Smart Consumption Solutions

Siemens Industry, Inc. Building Technologies

AgendaAgenda

•What exactly is the Smart Grid?

•Smart Buildings and Smart Consumption

•Intelligent Load Management (ILM) the Next Generation in Demand Response

•MicroGrids

•LEED Points

WHAT EXACTLY IS THEWHAT EXACTLY IS THE

SMART GRID?SMART GRID?

Smart Consumption is driven by US market trends

Green/Energy - part of corporate strategic planning

Motivating factors – energy cost savings, enhanced public image and attracting new customers

LEED certification

Buildings need to integrate energy generation capabilities

Alternative and renewable energy Distributed generation and micro-grids Net Zero Buildings: e.g. CA legislation

Governments mandate energy efficiency

15% energy reduction by 2015 Cut emissions 28% by 2020 DoD new construction after 2015: Net Zero Energy

Green/Energy Efficiency is attractive for investment

Green power is the #1 Venture Capital (VC) investment beating IT and Biotech with 27% of all VC investments

Decision makers are focused on energy efficiency - $ reduction

Decision makers attention up 71% year-over-year Buildings consume 40% of worldwide energy

Smart Grid Dept of Energy $3.4 billion investment in technology New rules and business models - aggregators

Before

One-way limited communication

One-way power flow

Centralized generation

No electric vehicles

Few sensors and analog control

Little to no consumer choice

Reactive maintenance

Limited usage transparency

Smart Grid:Yesterday and Today

After

Power

Information

Bi-directional and instantaneous communication and metering

Bi-directional power flow

Millions of electric vehicles

Applications

Pervasive monitoring and digital control

Self-monitoring & high visibility

Many consumer choices

Condition-based maintenance

Proliferation of numerous applications

Smart Grid: Tomorrow’s Integrated Grid

The transition has begun, with peak-demand management (demand response, ILM), and dynamic pricing (e.g. critical peak pricing programs)TODAY

Smart Grid adds full communications, intelligence and transparency to the grid

DistributionTransmissionGeneration Consumption

Grid management

Virtual Power PlantNegawatts

Smart Grid - Smart Consumption - Smart Buildings

Energy storage Pricing CO2 reduction

Energy efficiency E-car integration

Optimizing

Avoid investments in new power plants

Increase power quality Integrate volatile renewable

energy E-Car charging

Balancing the grid

Consumption follows GenerationThere is no Smart Grid without Smart Buildings

Intelligent Load Management (ILM)

Price of electricity supplySupply

Quantity

QDRQ

P

PDR

Price reduction

Peakdemand reduction

Demand

Consumption to grid

Supply

24h0h

Smart Consumption

Applications

Two-way communication with utilities

Proactive energy management / smart consumption

Energy sources with onsite generation assets

Storage capacity for added flexibility

Active carbon management

1

2

3

4

5

1

2

5

3

4

Smart Building

Smart Building

Smart grid infrastructure

Efficiency built into building systems and integration into the Building Automation System

StorageOnsite generationControl strategiesDemand

Consumption to grid

Supply

24h0h24h

Base loadDemand

0h

Consumption

to grid

Smart consumption infrastructure

Energy management applicationsOpenADR

ZigBeeBACnet

Transparency infrastructure

Smart Building: Infrastructure

Real-time MonitoringReal-time MonitoringReal-time MonitoringReal-time Monitoring Public InterfacePublic InterfacePublic InterfacePublic InterfaceAnalysis & ReportingAnalysis & ReportingAnalysis & ReportingAnalysis & Reporting

Building Performance Dashboard

Built for public viewing Web based

Energy Monitoring & Control (EMC)−Remote database−Historical data−Web based−Integrated Data

Sources−Executive Dashboard−Detailed Analysis

Facilities / Engineering

Facilities / Engineering, Energy / Utilities + Financial, Green /

Sustainability

Visitors, Employees, Occupants, General PublicP

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Use

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Pri

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sers

Smart Building: Monitoring, Analysis and Reporting

INTELLIGENT LOAD MANAGEMENT INTELLIGENT LOAD MANAGEMENT (ILM) (ILM)

THE NEXT GENERATION OF DEMAND RESPONSETHE NEXT GENERATION OF DEMAND RESPONSE

Why do we need demand response?

Every Person who gives up their seat is a “Negawatt” and will receive compensation for giving up a seat.

In other words the utility company will pay you to reduce your load during peak demand

An oversold or undersold flight is similar to the electrical grid at capacity….

Intelligent Load Management

Leverages existing BAS equipment to generate cash payments through automated load management

Allows building operators to participate in Demand Response, Critical Peak Pricing and Smart Grid programs through local utilities

Balances multiple factors: Corporate standards Efficiency Financial Site conditions

The technology leader in multi-site load aggregation with proven financial results

An event notification is received via a change in event status from the Demand Response

Automation Server

Our Intelligent Software Aggregation Engine acknowledges an event is being called

Within 1 minute of initial dispatch, load begins to ramp down at customer sites

Our Aggregation Engine relays signal toonsite communicators and notifies the

customer simultaneously

- Siemens high-tech approach facilitates reliable participation in short notice programs.

- Due to our real-time visibility Siemens is able to shield the customer, and itself, from penalty risk.

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ryHow does it work?Completely Automated DR Solution

We work to make sure your building stay within set parameters to minimize impact and maximize revenue…

Buildings can provide capacity to the grid during peak events- by reducing consumption where it is curtailable for a period of time. This capacity is valuable, and we help our customers to make the most of it.

Peak demand “event” on the grid:- kWh prices are high (dynamic pricing, CPP programs)- Utility pays bonuses to consumers who can curtail load.

Basically, power can be “sold back”

In many areas, “ratchet clauses” increase a customer’s electricity rate for the whole year if their demand exceeds a given kW threshold at any time.

$

Real Time Monitoring Dashboard for Demand Response

Real Time Monitoring Dashboard for Demand Response

Manual DemandResponse

Semi-AutomatedDemand Response

Description

Reliability ofCapacity

Speed

PricingEfficiency

Labor-intensive Manually turn off or change set points on each asset node

Unreliable Process dependent on human interaction and ability to make changes at a given point in time

Very slow

Poor, capacity not reliable

Pre-programmed response is initiated by a person

Person uses centralized control system

Unreliable Process dependent on human interaction and ability to make changes at a given point in time

Possibly slow

Poor, capacity not reliable

No human interactionExternal

Communication signalOverrides of nodes or

systems are possible

Verifiable Overriding nodes

hard to project / plan

Fast

Moderate, reliability is questionable or is

discounted due to possible overrides

ILM ™

Logic that sits at a layer above Fully Automated Demand Response system

Override of node or systems are possible Continuous management of

load

VerifiableDiversified, redundant and managedLoad balanced across multiple sites / enterprise

Fast, 2 minutes or less

Efficient, loads are managed and reliable which reduces the discounting of capacity

or price

Fully AutomatedDemand Response

Traditional DR

Siemens Intelligent Load Management

Comparison of ILM to Traditional Demand Response

ILM Technology Features and Benefits

Benefits

100% automated response

No on-site personnel needed to implement response measures

Capacity on-demand

Internet based

“Light Touch” – loads are shed gradually and dynamically, according to customer priorities

Unique Technology Features

New source for incentives

Intelligent automation

Reduced energy expenses

Earn LEED points

Improved Corporate Social

Responsibility (CSR)Carbon negative power

generation

DYNAMIC BUILDING/CAMPUS DYNAMIC BUILDING/CAMPUS OPTIMIZATION OPTIMIZATION

WITH WITH MICROGRIDSMICROGRIDS

Large campus customers are seeking advanced solutions

Stage 1 Focus on core

operations

Stage 2 Energy savings via

conventional demand side energy strategies

Stage 3 Energy reduction using advanced and/or basic

dynamic strategies

Stage 4 Continuous

demand/supply optimization based on

internal & external factors

Stages in energy infrastructure maturity

2015

75%

50%

15%

30%

5%

15%

5%

Source: Customer interviews, Smart Consumption – large commercial team

2010

% o

f m

arke

t

• Clean electricity, heating and cooling generated by local energy source, e.g. solar, geothermal, natural gas, etc.

Realize high level energy self-sufficiency through advanced energy management system

Continuous operation in islanding mode when external network faults

Optimal energy management achieve both economic and ecological targets

Improved energy efficiency Integrated renewable power generation Supply and demand balancing High electricity reliability Safe, easy-to-operate and modular solutions

that may be upgraded as required

Functions and Benefits of Microgrids

A microgrid power system Key Functions

Benefits

Microgrids have higher reliability, economic & ecological benefits

The Smart Energy Box allows buildings or groups of buildings to react flexibly to the Smart Grid

• Pilot projects at UC Berkeley and Carnegie Mellon, US Air Force Academy

• Uses Energy Plus to simulate alternative control strategies / schedules, then chooses the best control strategy

• Communicates with the Smart Grid, reacting to Dynamic Pricing and Demand Response signals

• Communicates with field devices via BACnet and plug-load protocols (JADE)

• Keeps the building within operational parameters

• Integrates weather forecasts and occupancy inputs into its optimization

• Allows the building to re-schedule activities dynamically in response to changes in weather or energy cost

Higher Education Building Technologies Council

DEMAND DEMAND RESPONSE AND RESPONSE AND LEEDLEED

Points Available

CreditCredit PointsPoints DescriptionDescription

PC8 (LEED 2009 NC & EBOM)

1 Manual, Semi- or Fully-Automated Demand Response

2012 NC – Case 1, Option 1

1 Manual Demand Response

2012 NC – Case 1, Option 2

2 Semi-or Fully-Automated Demand Response

2012 NC – Case 2 1If no DR Program in area, have in place infrastructure for future DR or Real time pricing program when it becomes available

2012 EBOM – Case 1, Option 1

1 Manual Demand Response

2012 EBOM – Case 1, Option 2

3 Semi-or Fully-Automated Demand Response

2012 EBOM – Case 2 1If no DR Program in area, have in place infrastructure for future DR or Real time pricing program when it becomes available

Demand Response Credit