

§ Offices: Germany – Berlin and Munich. Development team in India.

Entelios is a leading solution provider for Demand Response and virtual power plants. Facts

© 2013 Entelios AG | All rights reserved | 2

Germany’s “Energiewende”: betting on energy efficiency and renewables while phasing out nuclear power


Source: Entelios analysis, Energiekonzept der Bundesregierung, BMU, BMWi

0

100

200

300

400

500

600

700

2011 2020 2030 2040 2050

TWh/

a

Power generation in Germany by year, by energy source

Renewable Nuclear Fossil

Wildly fluctuating renewable energy sources are making it more difficult for conventional power plants to cover the residual load

Residual Load = Demand not covered by renewables


Demand and residual load at 50% RE (in GW)

Source: IER Universität Stuttgart

hours

All green


– with a dirty secret

In electricity grids, Demand Response is a process to manage customer consumption (demand) in response to supply conditions.

Introducing Demand Response


Demand Response is greener, faster and more capital efficient than many alternatives

7

Evaluation of the 5 pillars of the „Energiewende“


Quelle: Entelios Analyse

Entelios is expert in the intelligent management of decentralized energy systems – loads, storage & generation.


Commercial Usage

•  Balancing power* (ancillary services)

•  Exchange trading (e.g. EEX intraday)

•  OTC trading

•  Emergency capacity (e.g. AbLastV)

•  Flexibility markets

•  Optimization of own balancing group**

•  Optimization of own generation portfolio

* Tertiary/Minute and Secondary Reserve Power ** Avoidance of unscheduled balancing energy

Weather Info

Market Signals

Grid Status

Customer Needs

Lighting HVAC Pumps

Smelters

Biomass

Wind

Batteries

Solar

Mills

Geothermal

Hydro

- +

CHPs

In operations by Entelios

In preparation by Entelios

Virtual Power Plant Powered by Entelios

Emergency Generation

Selection of industries and businesses with a high potential for Demand Response. Industries suited to DR

Hotels

Food Processing Industries Foundry / Furnace Lumber Mills

Shopping Centers Water- / Air Treatment Concrete Factories

Breweries Cold Stores Chemical Industry

Public Buildings / Facilities

Printing Plants


Entelios as of today is capable to switch quite a number of loads and distributed generation.

Lighting

Ventilation

Air Conditioning

Cooling

Heating

Fork Trucks

Pumps Pressure


The Entelios Network Operations Center builds out of single loads (bricks) a load curve (brick wall) for the energy markets.

The Entelios Principle


Power Market

Control Reserve

Demand Side Grid Side

Load Management Intelligence

Entelios offers a Network Operations Center architecture committed to “DR 2.0 / DR 3.0”.

Dem

and

Side

Par

ticip

ants

CRM, PRM Customer Analytics

Billing & Invoicing Revenue Assurance

E-Trading Asset Management

Interfaces Interfaces

Syst

em O

pera

tor

& U

tility

Clie

nts

Entelios Network Operations Center (NOC) Core Real-time Rule-based Engine

Residential (E-Mobility only)

Businesses & Industry

Prediction & Modeling System


Entelios develops reliable hardware and software to bring the flexibility of industrial assets to the energy market. Entelios E-Box


Positive minute reserve „generated“ by industrial loads


Demand side potential from industry and commerce in Germany estimated around 9 GW

Source: FfE, München


Flexibility Potential

SEDC membership includes 44 utilities and energy related companies across Europe; Entelios being one of the three founding members.

TABELLE


www.sedc-coalition.eu

The SEDC Vision is to p r o m o t e t h e a c t i v e participation by the demand side in European electricity markets – ensure consumer benefits, increase security of supply and reduce carbon emissions. The SEDC focus is to promote Demand Side programs such as, demand response - peak clipping and shifting, energy u s a g e f e e d b a c k a n d information, smart home, in-h o m e a n d i n - b u i l d i n g automation, electric vehicle charging management, and other programs related to making demand a smart, interactive part of the energy value.

Entelios in European project – ADVANCED: best practices in Demand Response.


From a two-tier to a three-tier energy system: Introducing a capacity mechanism


N.N.

Capacity

DSO TSO

Grid

BRP

Market

•  retailer • marketer •  generators •  trader •  virtual power

plants Notes: market: energy-only market Marketer: buyer of renewable energy according to EEG market-premium scheme BRP: balance responsible party

Demand Response programs in all different tiers and segments of the energy system


DSO TSO BRP N.N.

Grid Market Capacity

•  local Demand Response

•  feed-in management

•  „capacity traffic light“

•  reserve energy, adapted to loads and renewable generation

•  load shedding regulation (AbLaV)

•  arbitrage • minimizing

balancing energy costs

Notes: AbLaV: Verordnung zu abschaltbaren Lasten (12/2012)

Demand Response programs in all different tiers and segments of the energy system Examples


DSO TSO BRP N.N.


•  DSO balances high PV-generation with heat pumps

•  DSO curtails RE generation

•  positive reserve energy from a pool of industrial loads

•  negative reserve energy from a pool of decentral generation

•  flexible aluminum production

•  operating a pumped-storage hydroelectric plant

• minimizing balancing energy costs by a „green power retailer“

Notes: “green power retailer: “Grünstromversorger” nach EEG

Five (!) parties trying to control the identical flexible technical asset


DSO TSO BRP N.N.


SPS Plant Operator

Plant

Scada

Priorization and coordination are necessary


DSO TSO BRP N.N.


Entelios IT

Plant Operator

Plant

Scada

Standards are necessary: •  roles •  agreements •  processes •  data formats, protocols •  technical standards •  fees, payments

Too many bilateral contractual relationships are complex and slow down Demand Response’s market entry Demand Response in today’s market design


TSO BRP

DSO Retailer Power Consumer & Flexibility Supplier

DR Aggregator

Agreement on schedule exchange,

BRP-approval for PQ

Agreement on payments

Agreement, report of non-availability, and § 19

(2) StromNEV, Confirmation for PQ

Prequalification (PQ), supply of reserve energy

Agreement on participation

Demand Response is: •  fast •  capital efficient •  green

Entelios is Demand Response


24

Thank You!

Thomas Schulz, COO Entelios AG, Office Munich Web www.entelios.com Phone +49 89 552 9968-0 Email [email protected]


Documents

Demand Response coming to Germany and Europe- Demand Response Aggregation - Demand Response as-a-Service to utilities and TSOs - Intelligent Energy Efficiency Services ! Focus: Industrial